[House Hearing, 110 Congress]
[From the U.S. Government Publishing Office]
THE U.S. MILITARY BUILDUP ON GUAM AND CHALLENGES FACING THE
COMMUNITY
=======================================================================
OVERSIGHT FIELD HEARING
before the
SUBCOMMITTEE ON INSULAR AFFAIRS
of the
COMMITTEE ON NATURAL RESOURCES
U.S. HOUSE OF REPRESENTATIVES
ONE HUNDRED TENTH CONGRESS
FIRST SESSION
__________
Monday, August 13, 2007, in Mangilao, Guam
__________
Serial No. 110-40
__________
Printed for the use of the Committee on Natural Resources
Available via the World Wide Web: http://www.gpoaccess.gov/congress/
index.html
or
Committee address: http://resourcescommittee.house.gov
______
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 2008
37-527 PDF
For Sale by the Superintendent of Documents, U.S. Government Printing Office
Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; (202) 512-1800
Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001
COMMITTEE ON NATURAL RESOURCES
NICK J. RAHALL II, West Virginia, Chairman
DON YOUNG, Alaska, Ranking Republican Member
Dale E. Kildee, Michigan Jim Saxton, New Jersey
Eni F.H. Faleomavaega, American Elton Gallegly, California
Samoa John J. Duncan, Jr., Tennessee
Neil Abercrombie, Hawaii Wayne T. Gilchrest, Maryland
Solomon P. Ortiz, Texas Chris Cannon, Utah
Frank Pallone, Jr., New Jersey Thomas G. Tancredo, Colorado
Donna M. Christensen, Virgin Jeff Flake, Arizona
Islands Stevan Pearce, New Mexico
Grace F. Napolitano, California Henry E. Brown, Jr., South
Rush D. Holt, New Jersey Carolina
Raul M. Grijalva, Arizona Luis G. Fortuno, Puerto Rico
Madeleine Z. Bordallo, Guam Cathy McMorris Rodgers, Washington
Jim Costa, California Bobby Jindal, Louisiana
Dan Boren, Oklahoma Louie Gohmert, Texas
John P. Sarbanes, Maryland Tom Cole, Oklahoma
George Miller, California Rob Bishop, Utah
Edward J. Markey, Massachusetts Bill Shuster, Pennsylvania
Peter A. DeFazio, Oregon Dean Heller, Nevada
Maurice D. Hinchey, New York Bill Sali, Idaho
Patrick J. Kennedy, Rhode Island Doug Lamborn, Colorado
Ron Kind, Wisconsin Mary Fallin, Oklahoma
Lois Capps, California Kevin McCarthy, California
Jay Inslee, Washington
Mark Udall, Colorado
Joe Baca, California
Hilda L. Solis, California
Stephanie Herseth Sandlin, South
Dakota
Heath Shuler, North Carolina
James H. Zoia, Chief of Staff
Jeffrey P. Petrich, Chief Counsel
Lloyd Jones, Republican Staff Director
Lisa Pittman, Republican Chief Counsel
------
SUBCOMMITTEE ON INSULAR AFFAIRS
DONNA M. CHRISTENSEN, Virgin Islands, Chairwoman
LUIS G. FORTUNO, Puerto Rico, Ranking Republican Member
Eni F.H. Faleomavaega, American Elton Gallegly, California
Samoa Jeff Flake, Arizona
Raul M. Grijalva, Arizona Don Young, Alaska, ex officio
Madeleine Z. Bordallo, Guam
Nick J. Rahall II, West Virginia,
ex officio
------
CONTENTS
----------
Page
Hearing held on Monday, August 13, 2007.......................... 1
Statement of Members:
Bordallo, Hon. Madeleine Z., a Delegate in Congress from Guam 4
Prepared statement of.................................... 9
Christensen, Hon. Donna M., a Delegate in Congress from the
Virgin Islands............................................. 1
Prepared statement of.................................... 3
Statement of Witnesses:
Bice, David F., Major General (Retired) USMC, Executive
Director, Joint Guam Program Office........................ 17
Prepared statement of.................................... 19
Camacho, Hon. Felix P., Governor of Guam..................... 37
Prepared statement of.................................... 39
Cohen, Hon. David B., Deputy Assistant Secretary for Insular
Affairs, U.S. Department of the Interior................... 13
Prepared statement of.................................... 15
Cristobal, Hon. Hope A., Former Senator, Guam Legislature.... 68
Prepared statement of.................................... 71
Leberer, Trina, Marine Conservation Coordinator, The Nature
Conservancy, Micronesia Program............................ 80
Prepared statement of.................................... 82
Lujan, Kenneth Q., Guam Branch Manager, U.S. Small Business
Administration............................................. 22
Prepared statement of.................................... 24
Robertson, John M., P.E., Chairman, Government, Military, and
Labor Affairs Committee, Guam Contractors Association...... 89
Prepared statement of.................................... 91
Ruder, Stephen C., Chairman of the Board, Guam Chamber of
Commerce................................................... 75
Prepared statement of.................................... 77
Sanchez, Simon A., II, Chairman, Consolidated Commission on
Utilities.................................................. 49
Prepared statement of.................................... 50
San Nicolas, Benny P., Chairman, Southern Soil & Water
Conservation District...................................... 72
Prepared statement of.................................... 73
Savares, Hon. Melissa, Mayor of Dededo, Guam, President,
Mayor's Council of Guam.................................... 46
Prepared statement of.................................... 48
Won Pat, Hon. Judith T., Minority Leader, 29th Legislature of
Guam....................................................... 41
Prepared statement of.................................... 43
Additional materials supplied:
List of individuals submitting statements for the record..... 12
OVERSIGHT FIELD HEARING ON ``THE
U.S. MILITARY BUILDUP ON GUAM AND CHALLENGES FACING THE COMMUNITY.''
----------
Monday, August 13, 2007
U.S. House of Representatives
Subcommittee on Insular Affairs
Committee on Natural Resources
Mangilao, Guam
----------
The Subcommittee met, pursuant to call, at 10:10 a.m., at
the College of Liberal Arts and Social Sciences Lecture Hall,
University of Guam, Mangilao, Guam, Hon. Donna Christensen
[Chairwoman of the Subcommittee] presiding.
Present: Delegates Christensen and Bordallo.
STATEMENT OF THE HON. DONNA M. CHRISTENSEN,
A DELEGATE IN CONGRESS FROM THE VIRGIN ISLANDS
Mrs. Christensen. The Oversight Field Hearing by the
Subcommittee on Insular Affairs will come to order. The
Subcommittee is meeting today to hear testimony on the ``U.S.
Military Buildup on Guam and Challenges Facing the Community.''
Good morning and Hafa Adai. Let me begin by welcoming the
First Lady and by thanking the University of Guam and its
President, Harold Allen, for hosting us today. There's no
better place to conduct a hearing such as this than in a public
university, a place that promotes not only education and the
free exchange of ideas, but also works to create the kind of
strong community that we are talking about today.
The staff and faculty have been wonderful to work with and
we really appreciate all of the assistance that they've
provided to us in helping to put this hearing together. It is
truly an honor for me to be on this beautiful island of Guam
where America's day begins and where our nation's westernmost
border also begins.
As our country better prepares to protect our people and
our homeland, we are all challenged by change. Nowhere though
is a challenge greater than on Guam, as we look to the
potential military buildup plan for this island paradise, this
piece of America closest to Asia. It is therefore fortuitous
that there is a Subcommittee on Insular Affairs which was re-
established by the House Natural Resources Full Committee
Chairman, Nick Rahall, at the beginning of this 110th Congress.
I believe Chairman Rahall recognized that our U.S.
territories and also those island nations freely associated
with the United States have great challenges in front of us
today. Developing and diversifying economies, preserving
culture and language, protecting the environment, resolving
political status, these issues are not new, nor are they
exclusive to any one territory. They are issues that have no
immediate solution, issues that require time, energy, political
will power, debate, deliberation, and compromise to reach
resolution.
We are here this morning because an additional set of
issues has presented itself in the past few years. It is one
that is exclusive to Guam, as there is no other territory or
state in our union which has undergone what Guam could
potentially undergo if a final decision is made to buildup the
military presence here in Guam as has been projected.
The Subcommittee is here with you on Guam because we are
prepared to be your partners on this path. As the Chair of this
subcommittee and as a representative of your sister territory
in the Caribbean, I want to be sure that we are engaged, and
that military planners and your leaders are aware that we are
sensitive to the concerns which will be raised throughout this
process. We are prepared to see the challenges become
opportunities, that concerns are replaced with confidence, and
that obstacles are overcome with advocacy.
Along with me today is, of course, your own delegate, The
Honorable Madeleine Bordallo. She and I have a very strong
relationship and it is because of her determination that we
begin this step with you today. In Congress, she has been
steadfast in representing the interest of the people of Guam.
It is because of her that I was happy to take on your fight and
revisiting the issue of providing equity to Guam for war claims
resulting from the island's World War II occupation. It was a
fight with an overwhelming result as the House of
Representatives passed it by more than a two-thirds majority in
favor of the Guam World War II Loyalty Recognition Act. I
continue and I will continue to work with Ms. Bordallo to have
this Senate act on her legislation because the claims should be
revisited and equity restored.
During the past few days of my visit here, I've begun to
get a good sense of what the big military picture is and how
the plans for Guam, and now in their early stages, are
beginning to take shape. We have also heard from many different
sectors of the Guam community. Many are hopeful and positive
even in the midst of uncertainty. The questions run the gamut;
infrastructure, schools, business, culture, society,
healthcare, roads, housing, labor. These are all very fair and
very appropriate concerns that any community would have. We
have the opportunity to discuss these today and Congresswoman
Bordallo, of course, is going to provide another opportunity on
Thursday at her town meeting, and I hope that many who would
have wanted to testify today, but who we could not accommodate,
and those who are testifying by their protest outside, will
take the opportunity to make their voices heard on Thursday
evening.
So, the challenge for now is twofold; determining the new
role of Guam in defending our nation, and defining the Federal
Government's responsibility to the people of Guam as this role
unfolds. The first can only be done by military planners and is
driven by threats to our nation. Latter though, cannot be done
without the input of the people of Guam.
Today, we will be receiving testimony which will build upon
the first impressions we've received, the meetings and the
discussions we've already had. We will also begin to build the
Congressional record on the military buildup and the possible
impact on the Guamanian people.
It is important to remember that we are only at the
beginning of this process, which only the most optimistic
project will really end in 2014. So, time is on all of our
side.
It is also important to remember that all of the right
elements are here. All that is needed is a commitment to work
collaboratively to make the buildup as a success that I know it
can be.
I want to welcome our witnesses. I want to welcome all and
thank all who have provided us with information already, and
all who are here with us in this auditorium today.
[The prepared statement of Mrs. Christensen follows:]
Statement of The Honorable Donna Christensen, Chairwoman,
Subcommittee on Insular Affairs
Good morning and Hafaa Adai.
Let me begin by thanking the University of Guam and its President
Harold Allen for hosting us today. There is no better place to conduct
a hearing than at a Public University--a place that promotes not only
education and a free exchange of ideas but also creates a strong
community. The staff and faculty have been wonderful to work with and
we truly appreciate all the assistance they have provided in helping to
put this hearing together.
It is truly an honor to be here on the beautiful island of Guam,
where America's day begins, and where our Nation's westernmost border
also begins.
As our country better prepares to protect our people and our
homeland we are all challenged by change. Nowhere though is the
challenge greater than on Guam as we look to the potential military
buildup planned for this island paradise--this piece of America closest
to Asia.
It is therefore fortuitous that there is a Subcommittee on Insular
Affairs which was re-established by the House Natural Resources Full
Committee Chairman Nick Rahall, at the beginning of the 110th Congress.
I believe Chairman Rahall recognized that our U.S. territories, and
also those island nations freely associated with the United States,
have great challenges in front of them today.
Developing and diversifying economies, preserving culture and
language, protecting the environment, resolving political status--these
issues are not new, nor are they exclusive to any one territory. They
are issues that have no immediate solution and they require time,
energy, political will power, debate, deliberation, and compromise to
reach resolution.
We are here this morning because an additional set of issues has
presented itself in the past few years. It is one that is exclusive to
Guam, as there is no other territory or State in our Union, which has
undergone what Guam could potentially undergo if a final decision is
made to buildup the military presence here on Guam.
This Subcommittee is here, with you, on Guam because we are
prepared to be your partners on this path. As the chair of this
Subcommittee, and as a representative of your sister Territory in the
Caribbean, I want to be sure that we are engaged and that military
planners and your own leaders are aware that we are sensitive to the
concerns which will be raised throughout this process. We are prepared
to see that challenges become opportunities, concerns are replaced with
confidence, and obstacles overcome with advocacy.
Along with me today is your Delegate, Madeleine Bordallo. She and I
have a strong relationship and it is because of her determination that
we begin this step with you. In Congress she has been steadfast in
representing the interests of the people of Guam. It is because of her
that I was happy to take on your fight revisiting the issue of
providing equity to Guam for war claims resulting from the island's
World War II occupation. It was a fight with an overwhelming result as
the House of Representatives passed by more than a two-thirds majority
in favor of the Guam World War II Loyalty Recognition Act. I continue
to work with Ms. Bordallo to have the Senate act on her legislation
because claims should be revisited and equity restored.
During the past few days of my visit here, I have begun to get a
good sense of what the big military picture is and how the plans for
Guam are beginning to take shape. We have also heard from different
sectors of the Guam community. Many are hopeful and positive though
there is midst of uncertainty. The questions run the gamut--
infrastructure, schools, business, culture, society, healthcare, roads,
housing, labor--these are all very fair and appropriate concerns that
any community would have.
So, the challenge, for now, is twofold. Determining the new role of
Guam in defending our Nation; and defining the Federal Government's
responsibility to the people of Guam as this determination unfolds. The
first can only be done by military planners and driven by threats on
our Nation; the latter cannot be done without the input of the people
of Guam.
Today we will be receiving testimony which will build upon those
first impressions, and which will also begin to build the congressional
record on the military buildup and the possible impact on the Guamanian
people.
It is important to remember that we are only at the beginning of a
process which only the most optimistic project will end in 2014. So
time is on all of our side.
All of the right elements are here. All that is needed is a
commitment to work collaboratively to make the buildup the success I
know this can be.
______
Mrs. Christensen. And now, the Chair recognizes
Congresswoman Madeleine Bordallo for any statement that she
might have.
STATEMENT OF THE HON. MADELEINE Z. BORDALLO,
A DELEGATE IN CONGRESS FROM GUAM
Ms. Bordallo. Good morning and Hafa Adai. First Lady
Camacho, members of the Legislature, the Mayors, Dr. Allen, and
the faculty of the University of Guam, thank you for allowing
us to use the facility, our distinguished witnesses, ladies and
gentlemen.
Madam Chairwoman, I thank you for agreeing to hold this
very important hearing today on Guam about the impending
military buildup for our island. As you know, this hearing is
very important to us, to my constituents, as it is the first
Congressional hearing to be held in Guam in 24 years. It has
been my firm belief that the military buildup on Guam will
offer our community a unique opportunity to roll our economy
and to improve our public works and infrastructure.
The 2005 Integrated Global Presence and Basing Strategy
from the Overseas Basing Commission, which was chartered by
Congress, laid the groundwork for the rebasing of roughly 8,000
Marines from the 3rd Marine Expeditionary Force to Guam from
Okinawa, Japan. The Overseas Basing Commission report
reaffirmed a strategic importance of Guam in the region. By
placing United States Armed Forces on Guam, it affords the
Department of Defense the flexibility and the freedom of action
to respond to regional threats in crises, while providing our
island and our people additional security in the face of rising
global threats.
This very point of the strategic value of Guam has been
underscored in Washington before Congress by many Defense
analysts and leaders, including our immediate previous
Secretary of Defense, The Honorable Donald Rumsfeld, who
traveled to Guam in 2003 to review for himself the
opportunities for and the value of placing additional assets
and personnel on our military bases.
The strategic value of Guam was also emphasized by Governor
Camacho, the Guam Chamber of Commerce, and myself before the
BRAC Commission in 2005. And the recognition of this strategic
value of Guam is a key reason why we now see renewed interest
and investment from DOD in our military bases.
I continue to believe and maintain that the BRAC closures
in 1990s were a mistake, including the closure of SRF, PWC, the
redeployment of ships and aircraft based here, and the
downsizing of NCTAMS.
The Secretary of State, Dr. Condoleezza Rice, has declared
2007 to be the Year of the Pacific. The United States is
increasingly focusing on efforts in our region to increase
stability, good governance, and economic development through
closer political economic and cultural ties to our neighbors.
Our island is central to these efforts. All of this has laid a
foundation for renewed lateral defense alliance with our friend
and ally, Japan, which has moved Guam into a unique and high-
level focus inside the Pentagon.
Secretary Rumsfeld reminded me on several occasions that
the U.S. Military goes where we are wanted. Such sentiment is
particularly relevant to the buildup for Guam. I have
consistently maintained throughout my public career that the
partnership we enjoy here on Guam with the U.S. Military is
beneficial to us overall, and represents a key area which
through mutual respect and cooperation we have and continued to
grow our economy. My belief in this regard has only grown
stronger over the years and been re-enforced with the
opportunities presented before us with this buildup.
Although the size of the military buildup is substantial in
terms of investment needed for infrastructure, the total number
of military personnel that will be moving to our island is
roughly the same as the total number of military personnel that
were stationed on Guam during the 1980s and early 1990s. In
fact, the 3rd Marine Expeditionary Force realignment is a
homecoming for the same division of Marines that liberated our
island from enemy occupation 63 years ago. The Marines are
returning to a community that respect and appreciate their
selfless dedication in heroism.
Many of our own sons and daughters have served and continue
to serve proudly and honorably in the United States Armed
Forces today. We welcome this move, just as we would expect
other communities to welcome our sons and daughters on the
bases in their communities.
The United States Marine Corps and the Navy have had a long
and storied history on Guam. It is this history that bounds our
island community and our partners in the military together. The
military buildup signals the beginning of a new chapter in the
partnership between the residents of Guam and the United States
Armed Services.
Beyond the historic symbolism of the move, the military
buildup offers our community and the Federal Government a
unique opportunity to coordinate local and Federal resources to
improve the overall infrastructure on our island, which is key
to our economic growth and achieving an overall better quality
of life for our families and military service personnel on
Guam. Moreover, the defense alliance and agreement with the
government of Japan will bring about increased military
cooperation and training exercises on Guam.
Guam welcomes these exercises that further strengthen the
strategic partnership. Operation Valiant Shield is evident of
the growing interest in hosting multilateral training exercises
from Guam. These exercises translate into security for our
island in the region, and into jobs and earnings for our
businesses that will increase government revenues and enable
infrastructure improvements.
Moreover, even before the buildup begins in earnest, we are
seeing the early fruits of economic prosperity. Media reports
have shown that property values have risen by 300 percent over
the past year. Rising property values means equity for the
residents of Guam, and that translates into wealth. A well-
planned, integrated and coordinated master plan for the buildup
will ensure that all of our residents can benefit from future
economic opportunities that will improve their quality of life
without sacrificing our heritage and culture.
The buildup also offers other areas for improving our
quality of life. The increased military presence stands to
bring about better veterans services. Two weeks ago, the
Secretary of Veterans Affairs announced the approval of a $5.4
million clinic to provide veterans on Guam with access to a
modern healthcare facility. This announcement is indicative of
new services on the way for our veterans.
Also, we can expect that there will be increased medical
expertise at the Naval Hospital with growth in our island's
population. Residents of Guam will benefit from the increase of
medical expertise on the island. I encourage the Department of
Defense and the Government of Guam to review areas for
increased cooperation between the Naval Hospital and GMH in
light of the buildup. These opportunities will only come if
local, Federal, and military leaders cooperate and integrate
their planning.
The military buildup on Guam has been described as
difficult, unique, impossible, and doomed for failure. Well, I
would beg to differ with such characterizations. Instead, I
believe the military buildup presents our community with
opportunities that we would be foolish to ignore. Yet, we would
also be foolish to underestimate the challenges it presents.
There is no question in my mind that we face many
challenges, but I think all of us would prefer to be facing
these challenges that are associated with growth rather than
facing challenges associated with decline. We must be honest
with ourselves and each other in this process. I prefer to be
optimistic, but realistic. We must keep things in perspective
if we are to succeed.
The announcements and initial planning to date have
generated senses of elation, anger, anxiety, but some view the
buildup from a broad and balanced perspective. Others are
concerned with certain angles and elements given their roles
and standing in the community, past experiences or education,
and professional background.
This hearing, this morning, and the dialogue that will be
continued after today, is meant to capture a wide range of
views and concerns. Three panels have been organized today with
witnesses representing a broad cross-section of our community.
This hearing marks the beginning of our dialogue and will
lay the foundation for a Congressional record on the buildup
with focus on the civilian community and the concerns of our
people.
As Senator Pangelinan has stated, this buildup is an
unprecedented move that we cannot afford to have addressed in a
precedented way. It is an opportunity for the Federal
Government and the Government of Guam to develop together
innovative solutions to the challenges it presents.
Since the establishment of a Joint Chiefs of Staff, the
Department of Defense has been moving toward the creation of a
truly joint or total force concept for all military forces. The
Department of Defense has, with the Guam buildup, the unique
opportunity to trail blaze a new era in the management of
complex projects and to further its jointness approach beyond
simply its own services.
At the end of the day, the buildup of forces on Guam should
be held as an example of how interagency cooperation and
integration with civilian authorities can lead to successful
outcomes. Cooperation and integration are critical to ensuring
that the challenges surrounding the buildup can be overcome
with innovative and forward-thinking solutions. A jointness
approach should be adopted by the Department of Defense and the
Government of Guam.
Allow me to touch upon a few of the challenges that I know
will be discussed by our witnesses today. One challenge that
has been identified is the availability of sufficient human
capital for projects. The Fiscal Year 2008 budget should
contain up to $345 million in military construction alone. To
put that figure in perspective, the Department of Defense
estimates that the on-island capacity for all construction is
about $400 million. By Fiscal Year 2010, we are told that
initial plans call for an increase in military construction to
approach $2.5 billion for this buildup to work, a sevenfold
increase over Fiscal Year 2008 funding.
We will have to continue working together to ensure that
our workforce currently on Guam is provided with adequate
training opportunities in order to take advantage of skilled
labored jobs that become available as a result of the buildup.
That is why Chairwoman Christensen and I visited GCC last week.
We need to exhaust this option before we earnestly discuss
access to human capital beyond our borders.
Another challenge that has been raised is the capacity of
our port. The port has to prepare for the increase in shipping
traffic, possibly as much as a 70 percent increase within the
next four years. I have consulted with Governor Camacho and
Federal officials about the port, and I am confident that the
port will be able to adapt and make the necessary improvements
that we need if cooperation begins today. Our community has to
find consensus on the issue of port expansion, and policy
makers have to really consider what the future of the port will
be.
Finally, while the buildup will provide a better quality of
life and economic opportunity for residents of Guam, we cannot
sacrifice the beauty and the ecological integrity of our
island. Earlier this year, the Department of Defense commenced
scoping meetings for the Environmental Impact Statement or the
EIS. As General Bice will testify, the next step is to have the
military do a more comprehensive analysis of the environmental
impacts the buildup will bring for our island. The EIS may take
2 to 3 years to complete, and I assure you that wait will be
worth it. A thorough analysis of all opportunities for
improving infrastructure must be looked at and addressed in the
final EIS document.
In keeping with our promise to be innovative and forward-
thinking, I hope that an EIS and a master plan will take into
account opportunities for development of green infrastructure.
In all cases where it is feasible we should be trying to build
environmentally friendly and sensitive projects. I support the
process and the approach that the Department of Defense has
adopted in this early stage of planning.
A single, comprehensive EIS for the buildup best ensures
that our community has the opportunity to comment on all
aspects of the planning, and that it compels the Department of
Defense to render a balanced assessment of the impacts for our
community, our environment. I urge the Department of Defense to
continue strong public dialogue in this process, and to agree
to reasonably mitigation in the event of adverse impacts.
A project of this magnitude does not come without
considerable challenges. However, I believe that our challenges
will lead to progress. I'm optimistic that we can overcome
these challenges, but I recognize that our goals must remain
realistic as we move forward. The people of Guam have faced
countless challenges over the course of our history, and have
overcome these challenges time and time again.
Our hearing today marks the beginning of an oversight role
in Congress on the military buildup. It was important to hold
our first such oversight hearing right here in Guam so that all
of our citizens can listen to the concerns, the ideas, and the
solutions proposed by various local and Federal leaders
involved with the military buildup.
Federal officials should be honest and direct in responding
to Congress, and to the Government of Guam on this project. I
have confidence in the Federal leaders that we will hear from
today, and I have confidence in the talents and the potential
of our community.
Our role in Congress will continue to be to hold officials
accountable in this process, and to ensure that all levels of
government and civilian private sector leaders are working
together for the benefit of all our residents. I am here today
as a representative of all the people of Guam, and I am willing
and ready to do my part to assist our leaders in working with
the Federal Government.
I want to commend Deputy Assistant Secretary David Cohen in
cooperation with General David Bice, and the Joint Guam Program
Office for beginning an interagency dialogue with Federal
partners in the Government of Guam.
It is time to get serious about the planning. There will be
no blank check written to the Department of Defense or the
Government of Guam. There is no magic wand that either the
Federal Government or the Government of Guam can wave to solve
these challenges. Success will be brought by planning and
prioritization.
We must fully take advantage of and utilize existing
Federal programs and the mechanisms to meet identified needs.
This is where partnership becomes the critical link to making
this buildup work for all of us, for all the people of Guam,
the military, the Federal Government.
Again, I thank Chairwoman Christensen for holding this
hearing, and I look forward to all the witnesses testimony.
Thank you.
Mrs. Christensen. Thank you, Madam Chairwoman Bordallo.
[The prepared statement of Ms. Bordallo follows:]
Statement of The Honorable Madeleine Z. Bordallo,
a Delegate in Congress from Guam
Madam Chairwoman, thank you for agreeing to hold this very
important hearing today on Guam about the impending military build-up
for our island. As you know, this hearing is very important to us--to
my constituents--as it is the first Congressional hearing to be held on
Guam in 24 years. It has been my firm belief that the military build-up
on Guam will offer our community a unique opportunity to grow our
economy and to improve our public works and infrastructure.
The 2005 Integrated Global Presence and Basing Strategy (IGPBS)
from the Overseas Basing Commission, which was chartered by Congress,
laid the groundwork for the rebasing of roughly 8,000 Marines from the
3rd Marine Expeditionary Force to Guam from Okinawa, Japan. The
Overseas Basing Commission report reaffirmed the strategic importance
of Guam in the region. By placing United States Armed Forces on Guam it
affords the Department of Defense the flexibility and freedom of action
to respond to regional threats and crises, while providing our island
and our people additional security in the face of rising global
threats.
This very point of the strategic value of Guam has been underscored
in Washington before Congress by many defense analysts and leaders,
including our immediate previous Secretary of Defense, Donald Rumsfeld,
who traveled to Guam in 2003, to review for himself the opportunities
for and value of placing additional assets and personnel on our
military bases. The strategic value of Guam was also emphasized by
Governor Camacho, the Guam Chamber of Commerce, and myself, before the
Base Closure and Realignment (BRAC) Commission in 2005. And the
recognition of the strategic value of Guam is a key reason why we now
see renewed interest and investment from DoD in our military bases. I
continue to believe and maintain that the BRAC closures in the 1990s
were a mistake, including the closure of the Ship Repair Facility
(SRF), the Public Works Center (PWC), the redeployment of ships and
aircraft that were based here, and the downsizing of the Naval Computer
and Telecommunications Area Master Station Pacific (NCTAMS).
The Secretary of State, Dr. Condoleezza Rice, has declared 2007 to
be the ``Year of the Pacific.'' The United States is increasingly
focusing on efforts in our region to increase stability, good
governance and economic development through closer political, economic
and cultural ties to our neighbors. Our island is central to these
efforts.
All of this has laid a foundation for a renewed bilateral defense
alliance with our friend and ally, Japan, which has moved Guam into a
unique and high-level focus inside the Pentagon.
Secretary Rumsfeld reminded me on several occasions that the U.S.
military ``goes where we are wanted.'' Such sentiment is particularly
relevant to the build-up for Guam. I have consistently maintained
throughout my public career that the partnership we enjoy here on Guam
with the U.S. military is beneficial to us overall and represents a key
area, which through mutual respect and cooperation, we have and can
continue to grow our economy. My belief in this regard has only grown
stronger over the years and been reinforced with the opportunities
presented before us with this build-up.
Although the size of the military build-up is substantial in terms
of investment needed for infrastructure, the total number of military
personnel that will be moving to our island is roughly the same as the
total numbers of military personnel that were stationed on Guam during
the 1980s and early 1990s. In fact, the realignment of the 3rd Marine
Expeditionary Force is a homecoming for the same division of Marines
that liberated our island from enemy occupation 63 years ago. The
Marines are returning to a community that respect and appreciate their
selfless dedication and heroism. Many of our own sons and daughters
have served and continue to serve proudly and honorably in the United
States Armed Forces today. We welcome this move just as we would expect
other communities to welcome our sons and daughters on the bases in
their communities.
The United States Marine Corps and the Navy have had a long and
storied history on Guam. It is this history that bonds our island
community and our partners in the military together. The military
build-up signals the beginning of a new chapter in the partnership
between the residents of Guam and the United States Armed Forces.
Beyond the historic symbolism of the move, the military build-up
offers both our community and the federal government a unique
opportunity to coordinate local and federal resources to improve the
overall infrastructure on our island--which is key to our economic
growth and achieving an overall better quality of life for our families
and military service personnel on Guam. Moreover, the defense alliance
and agreement with the Government of Japan will bring about increased
military cooperation and training exercises on Guam. Guam welcomes
these exercises that further strengthen this strategic partnership.
Operation Valiant Shield is evidence of the growing interest in hosting
multilateral training exercises from Guam. These exercises translate
into security for our island and the region, and into jobs and earnings
for our businesses, that will increase government revenues and enable
infrastructure improvements.
Moreover, even before the build-up begins in earnest we are seeing
the early fruits of economic prosperity. Media reports have shown that
property values have risen by 300% over the past year. Rising property
values mean equity for the residents of Guam--and that translates into
wealth. A well planned, integrated and coordinated master plan for the
build-up will ensure that all of our residents can benefit from future
economic opportunities that will improve their quality of life without
sacrificing our heritage and culture.
The build-up also offers other areas for improving our quality of
life. The increased military presence stands to bring about better
veterans' services. Two weeks ago, the Secretary of Veterans' Affairs
announced the approval of a $5.4 million Community Based Outpatient
Clinic (CBOC) to provide veterans on Guam with access to a modern
health care facility. This announcement is indicative of new services
on the way for our veterans. Also, we can expect that there will be
increased medical expertise at the Naval Hospital with growth in our
island's population. Residents of Guam will benefit from the increase
of medical expertise on-island. I encourage the Department of Defense
and the Government to Guam to review areas for increased cooperation
between Naval Hospital and Guam Memorial Hospital (GMH) in light of the
build-up.
These opportunities will only come to fruition if local, federal
and military leaders cooperate and integrate their planning. The
military build-up on Guam has been described as difficult, unique,
impossible, and doomed for failure. I would beg to differ with such
characterizations. Instead, I believe the military build-up presents
our community with opportunities we would be foolish to ignore. Yet, we
would also be foolish to underestimate the challenges it presents.
There is no question that we face many challenges, but I think all of
us would prefer to be facing these challenges that are associated with
growth, rather than facing challenges associated with decline. We must
be honest with ourselves and each other in this process. I prefer to be
optimistic, but realistic. We must keep things in perspective if we are
to succeed.
The announcements and initial planning to date have generated
senses of elation, anger, anxiety, and trepidation. Some view the
build-up from a broad and balanced perspective; others are concerned
with certain angles and elements given their roles and standing in the
community, past experiences, or education and professional background.
This hearing, and the dialogue that will be continued after today,
is meant to capture a wide range of views and concerns. Three panels
have been organized today with witnesses representing a broad cross-
section of our community. This hearing marks the beginning of our
dialogue, and will lay the foundation for a Congressional record on the
build-up with focus on the civilian community and the concerns of our
people.
As Senator Pangelinan has stated, this build-up is an unprecedented
move that we cannot afford to have addressed in a precedented way. It
is an opportunity for the federal government and the Government of Guam
to develop together innovative solutions to the challenges it presents.
Since the establishment of a Joint Chiefs of Staff (JCS), the
Department of Defense has been moving towards the creation of a truly
``joint'' or ``Total Force'' concept for all military forces. The
Department of Defense has--with the Guam build-up--the unique
opportunity to trail blaze a new era in the management of complex
projects and to further its ``jointness'' approach beyond simply its
own services. At the end of the day, the build-up of forces on Guam
should be held as the example of how interagency cooperation and
integration with civilian authorities can lead to successful outcomes.
Cooperation and integration are critical to ensuring that the
challenges surrounding the build-up can be overcome with innovative and
forward-thinking solutions. A ``jointness'' approach should be adopted
by the Department of Defense with the Government of Guam.
Allow me to touch upon a few of the challenges that I know will be
discussed by our witnesses today.
One challenge that has been identified is availability of
sufficient human capital for projects. The Fiscal Year 2008 budget
could contain up to $345 million in military construction alone. To put
that figure in perspective, the Department of Defense estimates that
the on-island capacity for all construction is about $400 million. By
Fiscal Year 2010, we are told initial plans call for an increase in
military construction to approach $2.5 billion for this build-up to
work--a seven fold increase over Fiscal Year 2008 funding.
We will have to continue working together to ensure that our
workforce currently on Guam is provided with adequate training
opportunities in order to take advantage of skilled labor jobs that
become available as a result of the build-up. That is why Chairwoman
Christensen and I visited Guam Community College (GCC) last week. We
need to exhaust this option before we earnestly discuss access to human
capital beyond our borders.
Another challenge that has been raised is the capacity of our port.
The port has to prepare for the increase in shipping traffic, possibly
as much as a 70% increase within four years. I have consulted with
Governor Camacho and federal officials about the port, and I am
confident that the port will be able to adapt and make the necessary
improvements that we need if cooperation begins today. Our community
has to find consensus on the issue of port expansion and policy makers
have to really consider what the future of the port will be.
Finally, while the build-up will provide a better quality of life
and economic opportunity for residents of Guam we cannot sacrifice the
beauty and ecological integrity of our island. Earlier this year the
Department of Defense commenced scoping meetings for the Environmental
Impact Statement or the EIS. As General Bice will testify, the next
step is to have the military do a more comprehensive analysis of the
environmental impacts that the build-up will bring for our island. The
EIS may take two to three years to complete and I assure you that the
wait will be worth it. A thorough analysis of all opportunities for
improving infrastructure must be looked at and addressed in the final
EIS document. In keeping with our promise to be innovative and forward-
thinking, I hope that an EIS and master plan will take into account
opportunities for development of ``green'' infrastructure. In all cases
where it is feasible, we should be trying to build environmentally
friendly and sensitive projects. I support the process and approach
that the Department of Defense has adopted in this early stage of
planning. A single, comprehensive EIS for the build-up best ensures
that our community has the opportunity to comment on all aspects of the
planning, and that it compels the Department of Defense to render a
balanced assessment of the impacts for our community and our
environment. I urge the Department of Defense to continue strong public
dialogue in this process, and to agree to reasonable compensatory
mitigation in the event of adverse impacts.
A project of this magnitude does not come without its share of
considerable challenges. However, I believe that our challenges will
lead to progress. I am optimistic that we can overcome these
challenges, but I recognize that our goals must remain realistic as we
move forward. The people of Guam have faced countless challenges over
the course of history and have overcome these challenges time and time
again.
Our hearing today marks the beginning of our oversight role in
Congress on the military build-up. It was important to hold our first
such oversight hearing right here on Guam so that all of our citizens
can listen to the concerns, ideas and solutions proposed by various
local and federal leaders involved with the military build-up. Federal
officials should be honest and direct in responding to Congress and to
the Government of Guam on this project. I have confidence in the
federal leaders that we will hear from today, and I have confidence in
the talents and potential of our own community. Our role in Congress
will continue to be to hold officials accountable in this process and
to ensure that all levels of government and civilian private-sector
leaders are working together for the betterment of all residents. I am
here as the representative of all the people of Guam, and I am willing
and ready to do my part to assist our leaders in working with the
federal government. I want to commend Deputy Assistant Secretary David
Cohen, in cooperation with General David Bice and the Joint Guam
Program Office, for beginning an interagency dialogue with federal
partners and the Government of Guam.
It is time to get serious about the planning. There will be no
blank check written to the Department of Defense or the Government of
Guam. There is no magic wand that either the federal government or the
Government of Guam can wave to solve these challenges. Success will be
brought by planning and prioritization. We must fully take advantage of
and utilize existing federal programs and mechanisms to meet identified
needs. This is where partnership becomes the critical link to making
this build-up work for all of us.
Again, I thank Chairwoman Christensen for holding this hearing and
I look forward to all of the witnesses' testimony.
______
Mrs. Christensen. If there are no objections, I'd now like
to submit, for the official record, the written testimony of
the following individuals: John and Cherry Aguon, Carlotta Leon
Guerrero, The Honorable Judith Paulette Guthertz of the 29th
Guam Legislature, Wayne Nastri, Regional Administrator for
Region 9 of the U.S. Environmental Protection Agency, Michael
D. Setzer II, Abraham Wong, Division Administrator, Hawaii
Division of the Federal Highway Administration. And hearing no
objections, so ordered.
[NOTE: Statements submitted for the record by the following
individuals have been retained in the Committee's official files:]
John and Cherry Aguon
Antonio Artero, Realtor/ Submariner-U.S. Navy (Ret.)
Deborah C. Belanger
Senator Frank F. Blas Jr., Legislature of Guam
Yvonne M.G. Blas
Bob Bureau
Senator Edward J.B. Calvo, Vice Speaker, 29th Legislature
of Guam
Robert N. Celestial Sgt, President, ``Pacific Association
For Radiation Survivors'' (PARS)
Manuel Cruz, Acting Executive Director of the Guam
Development Disabilities Council (GDDC)
Arnold Davis, Major, USAF (Ret)
Felixberto R. Dungca Jr.
Florence Dungca
George C. Eustaquio
Monaeka Flores
Fuetsan Famaloa'an
Carlotta Leon Guerrero
Judith Paulette Guthertz, 29th Legislature of Guam
Cole Herndon
Dr. Thomas J. Iverson, Professor of Economics, University
of Guam
Senator Frank T. Ishizaki, 29th Guam Legislature
Jesse Anderson Lujan, 29th Guam Legislature, Chairman of
Committee on Aviation, Federal Affairs, Labor, Housing, Banking and
Insurance
Saina Ma'ase
Greg S. Massey, Administrator, Alien Labor Processing and
Certification Division, Guam Department of Labor
Peter C. Mayer, Ph.D.
Prudencio F. Meno
Wayne Nastri, Regional Administrator, U.S. Environmental
Protection Agency
Mary A. Y. Okada, President, Guam Community College (on
behalf of)
John A.B. Pangelinan
Debbie Quinata
Matt Rector, President, AFT Local 1581, AFL-CIO
Senator Rory J. Respicio, 29th Legislature of Guam
Michael D. Setzer
Peter R. Sgro, Chairman, Guam Hospital Development Forum
Dr. David L.G. Shimizu, 29th Guam Legislature
Berrie Straatman
Kenneth T. Tagawa, General Manager, Port Authority of
Guam
John Ray Taitano, President, Veterans Advisory Council
Albert S. Topasna, Investigator
Mary Torre, President, Guam Hotel and Restaurant
Association
Charles H. Troutman
David B. Tydingco, Chairman, Guam Visitors Bureau Board
of Directors
Antonio R. Unpingco, 29th Guam Legislature
Richard H.J. Wyttenbach-Santos
Alfred Ysrael
______
Mrs. Christensen. I would now like to recognize the first
panel of witnesses, The Honorable David B. Cohen, Deputy
Assistant Secretary for Insular Affairs at the U.S. Department
of the Interior; Mr. David F. Bice, Executive Director of the
Joint Guam Program Office; and Mr. Kenneth Lujan, Administrator
for Guam and the CNMI for the U.S. Small Business
Administration.
The Chair now recognizes Deputy Assistant Secretary Cohen
to testify for five minutes. The timing lights for all of the
witnesses is on the table and will indicate when your time has
concluded. And please remember that your full statements will
be admitted into the record.
STATEMENT OF DAVID B. COHEN, DEPUTY ASSISTANT SECRETARY FOR
INSULAR AFFAIRS, U.S. DEPARTMENT OF THE INTERIOR
Mr. Cohen. Hafa Adai, Madam Chairwoman and Madam
Congressman. It is a pleasure to appear before you today.
As you know, the Department of Defense is planning to
transfer approximately 8,000 Marines and 9,000 family members
from Okinawa to Guam at the cost of more than $10 billion.
Impacts for Guam will be significant.
Secretary Dirk Kempthorne and the Department of the
Interior have a great interest in these developments. The
Secretary is responsible for generally administering the
Federal Government's relationship with the territories. The
Secretary also chairs the Interagency Group on Insular Areas,
or the IGIA, which coordinates Federal policy with respect to
the U.S. territories. The Secretary of the Interior has offered
the services of the IGIA to the Department of Defense to
coordinate Federal agency participation in this project.
The IGIA has established a working group on Guam military
expansion to address issues related to the military buildup.
The working group supports the efforts of General Bice and
DOD's Joint Guam Program Office, and follows its lead, and
includes in addition to DOD and Interior, the Departments of
State, Agriculture, Health and Human Services, Labor, Justice,
Transportation, Housing and Urban Development, Education,
Veterans Affairs, as well as the Small Business Administration,
the Office of Management and Budget, the U.S. Postal Service
and others. We are working closely with the Government of Guam,
both the Governor's administration and the Legislature, whom
the Secretary met with when he was here, Guam's Delegate to the
U.S. House of Representatives, Congresswoman Bordallo, members
of the community, and will be working closely with the leaders
of other island communities as well.
On August 2nd, the IGIA hosted a meeting of numerous
Federal agencies regarding the Guam military buildup. Besides
the general meeting, five specialty workshops were convened to
discuss policy and resource requirements relating to (1) labor
and workforce issues, (2) Guam civilian infrastructure needs,
(3) health and human services requirements, (4) the
environment, and (5) socioeconomic issues.
At this point, we are making a comprehensive effort to
identify issues that will need to be addressed in order for the
buildup to proceed smoothly, and are tasking agencies with the
responsibility to address issues that fall within their
respective domains.
It is anticipated that this project will require 12,000 to
15,000 construction workers. This large requirement for
construction workers can be satisfied from pools of U.S.
citizens located in Guam, the CNMI, other territories in the 50
states, Freely Associated State citizens, and foreign
nationals, mainly from nearby countries.
Currently, the number of journeyman construction workers
that are labor eligible on Guam is limited. Journeyman workers
from Asia can be relocated for work on Guam, but they must
acquire an H-2B visa. Nationally, only 66,000 H-2B visas are
issued annually. The Guam requirement for construction workers
alone is approximately 20 percent of this nationwide cap.
Attracting labor eligible journeyman workers from the 50 states
may be quite a challenge, given that the construction industry
has been so fully engaged in Hawaii and in parts of the Western
U.S. mainland.
There are pools of underemployed workers on Guam, in the
CNMI, and in the Freely Associated States, who can be trained,
placed in apprenticeship programs, fill in behind journeyman
workers for a time, and later become journeymen themselves. But
we need sufficient planning and lead time to make this scenario
a reality.
We are coordinating our efforts with the U.S. Department of
Labor to establish training and apprenticeship programs in
Hawaii, Guam, the CNMI, and the Freely Associated States. The
job opportunities created by such programs will not only
benefit the military on Guam, but will benefit our island
communities in the Pacific.
After the primary facilities are constructed, the new
infrastructure on Guam should provide the people of Guam with
good job opportunities over the long term. The Federal
Government will need to partner with the Government of Guam and
with the private sector to ensure that Guam's workforce will be
ready to take advantage of opportunities in information
technology, management, and other fields, as well as a whole
range of opportunities that will result from an expanding
economy.
One of the challenges that we will face will be to ensure
that Guam civilian infrastructure can keep pace with the
demands of the buildup and the results of the buildup. It will
take creative collaboration among the Federal Government, the
Government of Guam, the community in Guam and the private
sector to address this challenge.
Throughout Secretary Kempthorne's recent trip to the U.S.-
affiliated Pacific, accompanied by Assistant Secretary of the
Navy B.J. Penn, the Secretary stressed the need to ensure that
Guam's military buildup is good for Guam and good for the
neighborhood. If the project is planned and implemented
properly, Secretary Kempthorne's vision will indeed come to
pass. And in fact, it is not only Secretary Kempthorne's
vision, but it is a vision that's constantly resided by the
Department of Defense, Assistant Secretary Penn, and General
Bice as well.
The construction of military facilities, and accompanying
improvements to civilian infrastructure, will create job
opportunities for the people of Guam, with opportunities left
over for the people of the CNMI, other territories and the
Freely Associated States. The resulting infrastructure will
result in the opportunity for good long-term jobs. The increase
in Guam's population, by an estimated 35,000 to 40,000 people,
or over 20 percent, will create opportunities. All of these new
people will, after all, need places to live, places to shop,
places to dine, products and services to buy, roads to travel
on, utilities to serve them. All of these needs will give rise
to business opportunities and job opportunities. These people
will also need places to visit for a change of pace, and many
nearby island communities will be waiting to fill that need.
Saipan, Tinian, Rota, Palau, Yap, Chuuk, Pohnpei, Kosrae, the
Marshall Islands, and even American Samoa, all offer stunning
natural beauty and a slower pace than they'll find in Guam.
There will be tourism development opportunities in these
places.
In order for us to realize this positive scenario, we will
have to do our homework. We will have to identify critical path
items and potential bottlenecks, and find ways to ensure that
we address our challenges in a timely fashion. We don't have
all of the answers yet, but we have begun in earnest the task
of identifying issues and developing solutions in partnership
with the community in Guam. This effort will take a great deal
of collaboration among the Federal Government, the Government
of Guam, the people of Guam, the private sector and peoples of
the surrounding islands. As the leader of the Interagency Group
on Insular Areas, the Department of the Interior is prepared to
do its part to make this massive endeavor a success. Si Yu'us
Ma'ase.
Mrs. Christensen. Thank you, Deputy Assistant Secretary.
[The prepared statement of Mr. Cohen follows:]
Statement of David B. Cohen, Deputy Assistant Secretary
for Insular Affairs, U.S. Department of the Interior
Madam Chairwoman and members of the panel, it is a pleasure to
appear before you today to discuss the U.S. military buildup on Guam
and the challenges facing the military and civilian communities.
As you know, the Department of Defense is planning to transfer
approximately 8,000 Marines and 9,000 family members from Okinawa to
Guam at a cost of more than $10 billion. This cost will be shared
between the U.S. Government and the Government of Japan. As General
David Bice notes in his statement, impacts for the U.S. territory of
Guam will be significant.
Secretary Dirk Kempthorne and the Department of the Interior have a
great interest in these developments. The Secretary has two
responsibilities that connect the Department to the realignment of
Pacific forces. First, the Secretary is responsible for generally
administering the Federal Government's relationship with the United
States territories, and administers the financial assistance that the
U.S. provides to the Freely Associated States (FAS) under the Compacts
of Free Association. Second, the Secretary chairs the Interagency Group
on Insular Areas, which is tasked with coordinating Federal policy with
respect to the U.S. territories.
Interagency Group on Insular Areas
The Interagency Group on Insular Areas (IGIA) was re-established by
President Bush on May 8, 2003 when he signed Executive Order No. 13299.
The President designated the Secretary of the Interior as the presiding
officer of the IGIA, and the Secretary of the Interior has offered the
services of the IGIA to the Department of Defense to aid in
coordinating Federal agency participation in this important base
realignment project. In this regard, the IGIA has established a Working
Group on Guam Military Expansion to address issues related to the
military buildup. The Working Group includes the Departments of State,
Agriculture, Health and Human Services, Labor, Justice, Transportation,
Housing and Urban Development, Education, Veterans Affairs, as well as
the Navy, the Small Business Administration, the Office of Management
and Budget, and others. We are working closely with the Government of
Guam and Guam's Delegate to the U.S. House of Representatives, and will
be working closely with the leaders of other island communities as
well.
On behalf of the IGIA, I have met several times with General Bice,
most recently on August 2, when the IGIA hosted a meeting of numerous
Federal agencies regarding the Guam military buildup. Besides the
general meeting, five specialty workshops were convened to discuss
policy and resource requirements relating to (1) labor and workforce
issues, (2) Guam civilian infrastructure needs, (3) health and human
services requirements, (4) the environment, and (5) socio-economic
issues.
This is the beginning of a massive effort. The overall task is
challenging, not only for the Department of Defense, but for
contributing Federal agencies and, most certainly, for Guam. At this
point, we are making a comprehensive effort to identify issues that we
will need to address in order for the buildup to proceed smoothly, and
are tasking agencies with the responsibility to address issues that
fall within their respective domains.
Labor Needs
Facilities must be constructed for the 8,000 Marines and 9,000
family members. It is anticipated that such construction will require
12,000 to 15,000 construction workers, with 75 percent of such workers
coming from outside of Guam. This large requirement for construction
workers can be satisfied from pools of United States citizens located
in Guam, the Commonwealth of the Northern Mariana Islands (``CNMI''),
other territories, and the 50 states; labor-eligible FAS citizens; and
foreign nationals, mainly from nearby countries.
Currently, the number of journeyman construction workers that are
labor-eligible on Guam (U.S. and FAS citizens) is limited--both in
absolute numbers for the region and because of distance from the U.S.
mainland. Journeyman workers from Asia can be located for work on Guam,
but they must acquire an H-2B visa, which allows the importation of
temporary workers for temporary jobs. Nationally only 66,000 H-2B visas
are issued annually. The Guam requirement for construction workers
alone is approximately 20 percent of this nationwide cap. As we plan
for construction, we must consider pay and transportation incentives
for attracting labor-eligible journeyman workers from territories, the
50 states and the FAS. This may be quite a challenge, given that the
construction industry has been so fully engaged in Hawaii and in parts
of the Western U.S. mainland.
Additionally, there are pools of underemployed workers on Guam, in
the CNMI, and in the FAS, who can be trained, placed in apprenticeship
programs, fill-in behind journeyman workers for a time, and later
become journeymen themselves. But we need sufficient planning and lead
time to make this scenario a reality.
We are coordinating our efforts with the U.S. Department of Labor
to establish training and apprenticeship programs in Hawaii, Guam, the
CNMI, and the FAS. The job opportunities created by such programs will
not only benefit the military on Guam, but will benefit our island
communities in the Pacific region. In the short-term, the training
envisioned will provide immediate economic stimulus for the U.S.
Pacific region; in the long-term it will provide valuable skills and
higher incomes, which today are in short supply in most of our U.S.-
affiliated islands.
After the primary facilities are constructed, the new
infrastructure on Guam should provide the people of Guam with good job
opportunities over the long term. The Federal Government will need to
partner with the Government of Guam and with the private sector to
ensure that Guam's workforce will be ready to take advantage of
opportunities in information technology, management, and other fields,
as well as a whole range of opportunities that will result from an
expanding economy.
Financing of Improved Civilian Facilities
One of the challenges that we will face will be to ensure that
Guam's civilian infrastructure can keep pace with the demands of the
buildup and the results of the buildup. The buildup itself will strain
the capacity limitations of Guam's port facilities. The population
increase resulting from the buildup will challenge the capabilities of
Guam's civilian infrastructure, which is inadequate as it is to address
the needs of Guam's current population. It will take creative
collaboration among the Federal Government, the Government of Guam and
the private sector to address these challenges.
Making Sure the Buildup is ``Good for Guam; Good for the Neighborhood''
Throughout Secretary Kempthorne's recent trip through the U.S.-
affiliated Pacific, he stressed the need to ensure that Guam's military
buildup is ``good for Guam and good for the neighborhood.'' Indeed, if
the project is planned and implemented properly, Secretary Kempthorne's
vision will indeed come to pass. The construction of military
facilities, and accompanying improvements to civilian infrastructure,
will create job opportunities for the people of Guam, with
opportunities left over for the people of the CNMI, other territories,
the Freely Associated States and other Pacific nations. The resulting
infrastructure will result in the opportunity for good, long-term jobs.
The increase in Guam's population, by an estimated 35,000 to 40,000
people or over 20 percent including military and family members,
construction workers, and other public and private sector service
providers, will create opportunities. All of these new people will,
after all, need places to live, places to shop, places to dine,
products and services to buy, roads to travel on, utilities to serve
them. All of these needs will give rise to business opportunities and
job opportunities. These people will also need places to visit for a
change of pace, and many nearby island communities will be waiting to
fill that need. Saipan, Tinian, Rota, Palau, Yap, Chuuk, Pohnpei,
Kosrae, the Marshall Islands and even farther away American Samoa all
offer stunning natural beauty and a slower pace than they will find on
Guam. There will be tourism development opportunities in all of these
places.
In order for us to realize this positive scenario, we will have to
do our homework. We will have to identify critical path items and
potential bottlenecks, and find ways to ensure that we address our
challenges in a timely fashion. We don't have all of the answers yet,
but we have begun in earnest the task of identifying issues and
developing solutions. This effort will take a great deal of
collaboration among the Federal Government, the Government of Guam, the
people of Guam, the private sector and peoples of the surrounding
islands. As the leader of the Interagency Group on Insular Areas, the
Department of the Interior is prepared to do its part to make this
massive endeavor a success.
Thank you.
______
Mrs. Christensen. And the Chair now recognizes General Bice
for his testimony.
STATEMENT OF GENERAL DAVID F. BICE, USMC,
EXECUTIVE DIRECTOR, JOINT GUAM OFFICE
General Bice. Thank you, Madam Chair and Congresswoman
Bordallo. This a great opportunity to lay out the Department of
Defense plans for the U.S. Military buildup on Guam and address
the challenges facing the community.
On the 1st of May 2006, the United States and Japan agreed
to the realignment of forces on Japan and in the Pacific. One
of the several initiatives concerns the move of approximately
8,000 3rd Marine Expeditionary Force personnel and
approximately 9,000 family members from Okinawa to Guam. The
desired completion date for the relocation is 2014. The total
estimated development cost for the relocation of the Marine
units to Guam is about $10.27 billion. The Government of Japan
will provide up to a total of $6.09 billion, with the remaining
$4.18 billion provided by the U.S. Government, as well as any
additional cost.
A Guam Joint Military Master Plan is currently being
developed. Land-use alternatives are expected to be developed
by November 2007, with a planning-level master plan to be
completed by July 2008.
An Environmental Impact Statement is also in development.
The notice of intent was published in March 2007, and public
scoping meetings held on Guam, Tinian, and Saipan in April
2007. The Final Environmental Impact Statement is scheduled for
completion in October 2009, with the Record of Decision
expected to be signed by the Assistant Secretary of the Navy
for Installations Environment by January 2010.
Guam and the surrounding islands' economies will be
impacted through the multi-billion dollar construction projects
and improvements to the islands' utility services that support
the military forces. The addition of approximately 20,000 U.S.
service members and their families will add considerably to the
islands' economies and tax base through increased demand for
retail goods and services, airline transportation, housing,
entertainment, and consumer spending. The buildup will attract
a wide range of individuals from the private sector who engage
in professional services, such as medical, education, legal,
engineering, human services and others, which will impact the
overall quality of life to the island residents.
As Secretary Cohen stated, it is estimated that between
12,000 and 15,000 workers will be needed on Guam to construct
the necessary operational, training, housing, and other support
facilities. We are working closely with other Federal
department agencies and the Government of Guam to create
training opportunities for the residents of Guam, CNMI, and
Freely Associated States to acquire new skills to be ready for
these increased job opportunities. Additionally, we will work
with these department agencies to coordinate medical care,
support facilities, homeland security impacts, and human
services for the arriving U.S. and foreign workers.
We are concerned about the strain on Guam's safety and
security services, the impact on small businesses and local job
opportunities, and the effect on local quality of life, roads,
and access to recreational areas. In many cases, such as
police, fire, and roads, the increased capabilities must be in
place even before the construction phase begins.
Infrastructure improvements remain a particular area of
concern. The commercial port will require significant
improvements and upgrades to adequately handle the inflow of
construction materials and supplies during and after the
military buildup. The capacities for water, power, solid waste,
and wastewater are all major concern due to the predicted
increase in demand. We will work with other Federal agencies
and the Government of Guam to find mutually beneficial ways to
improve the existing infrastructure on Guam, where practicable.
DOD is committed to being a good steward of the
environment. In partnership with Federal and Guam agencies, we
will carefully build in protection for Guam's precious
resources--coral reefs, cultural and historic sites, endangered
species, and other natural resources. We will take special
precautions and actions on invasive species, noise, and air
quality. Where needed, we would develop appropriate mitigation
plans. We are mindful of Guam's water, wastewater, and solid
waste challenges and will do our part in helping Guam in
meeting EPA standards.
We recognize Guam's culture and heritage. We will work
diligently with Guam's people to ensure that protection. The
patriotic spirit of Guam is well-known throughout our services.
We honor their service and the sacrifice of those who gave
their life in defense of our nation. Their sacrifices will
never be forgotten.
The buildup on Guam is one of the most significant events
in the region since the end of the Vietnam War. This will bring
unprecedented beneficial opportunities to the region.
Department of Defense is committed to building a responsible
program that supports our national interest, ensures peace and
stability in the region, and benefits the people of Guam.
Thank you for this important opportunity to discuss the
military buildup on Guam. I also would like to thank you for
your continued support for our forces and their missions. Thank
you.
Mrs. Christensen. Thank you, General Bice.
[The prepared statement of Mr. Bice follows:]
Statement of David F. Bice, Executive Director,
Joint Guam Program Office
Madam Chairperson and members of the Subcommittee, thank you for
the opportunity to testify on U.S. Military Buildup on Guam and
challenges facing the community. As the Executive Director for the
Joint Guam Program Office, I am responsible for the planning and
integration of the Department of Defense infrastructure capabilities,
master plan development, program and budget synchronization,
construction oversight, government and business coordination, and
strategic communications for the realignment of military forces to
Guam.
BACKGROUND
The proposed military buildup on Guam is a key component of the
United States Pacific Command's initiative known as the Integrated
Global Presence and Basing Strategy (IGPBS). IGPBS transforms U.S.
global posture by increasing the flexibility to contend with
uncertainty; strengthen allied roles; build new partnerships; create
the capacity to act both within and across the Pacific region; develop
rapidly deployable capabilities, and focus on effective military
capabilities. Principle elements of the IGPBS initiative include the
relocation of U.S. Marine Corps ground and air assets to Guam from
various locations; creation of a U.S. forward based operating port for
modern littoral warfare ships, combat logistics force ships,
submarines, surface combatants, and high-speed transport vessels;
continued efforts to develop a U.S. Air Force Global Intelligence,
Surveillance, and Reconnaissance and Strike hub; and to develop and
maintain a robust Western Pacific logistics hub sufficient to support
United States Pacific Command's requirements.
Guam's strategic location as the U.S. most western territory in the
Pacific will enhance military force flexibility, freedom of action,
prompt global reaction, regional engagement, and crisis response.
Forces to be located on Guam will be readily employable and positioned
forward with strategic and operational maneuver space. Operationally,
Guam's location in the Pacific enhances power projection and
flexibility for expeditionary missions.
On May 1, 2006, the U.S.-Japan Security Consultative Committee
(SCC), consisting of the Secretaries of Defense and State and their
Government of Japan counterparts, released a ``U.S.-Japan Roadmap for
Realignment Implementation'' document. The SCC document outlines the
schedules and timelines for implementation of the realignment
initiatives in the October 29, 2005 SCC document, ``U.S.-Japan
Alliance: Transformation and Realignment for the Future''. One of the
several initiatives concerns the move of approximately 8,000 III Marine
Expeditionary Force (MEF) personnel and their approximately 9,000
dependents from Okinawa to Guam. The desired completion date for the
relocation is by 2014, a date requiring substantial U.S. and Government
of Japan financial support and commitment. The estimated total
development cost of the relocation of Marine units to Guam is $10.27
billion. The Government of Japan will provide up to a total of $6.09
billion, including $2.8 billion in cash for facilities and
infrastructure and $3.29 billion in equity investments and loans to
special purpose entities that will provide housing and utilities to
support the Marines. The remaining $4.18 billion, and any additional
cost growth, will be provided by the U.S. government.
PLANNING
A Guam Joint Military Master Plan is currently being developed.
Land use alternatives are expected to be developed by November 2007,
with the planning-level master plan to be completed by July 2008. Our
preference is to remain on land owned by the federal government, but at
this stage we have not determined whether our requirements will fit on
existing DoD lands. Our master planning and environmental planning
process will determine the appropriate course of action regarding land
use.
An Environmental Impact Statement (EIS) is also in development. The
Notice of Intent was published in March 2007, and public scoping
meetings held on Guam, Tinian, and Saipan in April 2007. As a result of
the scoping meetings we received 990 comments from private citizens,
elected officials, and numerous organizations and agencies. Some
examples of concern expressed by the Public centered on social-
economics, utilities, land use planning, public health and social
services, and traffic. Consideration of the comments will be ongoing
throughout the development of the Environmental Impact Statement. At
the request of the Chief of Naval Operations, the EIS will also examine
alternatives to support a transient CVN for a period of 21 days several
times per year. The Final Environmental Impact Statement is scheduled
for completion in October 2009, with the Record of Decision expected to
be signed by the Assistant Secretary of the Navy, Installations and
Environment by January 2010.
Once the Environmental Impact Statement is complete and the Record
of Decision is signed, actual construction may begin. In order to
complete the relocation by 2014, it is estimated that the island's
construction capacity must exceed $3.0 billion per year, more than
three times the highest level of construction activity ever conducted
on Guam. We are developing an acquisition strategy and working with the
construction industry to find ways to achieve the necessary supply of
materials, skilled labor, and management oversight on Guam to support
the necessary level of construction activity.
The Department of Defense's Office of Economic Adjustment, which
normally assists BRAC-affected communities, is playing a critical role
in helping the Government of Guam to plan and prepare for the military
build-up. The Office of Economic Adjustment will, in coordination with
other Federal Departments and Agencies, provide technical and financial
assistance to Guam. Their engagement with the Government of Guam will
continue over the long run and will focus on developing a sound,
comprehensive and effective assistance strategy and action plan to
assist the Government of Guam and its agencies in adjusting to support
the construction phase and the eventual arrival of military members and
their families.
BENEFITS TO THE AFFECTED COMMUNITIES
Guam and the surrounding island's economies will be impacted though
the multi-billion dollar construction projects and improvements to the
islands' utility services that support the military forces. The
addition of approximately 20,000 U.S. service members and their
families will add considerably to the islands' economies and tax base
through increased demand for retail goods and services, airline
transportation, housing, entertainment, and consumer spending. The
build-up will attract a wide range of individuals from the private
sector who are engaged in professional services, such as medical,
education, legal, engineering, human services, and others, which will
improve the overall quality of life to the island residents. The
arrival of men and women who routinely volunteer and support churches,
schools, youth sports, philanthropic organizations, and community
events will add to the social fabric of the communities. The increase
in population is expected to spur entrepreneurship; people will invest
in island projects and take increased risks that demand greater capital
because of the assurance that a population-base exists that will create
the demand for new goods or services.
Allied and regional military forces will frequently visit Guam and
the surrounding islands for training and military exchanges. The region
will benefit by the near-by presence of highly trained and capable
forces ready to respond to crises, natural disasters, and events
requiring humanitarian assistance. The increased military presence will
serve to maintain commercial access to the Pacific Region.
CHALLENGES FACING THE COMMUNITY
We expect the DoD population on Guam will expand from approximately
14,190 to nearly 38,000. This will result in an overall 10 year total
population growth rate of nearly 28%--twice the historic high in the
1990s. This does not include construction induced temporary population
increase.
It is estimated that 12,000 to 15,000 workers will be needed on
Guam to construct the necessary operational, training, housing and
other support facilities. Many, perhaps as many as 75% or more of these
workers will come from off island and may require H-2B visas (``off
island'' workers may be FAS workers or other U.S.-authorized workers
who do not need H-2B visas). There is a nationwide H-2B Visa cap at
66,000 per year, while the nationwide demand for H-2B Visa workers
exceeds that cap. We are working closely with other Federal Departments
and Agencies and the Government of Guam to create training
opportunities for residents of Guam to and the surrounding U.S.
territories to acquire new skills to be ready for these increased job
opportunities. Additionally, we will work with these departments and
agencies in coordinate medical care, support facilities, homeland
security impacts, and human services for arriving U.S. and foreign
workers. We will also consider the effects on tourism, local business
and fishing industries, and the long term impact on labor opportunities
for local citizens and military family members.
Socio-economic areas of concern include the strain on safety and
security services (police, fire, and emergency medical support), the
impact on small business and local job opportunities, and the effect on
local quality of life, roads, and access to recreational areas. Schools
are also a priority; the Department of Defense Education Administration
Schools and the Guam Public School System must attract and retain
quality teachers for both school systems. In many cases, such as
police, fire, and roads, the increased capabilities must be in-place
even before the construction phase begins. As you will hear, we are
working closely with other Federal Departments and Agencies and the
Government of Guam to resolve these issues.
In terms of health and human services, we are concerned about
specialty medical care availability on island, medical care for foreign
workers, infectious disease risk and public health, the need for
additional counseling services, and affordable quality housing. We will
be working with Federal and Guam authorities to address these concerns.
Infrastructure improvements remain a particular area of concern.
The commercial port will require significant improvements and upgrades
to adequately handle the inflow of construction materials and supplies
during and after the military build-up. The capacities for water,
power, solid waste, wastewater, hazardous waste, roads, and the
commercial airport are all of major concern due to the predicted
increase in demand. All of these areas will be addressed in the
Environmental Impact Statement. We expect the study to identify a
substantial need and opportunity to improve the existing infrastructure
on Guam. The Government of Guam has identified millions of needed
improvements for the island's infrastructure. Although the DoD /
Government of Japan funds are intended to provide only facilities to
support the arrival of the Marines and their dependents, we will work
with other federal agencies and the Government of Guam to find mutually
beneficial ways to improve the existing infrastructure on Guam, where
practicable.
On August 2, 2007, Department of the Interior, Deputy Assistant
Secretary for Insular Affairs, David Cohen and I co-chaired an Inter
Agency conference to examine how the Federal Government can better
coordinate support and assistance in helping Guam to prepare for this
rebasing program. All attendees, representing nearly every Federal
Department and Agency, recognized that we need to engage all elements
of the Federal Government to support the people of Guam as we ask them
to assume a more strategic role in the security of our Nation. As I
stated earlier, some of this additional support and assistance to Guam
must be in place prior to the construction phase. As we proceed with
the relocation effort, Secretary Cohen and I will continue to hold
regular Inter Agency meetings to help synchronize Federal support to
Guam and the CNMI.
DoD is committed to being a good steward of the environment. We
have concurrence from following agencies to serve as cooperating
agencies to assist us to adequately evaluate the potential
environmental effects of the proposed action: U.S. Department of
Agriculture, Federal Highways Administration, Federal Aviation
Administration, U.S. Army Corps of Engineers, U.S. Air Force, and the
U.S. Environmental Protection Agency. Additionally, in partnership with
Federal and Guam agencies, we will carefully build-in protection for
Guam's precious marine resources, coral reef, cultural and historic
sites, endangered species, and other natural resources. We will take
special precautions and actions on invasive species, noise, and air
quality standards. Where needed, we will develop appropriate mitigation
plans. We are mindful of Guam's water, wastewater, and solid waste
challenges and will do our part in helping the Government of Guam in
meeting EPA standards. On June 4-5, we conducted a partnering session
with all Federal and Guam regulators, where all attendees acknowledged
the need to work closely to develop a comprehensive and successful
Environmental Impact Statement and action program.
CONCLUSION
The Department of Defense recognizes Guam's culture and heritage.
The patriotic spirit of Guam is well known throughout our military
services. Men and women from Guam serve our nation around the world. We
honor their service and the sacrifice of those who gave their lives in
defense of our great nation. We give special tribute to those who have
given their lives in the current Global War on Terror. Their sacrifices
will never be forgotten.
The Guam relocation requires a coordinated effort involving the
Government of Guam, Department of Defense, Federal Agencies, and
private businesses. The build-up on Guam is one of the most significant
events in the region since the end of the Vietnam War. Relocating over
17,000 military personnel and family members to Guam will have
significant impact to the island and region. This will bring
unprecedented beneficial opportunities for the region. We need
innovative solutions to make this a success. The Department of Defense
is committed to building a responsible program that provides for peace
and stability in the region, enables operational maneuver for our
forces and benefits the people of Guam and the surrounding islands.
Thank you for this important opportunity to discuss the military
build-up on Guam. I would also like to thank you for your continued
support and dedication. We have a challenging and exciting program to
accomplish and I look forward to working with all involved in the
future.
Thank You
______
Mrs. Christensen. The Chair now recognizes Mr. Lujan to
testify for five minutes.
STATEMENT OF KENNETH Q. LUJAN, ADMINISTRATOR FOR GUAM AND CNMI,
U.S. SMALL BUSINESS ADMINISTRATION
Mr. Lujan. Hafa Adai and good morning, Chairwoman
Christensen and Congresswoman Bordallo. Thank you for inviting
me to discuss SBA's commitment to assisting small businesses on
Guam. I am Kenneth Lujan, Guam Branch Manager for the U.S.
Small Business Administration, SBA. I oversee the areas of
responsibility that are in Guam, CNMI, the FSM, Republic of
Palau, and Republic of the Marshall Islands.
The mission of the SBA is to aide, counsel, and protect the
interests of small business concerns, as well as to advocate on
their behalf. SBA's outreach of assistance to small businesses
extends to all 50 States, as well as all U.S. territories, in
the form of technical, financial, contracting, and disaster
recovery assistance. For many years, SBA has aided the island
communities with its direct loan programs after natural
disasters and its guaranty loan program for start-up and
existing small businesses. SBA continues to remain committed to
existing small businesses in achieving the entrepreneur spirit
on the island of Guam.
I want to provide the Subcommittee with a small business
background of the island of Guam. In the year 2002, Guam's
establishments numbered 2,926, employed 43,104 people, and
generated $4.6 billion in revenues. Small employer
establishments with 50 or more employees represented 97.2
percent of businesses on the island. Establishments with 50 or
more employees accounted of 51 percent of employed persons and
almost 50 percent of revenues. Most of these jobs were in
retail trade, accommodations and food services, administrative,
support, waste management, and remedial services. In addition,
the total number of bank branches in Guam also declined from 34
in 2004 to 31 in 2005. SBA recognizes the challenges of the
small business concern and continues to work with the island
small business community, as well as our government to adjust
such concerns.
Additional statistics for Guam reveal that there currently
38 8(a) firms, 48 Service-Disabled Veteran Owned firms, 104
Women-Owned firms and 203 Minority-Owned firms on Guam that are
registered to do business with the Federal Government. SBA is
actively engaging with a number of government, private, and
non-profit organizations to expand our public-private
partnerships. By doing this, we plan to achieve improved local
outreach efforts following a disaster, improving plan
capabilities and bolstering processing capabilities.
A challenge affecting the small business community in Guam
and its neighboring islands is having the necessary data to
make sound business decisions. SBA encourages each business
obtaining an SBA-guaranteed loan to develop a business plan to
serve as their roadmap to success. Feasibility studies,
estimation of cost, budget forecasting, and management of
operations play an intricate role in operating a successful
business on this island. SBA provides resources necessary to
develop such a roadmap to success. To provide adequate
training, counseling, and business development plans, SBA
sponsors several Small Business Development Centers on Guam, as
well as throughout the islands. And they're there to assist the
small businesses.
Guam continues to experience discussions of military
buildup, which have stimulated the business environment, as
witnessed by the increase in business activity throughout the
island. The massive influx of military personnel and their
families will bring new business, as well as potential new
business owners to the island. SBA will continue to provide
assistance to existing small business owners and potential new
small businesses, as well as assists them in securing
government contracts on the island of Guam, many of which are
associated with the Guam Integrated Military Development Plan.
These contracts will be crucial to ensure that the island can
accommodate the potential reassignment of thousands of military
personnel.
Based on Defense Federal Acquisition Regulation (DFAR)
236.570(c)(1), solicitations for military construction
contracts that are funded with military construction
appropriations and are estimated to exceed $1 million will
allow a preference to United States firms. To qualify for the
preference, contract performances must be in a United States
territory or possession in the Pacific, or in a country
bordering the Arabian Gulf. To be defined as the U.S. firm, (1)
the corporate headquarters must be in the United States; (2)
the firm must have filed corporate and employment tax returns
to the United States for a minimum of 2 years, and must have
filed State and Federal tax returns for 2 years, and must have
paid taxes due as a result of these filings, and (3) the firm
must employ the United States citizens in key management
positions. This provision allows for contracts to be made to
U.S. firms if they are made using appropriate funds.
Since the passage of the Small Business Act in 1953, it has
been the policy of Congress to ensure that small businesses
receive a fair portion of Federal contracts. The Small Business
Acts sets the goal of 23 percent of all Federal contract
dollars for small businesses. SBA's Office of Government
Contracting and Business Development works to create an
environment for maximum participation by the service-disabled
veteran-owned, disadvantaged, and woman-owned small businesses
in Federal contracting and large prime contract awards.
Guam has experienced an increase in the number of firms
that have been certified under HUBZone program or the
Historically Underutilized Business Zone. The HUBZone program
stimulates economic development and creates business in urban
and rural communities by providing Federal contracting
preference to small businesses. These preferences go to small
businesses that obtain HUBZone certification in part by
employing staff who live in the HUBZone.
Under the Transportation Equity Act, the entire island of
Guam was designated as a HUBZone location, and as a result, the
HUBZone-certified companies are beginning to receive Federal
contracts. Currently, there are 122 HUBZone-certified companies
located on Guam.
To further assist businesses, SBA is continuously working
with our entrepreneur development partners, including the
SPDCs, to develop a strategy in which they can play an integral
part in assisting small companies that are interested in doing
business with the Federal Government. Outreach efforts are
being directed toward potential businesses to assist them in
registering their companies on the Central Contractor Registry,
or CCR, website.
Extensive training modules are planned for the next fiscal
year to assist those businesses who are beyond the startup
stage, and additional training for those who are just getting
started.
With discussions of the Guam Integrated Military
Development Plan, SBA will continue to prepare the community
with the necessary training, as well as inform small businesses
on how to do business with the Federal Government. SBA plans to
work with the Department of Defense and U.S. GSA, General
Service Administration, to ensure that small businesses in Guam
receive a fair opportunity compete for contracts.
With that, I'd like to thank you, Si Yu'us Ma'ase, for the
opportunity to speak to you today about this very important
topic for the island of Guam. And this concludes my testimony.
I look forward to answering questions you may have.
Mrs. Christensen. Thank you, Mr. Lujan.
[The prepared statement of Mr. Lujan follows:]
Statement of Kenneth Q. Lujan, Guam Branch Manager,
U.S. Small Business Administration
Hafa Adai, Chairwoman Christensen, Ranking Member Fortuno and
distinguished members of this subcommittee. Thank you for inviting me
to discuss SBA's commitment to assisting small businesses in Guam. I am
Kenneth Lujan, Guam Branch Manager for the U.S. Small Business
Administration (SBA).
The mission of the U.S. Small Business Administration is to aide,
counsel, and protect the interests of small business concerns, as well
as to advocate on their behalf SBA's outreach of assistance to small
businesses extends to all 50 States, as well as all U.S. territories,
in the form of technical, financial, contracting and disaster recovery
assistance. For many years, SBA has aided the island communities with
its direct loan programs after natural disasters and its guaranty loan
program for start-up and existing small businesses. SBA continues to
remain committed to assisting small businesses achieving the
entrepreneurial spirit on the island of Guam.
I want to provide this subcommittee with a small business
background of the island of Guam. In 2002, Guamanian establishments
numbered 2,926; employed 43,104 people; and generated S4.6 billion in
revenues. Small employer establishments with 50 or more employees
represented 97.2 percent of business on the island. Bankruptcies in
Guam totaled 10 in 2005, compared to a total of 6 in 2004.
Establishments with 50 or more employees accounted for 51.0 percent of
employed persons and almost 50 percent of revenues. Most of these jobs
were in retail trade, accommodation and food services, administrative,
support, waste management and remediation services. In addition, the
total number of bank branches operating in Guam declined from 34 in
2004 to 31 in 2005. SBA recognizes the challenges of the small business
concern and continues to work with the island small business community,
as well as our government to address such concerns.
Additional statistics for Guam reveal that there are currently 38
8(a) firms, 48 Service-Disabled Veteran Owned firms, 104 Women-Owned
firms and 203 Minority-Owned firms on Guam that are registered to do
business with the federal government. SBA is actively engaging with a
number of government, private, and nonprofit organizations to expand
our public-private partnerships. By doing this, we plan to achieve
improved local outreach efforts following a disaster, improving
planning capability and bolstering processing capability.
A challenge affecting the small business community on Guam and its
neighboring islands is having the necessary data to make sound business
decisions. SBA encourages each business obtaining an SBA-guaranteed
loan to develop a business plan to serve as their roadmap to success.
Feasibility studies, estimation of costs, budget forecasting and
management of operations play an intricate role in operating a
successful business on the island of Guam. SB A provides resources
necessary to develop such a roadmap to success. To provide adequate
training, counseling and business development plans, SBA cosponsors a
chapter of Service Corps of Retired Executives (SCORE) and seven Small
Business Development Center locations on Guam to assist local small
business owners.
Guam continues to experience discussions of military buildup, which
have stimulated the business environment as witnessed by the increase
in business activity throughout the island. The massive influx of
military personnel and their families will bring new business as well
as potential new business owners to the island. SBA will continue to
provide assistance to existing small business owners and potential new
small businesses, as well as assist them in securing government
contracts on the island of Guam, many of which are associated with The
Guam Integrated Military Development Plan. These contracts will be
crucial to ensure that the island can accommodate the potential
reassignment of thousands of military personnel.
Based on Defense Federal Acquisition Regulation (DFAR)
236*.570(c)(l), solicitations for military construction contracts that
are funded with military construction appropriations and are estimated
to exceed $1 million will allow a preference to United States firms. To
qualify for the preference, contract performance must be in a United
States territory or possession in the Pacific or in a country bordering
the Arabian Gulf. To be defined as a U.S. firm: 1) the corporate
headquarters must be in the United States; the firm must have filed
corporate and employment tax returns in the United States for a minimum
of 2 years (if required), must have filed State and Federal income tax
returns (if required) for 2 years, and must have paid any taxes due as
a result of these filings; and the firm must employ United States
citizens in key management positions. (DFAR 252.236-7010). This
provision allows for contracts to be made to U.S. Firms if they are
made using appropriated funds.
Since the passage of the Small Business Act in 1953, it has been
the policy of Congress to ensure that small businesses receive a fair
portion of Federal contracts. The Small Business Act sets a goal of
twenty three percent of all Federal contract dollars for small
businesses. SBA's Office of Government Contracting and Business
Development (GCBD) works to create an environment for maximum
participation by service disabled veteran-owned, disadvantaged, and
woman-owned small businesses in federal government contract awards and
large prime subcontract awards. GCBD advocates on behalf of small
business in the federal procurement world.
Guam is experiencing an increase in the number of firms that have
been certified under the HUBZone (Historically Underutilized Business
Zone) certification program. The HUBZone Program stimulates economic
development and creates jobs in urban and rural communities by
providing Federal contracting preferences to small businesses. These
preferences go to small businesses that obtain HUBZone certification in
part by employing staff who live in a HUBZone. Under the Transportation
Equity Act, the entire island of Guam was designated as a HUBZone
location, and as a result, the HUBZone-certified companies are
beginning to receive federal contracts. Currently, there are 122
HUBZone certified companies located on Guam.
To further assist small businesses, SBA is continuously working
with our entrepreneurial development partners, including SBDCs to
develop a strategy in which they might play an integral part in
assisting companies that are interested in doing business with the
federal government. Outreach efforts are being directed toward
potential businesses to assist them in registering their company on the
Central Contractor Registry (CCR) website. Extensive training modules
are planned for the next fiscal year to assist those businesses who are
beyond the ``start-up'' stage with additional training for those who
are just getting started.
With discussions of The Guam Integrated Military Development Plan,
SBA will continue to prepare the community with the necessary training
as well as inform small businesses on how to do business with the
federal government. SBA plans to work with the Department of Defense
and U.S. General Services Administration to ensure that small
businesses in Guam receive a fair opportunity to compete for contracts.
Thank you and Si Yu'us Ma'ase for the opportunity to speak to you
today about this very important topic for the island of Guam. This
concludes my testimony; 1 look forward to answering any questions you
may have.
______
Mrs. Christensen. I recognize myself for five minutes of
questions, and I'll begin with the Deputy Assistant Secretary
Cohen. This is a question that really has always--I've always
felt I needed to have answered. The IGIA does play a very
important role in coordinating the activities leading up to the
military buildup, coordinating with different Federal agencies,
and you say that its role is in coordinating Federal policy
with respect to the territories. Can you--is there a framework
for that Federal policy? What is the Federal policy with
respect to territories?
Mr. Cohen. Thank you, Madam Chairman. Well, what the IGIA
attempts to do is make sure that when the Federal Government
does adopt policies that affect the territories, that those
policies are adopted, number one, in coordinated fashion, and
number two, in a way that's cognizant of the special needs and
circumstances of the territories.
So, as you well know, a lot of times, policies might be
adopted that applies to the territories as well as to the 50
States, but the policies are designed for the 50 States, and
when you apply them to the territories, they have unintended
consequences. For example, when a law on airport screeners made
citizens of American Samoa ineligible to work at their own
airport, that was an example of that type of thing. And then
sometimes territories can be inadvertently left out of policies
that they should be included in.
So, the IGIA is designed to try to address those issues,
number one, making sure that policy toward the territories is
well-coordinated, and that's why we think it is very--it is an
effective mechanism to bring all the agencies together and to
make sure that the special circumstances of the territories are
taken into account.
Mrs. Christensen. OK, thank you. General Bice, you spoke
about training and that the DOD would be involved in training
for the jobs and the different needs that will develop out of
this military buildup. How is DOD collaborating with the Guam
Community College and the Construction Association members here
on the island?
General Bice. Thank you, Madam Chairman. We are working
closely with the Guam Department of Labor in establishing what
we see is our worker requirements and what skills we see that
will be needed, and then also working closely with the
Secretary Cohen, the U.S. Department of Labor, U.S. Department
of Education, and how we can address training here on Guam.
The Department of Defense sees the critical need to get
that established, not only for the immediate construction phase
that's impending, but also for the long term requirements after
the construction is completed.
We see a need for high-tech services, IT, Services and
Support Industry, that's going to be here supporting the
Federal Government, the military here on Guam. It is going to
place great demand for high-skilled workers here, and we would
like to see that filled predominantly by Guam citizen and
citizens from the local islands. So, yes, we are working
closely with Mrs. Connelley at the Guam Department of Labor in
establishing those requirements.
Mrs. Christensen. Thank you. Mr. Lujan, you gave a history
of the small businesses on Guam and gave some statistics, but
I'm still not clear on how you assess the health of this small
business sector on Guam today? What is your assessment of the
health of the sector of the economy in Guam?
Mr. Lujan. The health of the economy, thank you----
Mrs. Christensen. Small business.
General Bice. Thank you for the question, Madam Chair. The
health of the economy right now is, we are still looking at
this and ensuring that we improve upon the health. With the
influx of the military personnel plus the number of dollar
amounts coming through, we are there to try to help and see if
we can improve it. At this point in time, as Congresswoman
Bordallo mentioned, that with the increase of, the 300 percent
increase and real estate prices have gone up, it has afforded
the economy some room for some improvements, and there's room
for growth. What we like to see, as we go forward with this, is
to see that we see more small businesses interact and get
engaged with the economy, and get engaged with the contracting
activity.
Mrs. Christensen. OK. I'm going to stop now because I
expect that we are going to have several rounds of question for
this panel, and I'd now recognize Congresswoman Bordallo for
her questions.
Ms. Bordallo. Thank you very much, Madam Chair. Good
morning, Mr. Cohen----
Mr. Cohen. Good morning.
Ms. Bordallo.--and welcome back to Guam.
Mr. Cohen. Thank you.
Ms. Bordallo. My first question is for you. The President's
Interagency Group on the Insular Area is known, of course, to
everyone here as the IGIA, and it was established by executive
order in 2003. It seems to be well-suited and designed to
facilitate cooperation with the Federal Government and between
the Federal Government and the Government of Guam with respect
to this buildup. In what ways has the IGIA engaged in this
process to date, and in what function is it being tapped and
used with respect to the ongoing buildup? Do you envision a
budget formulation and recommendations to OMB through the IGIA?
And can the Government of Guam expect Federal partners to come
forward with the Department of the Interior in helping to fund
identified priorities and requirements?
Mr. Cohen. Thank you for the question, Madam Congresswoman.
What the IGIA is doing is facilitating the effort to identify
the needs for this buildup, the needs both from the Federal
side and the needs as they relate to the community in Guam. And
then, whether under the auspices of the IGIA or whether the
auspices under the individual agencies, if there are resource
requirements that are best addressed by the Federal Government,
then we can work within the administration to try to secure
those commitments.
What we are doing, for example, is getting all the agencies
together to work with the representatives from Guam to identify
the critical path items that need to be addressed, and then we
are going to get a sense of how much it is going to cost. And
the Government of Guam has already done a great deal of work in
this regard as well. So, we are in the process of comparing
notes. Then we want to look at what existing resources there
are to address these and identify any gaps that will prevent us
from successfully implementing the project, both from the
military's perspective and from the perspective with the people
of Guam. And at that point, certainly, under the leadership of
the Department of Defense, possible resource commitments from
individual agencies can be explored and formulated. We are not
at that point yet, but of course, we have to move very quickly
to identify these needs and any resource requirements.
Ms. Bordallo. So, in your mind, the process is working?
Mr. Cohen. Yeah. We think it is working.
Ms. Bordallo. General Bice, I have a question for you.
Would you care to comment on the role of the IGIA from the
Joint Guam Program Office perspective, and how does the
Department of Navy intend to help the Government of Guam access
and receive Federal support and Federal funds for identified
projects that fall outside the gate?
General Bice. Thank you very much, Congresswoman Bordallo.
We are working closely with Secretary Cohen and the IGIA on
establishing a sense of urgency with other Federal agencies in
getting ready for this military buildup. We see that, as I
mentioned in my testimony, that there are going to be
requirements long before the first construction worker ever
shows up, such as police, fire, roads. And we are working
closely with respective Federal agencies to identify those
requirements, identify the resources needed to provide them,
and then certainly the Department of Defense will work in
coordination with them to make sure Congress understands those
requirements and hopefully gets the funding to support it.
Ms. Bordallo. Thank you. I have another round of questions,
Madam Chair, so if you're going to the second round, I would
like to ask.
Mrs. Christensen. You can go ahead and ask.
Ms. Bordallo. All right. This question is for both Mr.
Cohen and General Bice. Concerns have been expressed about the
social impacts that would likely result from a population
increase associated with the military buildup. Senator Won Pat,
later today, will testify to these concerns, and states in her
written testimony a specific desire for gender issues to be
examined. In what ways will the Federal Government be sensitive
to the social impacts, and how will social impact be measured,
gauged, and mitigated by the Federal Government? Do you believe
commissioning a study of social impacts is warranted? And, if
so, at what time would such a study be most relevant within the
projected time frame for planning, and how might it be pursued
and funded? Mr. Cohen, you first.
Mr. Cohen. Sure. I think it is important to address the
gender issues in the broader context of the possible--or the
likely social impacts of the relocation. From the Department of
the Interior's perspective, we are prepared to help with
funding. We have a technical assistance budget that can be
helpful in this regard. But we also want to talk to our
colleagues in the Federal family, you know, as one of the
seminars that we had on August 2nd was on socioeconomic
impacts. So, we have a number of agencies that are very
actively looking at these very issues, Health and Human
Services, Department of Education, and others. General Bice
highlighted this in his testimony, and so the Department of
Defense is sensitive to it. We will defer to the experts in the
Federal Government as to timing, but we are certainly willing
to work with our partners in the Federal Government, and the
government and community of Guam, to do our part to contribute
to this effort.
Ms. Bordallo. Well, Mr. Secretary, you and I worked very
well together since I've been in Congress, so I will look
forward to working together with you on these particular
issues.
Mr. Cohen. Certainly.
Ms. Bordallo. General Bice?
General Bice. Yes, ma'am. And, for the Department of
Defense, during our scoping sessions we held in April for the
Environmental Impact Study, we received over 900 comments from
the public. Most of them dealt with socioeconomic issues, and
that's going to help us guide our Environmental Impact Study
and Statement to address those specific issues. Of course,
there's always room and opportunity for additional studies and
clarity in that, and certainly speaking on behalf of the
Department of Defense, we would welcome any support or any
analysis in there that can be taken to make this a beneficial
for both the military as well as the people of Guam.
Ms. Bordallo. Thank you very much. And, Madam Chair, I
still have a few more questions.
Mrs. Christensen. We will have as many rounds as is needed
to get our questions out.
I'm glad to hear the U.S. Assistant Secretary Cohen say
that the OIA will be prepared to provide technical assistance
grants to do studies that might be needed, because I know that
that's a relatively easy process to apply for those funds, and
I hope that some would be set aside specifically to deal with
the issues that Guam is going to need to research here.
And, Secretary Bice, I'm also glad to hear your answer as
well.
I have a couple of other questions. I guess I would go to
Secretary Cohen first, as well, on the second round. You've
listed the members of the IGIA, and I don't know if it is an
oversight, but I don't see Homeland Security listed as a member
of the IGIA. And I think, and I'm sure you would agree, that it
is a very important--would have a very important role to play,
especially in the one that is specifically addressing the
issues that come out of the military buildup.
Do you plan to include the Department of Homeland Security?
Have you had any informal or formal discussions with the
Department? And, if so, could you identify what program offices
that you have met and the kinds of discussions, insofar as you
can reveal them today, that have gone on?
Mr. Cohen. Oh, certainly. Thank you, Madame Chairwoman.
And, it was an oversight, because they are involved. They
are a member of the IGIA and they've been participating with us
fully. A number of offices and agencies within Homeland
Security have been participating with us.
Off the top of my head, of course, we have U.S. Citizenship
and Immigration Services that are going to be instrumental in
any effort that we have to seek supplemental labor to the
extent that the citizens of Guam and the surrounding
territories and Freely Associated States cannot provide enough
labor for this project. You know, we are going to have to
explore Federal policies that Homeland Security is going to be
centrally involved with.
Mrs. Christensen. Do you have an idea of how much of the
needed labor can be supplied by CNMI and the Freely Associated
States, do you have any idea?
Mr. Cohen. Well, we don't want to totally prejudge it, but
the Department of Defense, in its testimony and also in my
written statement, is anticipating that perhaps 75 percent of
the labor may have to come from outside.
Having said that, it is our intention to maximize the
amount of labor that's provided by the citizens of Guam, to the
extent that these are the opportunities the citizens want, and
we know that the citizens of Guam also want to focus on the
long-term higher level managerial opportunities.
But, this is the island of the people of Guam, so they
should have first dibs on whatever opportunities----
Mrs. Christensen. Absolutely.
Mr. Cohen --they want, and then, you know, Northern Mariana
Islands and others.
But--and the General can correct me if I'm wrong--but I
believe we are trying to prepare for that type of eventuality
where you might need that level of supplementation from the
outside. Other agencies as well are participating with us.
Mrs. Christensen. Did you want to add anything to that?
I'm assuming that you agree that----
General Bice. Yes ma'am.
Mrs. Christensen --Guam, people of Guam first----
General Bice. We certainly want to, because we do want to
make this good for the neighborhood. So, we want to exploit as
much training as we can for the citizens of Guam, CNMI, and
Freely Associated States. But, in the end, we don't think that
there's going to be a sufficient labor pool out there to meet
all of our needs, and we have to prepare for that eventuality.
What the exact number is, we certainly don't know it at
this point, but we know that we are going to have to go for
both, and we want to have priority for the Guam labor, CNMI,
and for the Freely Associated States.
Mrs. Christensen. Thank you.
General Bice, in your statement, you said something to the
effect that DOD will work to improve the infrastructure of Guam
where practical.
Do you consider power to be an essential element of the
operations of the military bases on Guam, and would you say
that that's critical? And, if so, isn't it in the military's
interest to ensure that the civilian power infrastructure on
Guam, which the bases are dependent on, is as robust as
possible, or do you believe that it is the local government
that should be solely responsible for making those upgrades
that would be necessary?
General Bice. Madam Chair, thanks for that answer (sic). It
is a good question, and it is an issue that was addressed in
the agreement between the United States and Japan. Japan agreed
to provide up to $700 million in utility upgrade in support of
the Marine relocation here, in the areas of water, wastewater,
power, and solid waste management.
In the area of power, we do see a need to increase, add to
the capacity, if you will, of Guam's electrical grid, and we
are currently doing studies in conjunction with the Guam Power
Authority and the Consolidated Commission on Utilities, doing
analysis as to how best to do that.
The arrangement we had through special purpose entities
with the Government of Japan allows us to extend that beyond
the military base, where we would normally stop, and it could
positively affect the Guam costumer base.
Mrs. Christensen. But I know that in testimony that we will
probably hear later from Mr. Sanchez of the Consolidated
Commission on Utilities, that he'll say that the military would
best be served by using the existing grid rather than creating
a new and entirely new system. I'm hearing that, yes, you would
help to build up the power infrastructure here, but you're
still planning on a separate entirely new system. Don't you
know?
General Bice. That is not correct. And----
Mrs. Christensen. OK. I'd like to have----
General Bice --we are looking at all options. And,
preferably, the Department of Defense does not want to be in
the power business. We want to be buying power. We want to be a
costumer of power. And working with the Consolidated Commission
on Utilities, as well as the Government of Japan, who is making
the investment into the infrastructure, we are looking on how
best to do that.
But preferably, we'd like to be part of, you know, have to
be part of the Guam grid. So, it adds capacity to the grid in
support of the military buildup.
Mrs. Christensen. But from the U.S. side, the current Guam
grid is, or is not, considered critical infrastructure to DOD?
General Bice. Oh, it is certainly is considered critical,
yes, ma'am.
Mrs. Christensen. OK. Thank you.
Thank you, General.
I now recognize Ms. Bordallo for her questions.
Ms. Bordallo. Thank you, Madame Chair.
Mr. Lujan, I have a question for you. I've worked with you
in the past couple of years to have Guam designated as a
HUBZone, all of Guam. And as a result of these developments, I
have encouraged eligible small businesses on Guam to apply for
the HUBZone certification.
In your testimony today, you noted that there are now 122
such certified firms; is that correct?
Mr. Lujan. Yes.
Ms. Bordallo. Yes.
Mr. Lujan. Yes, it is.
Ms. Bordallo. OK.
Mr. Lujan. 122 right now.
This is a moving target actually, because as we see the
firms get certified, they also have the responsibility of
maintaining that certification. Unlike most of the perception
out there, just because the island of Guam is considered to be
a HUBZone, they still have to get certification from the SBA.
Ms. Bordallo. That is correct, yes.
Mr. Lujan. So, we encourage online applications to get
certifications from the SBA.
What we believe, we believe that the HUBZone certification
really helps out small businesses. We've seen an increase in
contracting activities within both activities, both the Navy
and the Air Force.
Ms. Bordallo. That is going to be the second part of my
question. I want to know exactly the numbers. I would encourage
the Navy to include HUBZone requirements and local preferences
in its contracts related to the buildup as the process moves
forward.
And I believe that the set of sites provided for by the
HUBZone programs could help Guam small business successfully
compete for contracts during the buildup.
First, Mr. Lujan, can you describe how the HUBZone
designation has benefited business on Guam so far? And second,
can you describe whether you believe HUBZone certified small
businesses are more competitive in the Federal marketplace than
those companies that are not so certified?
Mr. Lujan. Well, several years ago when we first started,
there was zero. There were no HUBZone companies that were
eligible for military contracts here in Guam.
As a result of your assistance and your legislation that
help push through HUBZone activity, we've seen a vast
improvement upon it. Again the contracting activities are happy
with it, both from the subcontracting and contracting, prime
contracting submissions. Also, they are also satisfies with the
quality of work that's being submitted there.
So, there are opportunities out there for small businesses,
and we have seen a vast improvement upon it.
Ms. Bordallo. Just off-hand can you give me the number of
businesses now doing a certified HUBZone, businesses that are
doing business with the military as of today?
Mr. Lujan. As of today, there's approximately about,
probably about 20 contracts that have been made by the above.
Ms. Bordallo. Oh. Very good. All right.
The next question I have is for General Bice. As I
mentioned in my opening statement, I believe close coordination
and integration of appropriate parties from all levels of
government and private industries crucial to the successful
buildup. I want to ensure that all parties have appropriate
levels of access to and input into the studies that will shape
the buildup.
How is the Department of Defense integrating local
government and business leaders into the EIS and the Guam
Master Plan studies? And, second, is the Department of Defense
using the Interagency Group that recently met in Washington,
D.C., as the primary mechanism for coordination in integration,
and what can Congress do, if anything, to support your
coordination with other Federal agencies in the local
government?
General Bice. Thank you, ma'am, for the question.
As far as coordinating with agencies, the EIS study will
look at a wide range of information, from reference
information, from existing Environmental Impact studies that
the Air Force, the Navy, has already done here, as well as
consulting with local leaders, local business communities,
academia, and experts in the respective field.
So, the EIS is a thoroughly researched and developed
document, taking into account all the experts, primary locally
here, who can address the impact for this military buildup.
As far as the interagency, we do see a prime role for the
interagency to play, because as I've stated before, this is not
just a military action, it is a Federal Government action, and
that we need to support of all the Federal agencies and
departments in helping us to make this a success. And I was
glad to see that the meeting that Secretary Cohen and I co-
chaired, that we had a response from just about every
department agency in the Federal Government in Washington, as
well as a large contingent from the Government of Guam and the
Task Force Commander to. So we are pleased to see that, and we
think that's critical.
Ms. Bordallo. Thank you.
General, this is a rather difficult question, but I'm going
to ask it anyway. Can you give us some idea of the extent of
assistance you are giving our local government outside the gate
during this military buildup?
I mean, certainly----
General Bice. Yeah.
Ms. Bordallo --you know, a lot of people are very
concerned.
General Bice. Yes. And I certainly understand that there
are a lot of questions. We have a lot of questions, as we do
our planning.
The National Environmental Protection Act requires a
deliberate process to go through as we do our planning. It
requires that studies and analysis precede any sort of
decision-based planning that we go through. So up to this
point, we have been relying heavily on the analysis done by the
experts in addressing the impact on a community to potential
options. And we will be developing a, what we call a
diagrammatic plans, within a month. These are bubbles, if you
will, on a map that show the potential way down, and within
that, may have different options. From that, we will come up
with feasible alternatives that will be developed by November
this year. And then from that again, we will come up with a
planning level master plan by July of next year.
So, this is a process. I understand the frustration, but
believe me, I would like to see the outcome just like anyone
elsewhere. But the law requires us to follow through a
deliberate process to make sure that we take everything into
account before we start deciding anything.
Ms. Bordallo. Thank you, General.
Thank you, Madam Chair.
Mrs. Christensen. Thank you, General Bice.
As you develop that plan, when the plan is in draft, before
it comes final, do you then come back to the Government of Guam
and the public before it becomes a final document?
General Bice. Thanks for that question, Madam Chair.
Our master plan has to dovetail in closely with the Guam--
the Government of Guam's master plan. They currently, as you
undoubtedly hear, they currently are also in a master planning
process, and that our master plan and their master plan has to
build together, because we share the same rose, we share the
same infrastructure. And so we cannot do our planning
independent of theirs, neither can they do their planning
independent of ours. So we will be closely coordinating and
dovetailing our respective plans.
Mrs. Christensen. OK.
You know, we hear a lot about the $10 point-something
billion dollars. Can you tell us about the $6.02 billion that
the Japanese are proposing to put in and the $4-plus billion
from the U.S.? Are they dedicated to specific projects, or is
there some flexibility that could enable other local projects
to use some of that funding?
General Bice. Thank you, Madam Chair, for that question.
The Japanese are committed to provide a little over $6
billion in funding in support of this military buildup. $2.8
billion worth of that is established in--what we will call a
Japanese direct funding. That's cash that the DIACT and the
Government of Japan will provide to the United States for the
building of operational facilities, that is headquarters
elements----
Mrs. Christensen. So, it is a dedicated that the funding is
dedicated to that----
General Bice. Dedicated to the military, operation
facilities, as well as barracks, and (unintelligible), mess
halls, and that.
Now 3.29 billion of that is established in, what we would
call, is often called, Special Purpose Entities, and there's
two parts of that. One part is housing, and that includes $2.55
billion for homes, right approximately 3500 homes that we are
talking about. And then the $740 million in Special Purpose
Entities, it would cover the upgrades to utilities that would
support the military move. And the utilities we are talking
about was a power, water, wastewater, and solid waste
management.
Mrs. Christensen. Can you dispel the notion that there is a
secret plan for where to house the Marines, and are you being
totally open with the public on these issues? There seems to be
some sense that there's a secret plan that no one else is--that
is not being shared. And I realize there may be some security
issues, but in terms of the housing of the Marines, is there
some kind a secret plan?
General Bice. No. No, ma'am, there's no secret plan.
Of course, we are looking at Department of Defense lands
first, and, you know----
Mrs. Christensen. In terms of housing the Marines----
General Bice. In terms of----
Mrs. Christensen.--you will be discussing it with the
government and the public.
General Bice. Yes, ma'am.
In terms of lay down, we are looking at DOD lands first,
and that's where our study started. And then if it is
determined that we need other lands, then we will look for
that.
We've been approached by landowners on Guam about using----
Mrs. Christensen. And those would be lease or purchase. You
would look to lease or----
General Bice. To an acquisition program.
And we have been----
Mrs. Christensen. And that would be at fair market value?
General Bice. Yes, ma'am.
Mrs. Christensen. Thank you.
I have a question that I wanted to ask Mr. Lujan as well.
With regard to the Defense Federal Acquisition Regulation, I'm
concerned and there's a lot of concern on Guam that the small
businesses or the businesses that are located here get first
preference for work to be done here. And based on your
testimony and your description of what that regulation is
affirmed and from anywhere can move to Guam today and meet a
two-year requirement, be classified as a U.S. firm and compete
on equal footing with a Guamanian company for the work?
Mr. Lujan. Yes, ma'am, that's correct.
Mrs. Christensen. And is there any--do SBA rules or
regulations preclude giving preference to companies who've been
here longer or which are local over someone that's just been
here for two years to qualify?
Mr. Lujan. Thank you for the question, Madam Chair.
Unfortunately, because of the way DFAR regulations are
outlined, there won't be any preference given to any local
companies here, per se, which is the reason why we continuously
look for opportunities for veteran-owned businesses, women-
owned businesses and minority-owned businesses. And we try to
get them into the 8(a) Programs so that we could set aside some
of these fundings and perhaps also get them into HUBZone----
Mrs. Christensen. So, you're going to try to, in the time
that we have, to make them more competitive for the projects
that will be coming online?
Mr. Lujan. Correct.
The fastest way of a fast track avenue is to go to through
programs that we have currently in place as policy. Any
deviation of that policy would create probably delays in the
process, which would also ultimately become a delay for small
businesses as they're operating their business here locally.
Mrs. Christensen. Congresswoman Bordallo, do you have
another question that you--(pauses).
OK. I'll ask my last and then I'll turn to you for your
last, and we will have questions submitted in writing to the
panel for your responses for the record.
During the brief with Administrator Finch--Admiral French
and--French, and your staff on the issue--this is to General
Bice, the issue was raised regarding the distribution between
military personnel stationed and deployed and how such
distinction captures or misses taxes which could be collected.
As part of the planning process, is the military or is DOD
willing to be creative on issues such as taxation of military
personnel and taxes so that in some ways could possibly offset
some of the impact caused by the buildup, so that--are you
willing to look at creative ways?
I understand that in sports, for example, some states may
capture taxes and the team that plays there just for that one
game. Are you willing to look at ways that the Government of
Guam could capture some more of those taxes to assist them in
preparing for this buildup?
General Bice. Thank you, Madam Chair.
We've been asked that question or related questions to
that. I'm certainly not the person to talk about creative ways
for taxes at this point. But certainly we will make all of our
information known to the Internal Revenue. We've met with
Internal Revenue and the Guam Revenue and Tax. We will make all
the information known to them as to what we plan to do.
There will be permanently stationed service members, and
their families are coming here. There will continually be
deployed units coming in here, and they may be here for days
and weeks and months. And I'm not certain I understand what all
the ramifications from a tax perspective would be on that, but
the military still plans on continuing the permanently
stationing and deploying of forces in here, transiting of
forces in here, and the like.
Mrs. Christensen. Thank you. We will probably follow up on
that question in writing.
I now recognize Ms. Bordallo for her questions.
Ms. Bordallo. Thank you, Madam Chair.
This question goes to General Bice. The Government
Accountability Office and the Department of Defense have both
released reports that reveal contaminants exist in the drinking
water supply and in the water and soil on Guam. As the
Environmental Impact Study moves forward, to what extent will
the EIS take cleanup of existing contaminants in the water and
soil into account? And second, will any of the buildup cost go
to addressing current environmental mitigation requirements?
I am concerned because I have heard through testimony from
the GAO at a recent House Armed Services Subcommittee on
Readiness, which I'm member, hearing that the Department of
Defense has identified nationwide over $32 billion in
environmental restoration requirements at active installations,
BRAC, which certainly would include Guam, and formally use
defense sites. And with actual funding levels requested well
below the overall identified mitigation requirements, how can
we be assured on Guam that our environmental challenges will
not be worsened, but rather mitigated as a result of the
buildup?
General Bice. Thank you, Congresswoman Bordallo, for that
question.
We have just started our water utility study on Guam, and
that is a concern in terms of looking at the water, the
aquifer, the leakage of salt water into the aquifer. You know,
that is a concern and will be addressed in the Environmental
Impact Study.
What the outcome on that would--I can't predict it at this
point. But it is a concern, and if there's mitigation required
in terms--because we have to make sure that the water is clean
and pure for the military buildup.
Ms. Bordallo. To everyone.
General Bice. So, that will be addressed, and if there are
other actions required, why, that's going to have to be
established.
I think that's separate from the issues that you're
addressing in terms of environmental cleanup. There are
environmental cleanup issues here on Guam, as well as
nationwide. And that's being addressed separately as part of
the, as I understand, the superfund program there.
As we go through our environmental analysis, if we find, in
terms of a lay down site that requires environmental mitigation
because of the contaminants in that, that's certainly going to
be addressed as part of our action.
Ms. Bordallo. Well, I'll be monitoring that, General Bice.
Also, and one last question. Later today, Mr. Benny San
Nicolas, representing the two Soil and Water Conservation
Districts here on Guam, he will testify to the strong interest
of opening up access to the military marketplace for locally
grown farm products.
In what ways is the Department of Defense oriented toward
procurement of fruits and vegetables from our local farmers?
What can be done in this area, and how can we work together to
ensure such interests are explored and goals realized?
General Bice. Well, ma'am, having been a former Base
Commander, I know that in our procurement process, we are
always looking to buy locally, especially when it comes to
produce and vegetables and the like there, because it is
better, it is more healthy, more wholesome, and it is good for
the economy.
Certainly I can't speak for what commanders would be doing
in the future, but my suspicion is that they will continue that
practice. And, again, it is good for the members of the
services and the local economy as well.
Ms. Bordallo. Thank you, General, and I'll be monitoring
that as well.
Thank you, Madam Chair, and I yield back.
Mrs. Christensen. Thank you.
I want to thank the witnesses for their valuable testimony
and the members for their questions and for your answers.
Members of the Subcommittee may have some additional
questions, as I said earlier, for the witnesses and we will ask
you to respond to these in writing.
Mrs. Christensen. At this time, this first panel is
dismissed with our thanks, and I'd like to recognize the second
panel of witnesses and thank them for their patience.
The second panel of witnesses are, The Honorable Felix P.
Camacho, Governor of Guam; The Honorable Mark Forbes, Speaker
of the 29th Legislature of Guam; The Honorable Judith T. Won
Pat, Minority Leader of the 29th Legislature of Guam; The
Honorable Melissa Savares, Mayor of Dededo and President of the
Mayors' Council of Guam; and Mr. Simon Sanchez, Chairman of the
Consolidated Commission on Utilities.
Mrs. Christensen. Thank you Governor, and I now recognize
you, Governor Camacho, to testify for five minutes. Please know
that your written testimony will be in the record, and feel
free to speak from your testimony or----
Governor Camacho. OK.
Mrs. Christensen --from just off the top of your head if
you wish.
Governor Camacho. All right, thank you.
STATEMENT OF THE HONORABLE FELIX P. CAMACHO,
GOVERNOR OF GUAM
Governor Camacho. Well, good morning Madam Chairwoman and
members of the Committee. Thank you for inviting me to testify
on the military buildup and the opportunities, issues, and
challenges facing our community.
Madam Chair, I also thank you for holding this hearing on
Guam. I understood from last night that this is the first
Committee Hearing on Guam since 1978. And so it is so
significant to better understand the needs and concerns of what
I consider to be the single most important issue for us since
our liberation in 1944.
As you are well aware, we are poised to receive a
significant increase of U.S. military assets over the next
decade. The patriotic people of Guam stand in full support of
this positive growth in our part of the Western Pacific. But
this growth should not happen just inside the military fence
line.
Guam's population is expected to increase from 168,564,
which was a population in 2005, to an estimated 180,000-plus by
2010, without factoring any increase to the military
population. Due to the normal increase, I have directed capital
improvements throughout our island, civilian infrastructure,
specifically in locations expected to develop more rapidly in
light of the expansion as identified by military planners.
Power generation, clean water, wastewater, infrastructure,
sanitary landfill, modern roads, our seaport, otherwise known
as the Port Authority of Guam, improved social services, and
labor, such as required skilled workers, are all priorities of
this GovGuam initiative.
The Government of Guam has estimated the cost for
infrastructure upgrades for our local infrastructure at roughly
$1.1 billion, but as an isolated U.S. Territory, dependent on
military and tourism, we are facing a monumental challenge in
funding the required infrastructure upgrades on an accelerated
time frame. The individual agencies within the Government of
Guam are seeking all available funding to support these
projects.
The Government of Guam is also taking cost-cutting measures
and other approaches to maximize limited funding of
opportunities, including public-private partnerships. And for
that reason, public sector involvement and infrastructure
projects, such as power, water, wastewater, solid waste, port
facilities, is anticipated.
I am encouraged that the IGIA Working Group on Military
Expansion convened recently at my request, and I thank the
members of this Committee for your participation in Washington,
D.C. The working dialogue that we had guides the Government and
the island's military command in understanding what is needed
to respond to this tremendous growth and the impact to our
community.
Critical milestones negotiated between the Governments of
Japan and the United States, and embedded in the bilateral
agreements, have created an externally driven sense of urgency
for Guam, for the U.S. Department of the Interior, and other
executive branches, branch agencies. The sense of urgency may
be contributing to, what we may consider at times, a lack of
consideration to the rights of the people of Guam affected by
this Department of Defense initiative.
As Governor, I acknowledge that there are many issues and
challenges, key decisions and others, that face Guam, some
challenges of which are not the responsibility of the
Department of Defense. However, funding for direct and indirect
costs associated with the move of the 3rd Marine Expeditionary
Force to Guam must be addressed and resolved as soon as
possible.
It is in everyone's interest that the military expansion be
implemented so that the outcomes achieved are sustainable, both
physically, socially, and for the foreseeable future. An
integrated, holistic approach that considers the Government of
Guam's utility and social services, as well as the military
value of our island, is crucial. This holistic approach, one
that integrates the needs of both the military and the island,
should not be significantly more expensive than an inside the
fence approach, but the returns, for all stakeholders, will be
much greater.
The military expansion for Guam is simply this: A restored
confidence in our island and the acknowledgement of this
strategic geopolitical role that Guam plays in and the global
realignment of the Unites States Military Forces.
In closing, Madam Chairwoman and members of the Committee,
military expansion for Guam means progress. Military expansion
means a strong economy that is poised for sustained growth
alongside our core industries of tourism and transportation.
The move of the U.S. Marines to Guam and the buildup at our
current bases means a more developed local workforce, greater
opportunities for our people, and a future of unprecedented
prosperity.
Guam is transforming into the Asia-Pacific Rim's center for
Asian-American trade and the tip of the American military spear
in this part of the world. However, in order for all of this
growth to be mutually beneficial, the Territory of Guam, our
people, must be viewed as relevant and important stakeholders,
equal partners, as key decisions and challenges are addressed.
The community of Guam will be impacted. I want to ensure,
as Governor, that this military buildup will be positive,
beneficial, and sustainable for decades to come. This is one
community, both civilian and military combined, that is
dynamic. It is ever changing, and we all seek to make the best
of our opportunities where America's day begins.
And with that, I thank you for your attention. Thank you.
Mrs. Christensen. Thank you, Governor.
[The prepared statement of Governor Camacho follows:]
Statement of The Honorable Felix Camacho, Governor of Guam
Madam Chairwoman and Members of the Committee, thank you for
inviting me to participate in your hearing on the military buildup on
Guam and the challenges facing our community. My name is Felix Camacho;
I am the Governor of Guam. My testimony today is to present Guam's
perspective of the challenges that will accompany the military's
activities here.
Madam Chair, I would like to express my appreciation to you and to
the members of the Committee for holding this hearing here in Guam to
better understand the needs and concerns of the single most important
issue for the people of Guam since the Liberation of Guam from Japanese
occupation in 1944.
As you are aware, the Territory is poised to receive a significant
increase of U.S. military assets over the next 10 years. From the $1
billion in activity at Andersen Air Force Base in Northern Guam to the
$1 billion in projects at U.S. Naval Station Guam in the South and the
planned $10 billion move of the 3rd Marine Expeditionary Force from
Okinawa to Guam, the patriotic Americans of Guam stand in full support
of this positive growth in our part of the Western Pacific.
But this growth will not just and should not happen inside the
fences of the military bases.
According to U.S. Census Bureau estimates, Guam's population is
expected to increase from 168,564 in 2005 to 180,692 in 2010, without
factoring any increase to the local military population by the U.S.
Department of Defense. Due to the normal increase, I have pushed the
Government of Guam to begin the process of directing capital
improvements throughout our island, specifically in those locations
expected to develop more rapidly in light of the expansion as
identified by military planners. Clean water and waste water
infrastructure, power generation, a sanitary landfill, modern roads and
improved social services are all priorities of this effort.
The Government of Guam has estimated the costs to support the
military buildup at an estimated $1.1. billion. But as an isolated U.S.
Territory, dependent on military and tourism, we are facing a
monumental challenge in finding this funding on an accelerated time
frame and under a sense of urgency.
I commit to each of you that the individual agencies within the
Government of Guam continue to seek all available funding sources to
support projects that will improve the quality of life for all
residents, both military and civilian alike. The Government of Guam
also is taking cost-cutting measures and other approaches to maximize
the limited funding opportunities afforded the island as a U.S.
Territory--including but, not limited to, public-private partnerships.
As I stand before you here, I am encouraged by the fact that the
Interagency Group on Insular Areas Working Group on Military Expansion
convened recently at my request. The U.S. Department of the Interior
Office of Insular Affairs, in cooperation with the U.S. Department of
the Navy Joint Guam Program Office and the U.S. Department of Defense,
leads this group. I want to take this opportunity to thank each of the
members of the House Subcommittee on Insular Affairs for your
participation in the first meeting of this working group. We must seek
more opportunities to see representatives from the executive and
legislative branches of our great nation in one room to discuss the
future of Guam. Both Lt. Governor Michael Cruz and I are encouraged by
the greater interaction between the Government of Guam and relevant
federal agencies to guide the Government of Guam and the island's U.S.
military commands in understanding what is needed to respond to this
tremendous growth and the certain impacts to the Guam community now and
our future generations.
But these efforts have not been without challenges. The Department
of Defense entered into bi-lateral negotiations with the Government of
Japan, which proposed to shift significant security assets to Guam,
with little or no consideration of, or consultation with the Territory
of Guam. It appears that the Nation's and the interests of DOD took
precedence forgoing any consideration of the impact to the citizens of
Guam and this underlying attitude has permeated the relationship
between DOD and the Government of Guam to date.
Critical milestones negotiated and agreed upon between the
Government of Japan and the United States, and embedded in the bi-
lateral agreements, have created an externally driven sense of urgency
for Guam, the U.S. Department of the Interior and the other executive
branch agencies. This sense of urgency may be contributing to this lack
of consideration of the rights of the people of Guam affected by this
DOD initiative. This approach could set up a situation to see us fail.
This is unacceptable.
As Governor, I acknowledge there are many challenges that face
Guam-challenges that are not the responsibility of DOD. However, I
expect DOD to underwrite the costs directly and indirectly associated
with DOD driven requirements for the move of the 3rd Marine
Expeditionary Force to Guam. We cannot be expected to cover unfunded
federal mandates or other substantial requirements of this military
expansion. We have seen the effects of such mandates in other federal
programs.
It is in the best interests of the Nation, the Department of
Defense and the people of Guam that the military expansion be
implemented so the outcomes achieved are sustainable, both physically
and socially, for the foreseeable future. An integrated, holistic
approach that considers the people of Guam, our rights, our health and
our well being as well as the military value of our island is crucial.
This holistic approach, one that takes into account that DOD's
unprecedented expansion is being undertaken in this patriotic American
community and one that integrates both the island requirements and the
military requirements should not be significantly more expensive than
an ``inside the fence'' approach, but the returns, for all
stakeholders, will be much greater.
Ladies and Gentleman-The military expansion for Guam is simply
this: a restored confidence in Guam and the strategic importance of
Guam in protecting the security of the United States of America.
We have seen great examples of this over the past four years. In
that time, there have been numerous carrier and battle group visits as
well as increased interaction with foreign armed forces, including
China and Australia. This fiscal year alone, Congress has appropriated
more than $193 million for military construction activities on Guam.
That number is expected to rise to the billions of dollars a few short
years from now.
This will greatly add to the forward deployed assets that are
already on Guam to cover an area twice the size of the continental
United States.
The activity will complement those assets soaring above the skies
of our beautiful island, including forward deployed B-1 and B-2
Bombers. We will welcome the Global Hawk Strike Force and a Rapid
Engineer Deployable Heavy Operational Repair Squadron Engineer (RED
HORSE) Squadron.
Joint Military Exercises conducted on Guam by all branches of
service and the Australian Royal Navy, Royal Malaysian Navy, Peoples
Republic of China Army/Navy, Russian Federated Navy, and Republic of
Korea Navy will continue this year and beyond. These assets and
activities will do much to ensure the security of Micronesia and the
Pacific Rim.
As I stand here, I must reflect on the fact that all of these
interactions could not have been possible without our efforts to bring
Washington to Guam.
Former Secretary of Defense Donald Rumsfeld, Chairman of the Joint
Chiefs of Staff, General Peter Pace and numerous congressional
delegations including you who are here today have come to Guam to see
for themselves Guam's role and the challenges of a patriotic people who
stand with America in the defense of democracy.
Summary
Madam Chairwoman and members of the Committee, military expansion
for Guam means progress. Military expansion means a strong economy that
is poised for sustained growth alongside our core industries of tourism
and transportation. The move of the U.S. Marines to Guam and the
buildup at our current bases means a more developed local workforce and
the benefits will include higher paying jobs filled by a skilled,
educated local workforce that is skilled and educated.
Guam is a safe American community and is transforming into the
Asia-Pacific Rim's center for Asian-American trade and the tip of the
American military spear in this part of the world. However, in order
for all of this growth to be mutually beneficial, our island, our
community and our people must be viewed as relevant and important
stakeholders-equal partners-as we embark on transforming Guam into one
community which will transform our island paradise forever.
Thank you for your attention. I am pleased to answer any questions.
______
Mrs. Christensen. The Chair now recognizes Senator Won Pat
to testify for five minutes.
STATEMENT OF THE HONORABLE JUDITH T. WON PAT,
MINORITY LEADER, 29TH LEGISLATURE OF GUAM
Senator Won Pat. Hafa Adai.
My name is Judith Won Pat, Senator and Minority Leader. I'm
actually going to read Version 5 of my testimony. I must state
my disappointment however, that the local community are not
invited to testify this morning.
Before I begin to speak on the impact of the relocation of
Marines from Okinawa to Guam, I would be remiss if I failed to
address two issues of paramount importance to the people of
Guam that has yet to be resolved--that of political status and
war reparations.
I won't belabor the issue, but just to say that on
political status, there is a need for Congress to support and
fund the local effort for Chamorros to finally determine their
own political destiny.
On the issue of war reparations, we are elated that the
World War II Loyalty Recognition Act has made it to the U.S.
Senate. The Guam War Claims Review Commission, established by
Congress, found that the U.S. has a moral obligation to pay
proper compensation for war damages, that there is a lack of
parity and war claims for Guam when compared to other war claim
programs established by the U.S. Congress, and that Guam was
erroneously excluded from coverage under Title II of the War
Claims Act.
I hope Congress would do the right thing and pass this very
important legislation for the people of Guam and finally bring
closure to this dark chapter in Guam's history.
Many would say that they do not oppose the military
buildup, but they have concerns. My hope is that this hearing
will convey to Congress the frustration and anxiousness that
their fellow Americans in Guam feel about the coming military
buildup and to recognize the need to include Guam and their
leaders in the full scope of any discussion regarding the
buildup.
Five minutes is not enough to adequately cover every impact
from the military buildup, but I will discuss a few. Guam is
barely able to provide the necessary infrastructure to meet the
requirements of the current community. Our water and power
systems are at near capacity. Our roads are in need of repair.
There is an immediate need to close Ordot dump and to open a
new sanitary landfill, and our only civilian hospitals has been
struggling to meet the needs of the current population. In
addition, imported labor will be needed to complete
construction projects.
Job seekers from the Freely Associated States by virtue of
the Compact will no doubt want to come to Guam to seek
employment, independent contractors from the mainland, and
other entrepreneurs looking for a quick buck. In the final
analysis, we may see a population growth of up to 50,000
people. How would Guam deal with this explosive growth with an
already overburdened infrastructure?
Infrastructure and healthcare are basic quality of life
issues, contrary to the U.S. Pacific Commands Pacific Fleet
Fiscal Year 2008 budget, where there's a request under the
quality of service category for $45 million for a new fitness
center, and a $5 million dollar appropriation to Andersen Air
Force Base to provide air-conditioning for animal kennels at
$120,000 per kennel.
I'm not asking for a new gym or for air-conditioned animal
kennels. I'm asking about--I'm talking about investments on
Guam for basic quality of life projects, bare necessities for
any community.
The introduction of so many new people to the island in a
relatively short span of time will further accelerate the
erosion of language-tradition in the Chamorro culture.
Assistance by the Federal Government to Guam by providing
funding and expertise in the areas of anthropology and culture
preservation will be essential to ensure that the rich culture
and language of the Chamorro people do not become extinct.
The population increase will further dilute the Chamorros,
who eventually become the minority in their own land. A
scholarly, unbiased study needs to be undertaken.
The separation of Guam Public Schools and the Department of
Defense School has created a social separation among our
children. Although the interest in establishing the best
learning environment possible for children is understandable,
the manner in which this has been pursued, whether right or
wrong, has been divisive rather than unifying, factional rather
than integrated. This is compounded by the migration of our
teachers to the DODEA system for higher pay and cost of living
allowances. This backwards policy flies in the face of the good
works done by great Americans, such as Martin Luther King and
President Kennedy, who fought for equality in education
regardless of a child's color, religion or creed.
It was President Truman's order in 1949 to desegregate the
U.S. Military that necessitated the creation of Defense
Department schools in the American south, whose schools were
largely segregated, ironically. What the military in Guam is
doing with DODEA seems like a huge step backwards for civil
rights. The millions of dollars spent on Guam DODEA School
should be instead used to bolster the local educational system
and help us turn it around so it can benefit all children on
Guam, civilian or military. A single integrated school system
with a pool of resources, financial and personnel, supported by
both the local and national government, is a possible and
plausible alternative.
Several Senators and I had the opportunity to visit Okinawa
since they have faced many of these similar issues. Naturally,
we look to them for answers regarding impact of the buildup,
absent any information from our own Federal Government and
military. The government of Japan has for some time understood
the impact of the U.S. Military in Okinawa and has funded
millions of dollars to Okinawa since the reversion to lessen
the burden of the military presence. We seek the same action by
our Federal Government.
There have been many discussions about Guam being the Tip
of the Spear and that Guam is of the highest strategic value
and of great importance to the mission of the United States in
regional security and national defense. As a U.S. Territory so
far removed from the mainland, oftentimes our issues and
concerns fall on deaf ears. This is why this Oversight Hearing
on Guam means so much to the future of our island. It will be
decisions made in Washington, D.C., and not on Guam, that will
determine the direction of Guam for decades to come.
In closing, in a joint press conference with Defense
Secretary Rumsfeld and Defense Japanese Minister Yoshinori Ohno
in 2005, Rumsfeld stated that the move was, and I quote,
``designed to enhance the alliance's capability to meet new
threats and diverse contingencies and, as a whole, will reduce
burdens on local communities,'' end of quote. What about the
burden on Guam?
Last, on behalf of the people of Guam, I ask that the town
hall meeting be moved to the community.
Si Yu'us Ma'ase and thank you.
Mrs. Christensen. Thank you, Senator.
[The prepared statement of Senator Won Pat follows:]
Statement of The Honorable Judith T. Won Pat,
Senator and Minority Leader, 29th Guam Legislature
A warm Hafa Adai to The Honorable Chairwoman Donna Christensen and
members of the Subcommittee on Insular Affairs, my name is Judith T.
Won Pat senator and minority leader. I am speaking today on behalf of
the minority senators of the 29th Guam Legislature, Senators Rory J.
Respicio, Vicente ``Ben'' Pangelinan, Adolpho Palacios, Tina Muna-
Barnes, Dr. David Shimizu, and Dr. Judith P. Guthertz.
Thank you for the invitation to testify in today's oversight field
hearing on the ``U.S. Military Buildup on Guam and the Challenges
Facing the Community.'' I commend Chairwoman Christensen for holding
this hearing on Guam and I hope this will be the first of many
congressional oversight field hearings that will be conducted on Guam
which will allow the civilian community to voice their opinions about
the military buildup.
Before I begin to speak on the impact of the relocation of marine
from Okinawa to Guam, I would be remiss if I fail to address two issues
of paramount importance to the people of Guam that has yet to be
resolved; that of political status, and war reparations. I won't
belabor the issue but just to say that on political status, there is a
need for Congress to support the local effort for Chamorros to finally
determine their own political destiny.
On the issue of war reparations, we are elated that the World War
II Loyalty Recognition Act has made it to the U.S. Senate for their
consideration. To reiterate the findings of the Guam War Claims Review
Commission established by Congress, the Commission found that; the U.S.
has a moral obligation to pay proper compensation for war damages, that
there is a lack of parity in war claims for Guam when compared to other
war claims programs established by the U.S. Congress, and that Guam was
erroneously excluded from coverage under Title II of the War Claims
Act. With continued persistence and hard work on this issue, we hope to
finally close this dark chapter in Guam's history
Our island, in the coming decade, will see a significant increase
in our military and overall population with the arrival of Marines from
Okinawa and their families. Not since the end of World War II has Guam
experienced such a dramatic increase in military personnel. But unlike
the post WWII buildup on Guam, we are in a much better and able
condition to be active participants in the coming buildup. We envision
a process in which the local government can be joint partners and where
civilian community input will be taken not only into consideration, but
be an integral part in the eventual decisions made.
I do not oppose the military buildup or the movement of marines
from Okinawa. My adamant objection is to the way that Guam has been
treated so far in this very important, significant, and far reaching
military buildup planning process. Why are the people that stands to be
affected the most by this buildup are left out of the decision making
process?
To this day, we have been given little or no information as to the
allocation of the billions of dollars that have been committed to the
buildup on Guam. A discussion of socio-economic implications of the
move and the possible immediate, latent, and residual impact on the
quality of life on Guam has not even been discussed. Clearly Guam's
social, cultural and environmental resources will be impacted by
decisions made by the military, and it should be recognized that there
exist an obligation by the military to provide as much information and
resources to the island to allow Guam leaders an opportunity to prepare
and plan in anticipation of the military buildup. My hope is that this
hearing will convey to Congress the frustration and anxiousness that
their fellow Americans on Guam feel about the coming military buildup
and to recognize the need to include Guam and their leaders in the full
scope of any discussion regarding the buildup.
There are four main topics that I wanted to cover in my testimony.
They are infrastructure, economic impact, social impact, and education.
INFRASTRUCTURE
Guam, with a population of about 170,000 people, is barely able to
provide the necessary infrastructure to meet the requirements of the
community. Our water and power systems are at near capacity; our roads
are in need of repair; there is an immediate need to close Ordot dump
and to open a new sanitary landfill, and our only civilian hospital has
been struggling to meet the needs of the current population. Imagine
the impact of additional military personnel and support staff and their
families totaling 30,000 people on our ailing infrastructure. A growth
of 30,000 may just be the beginning. In addition, imported labor will
be needed to complete construction projects, job seekers from the
Freely Associated States by virtue of the Compact will no doubt want to
come to Guam to seek employments, independent contractors from the
mainland, and other entrepreneurs looking for a quick buck. In the
final analysis we may see a population growth of up to 50,000 people.
How will Guam deal with this explosive growth with an already
overburdened infrastructure?
In the coming years, the landfill at Andersen Air Force base will
have reached its capacity and will have to be shut down. The landfill,
run by the Navy, is also reaching capacity and has been rumored to be
contaminated and toxic. So far we have not seen any plans by the
military on what their intentions are after they close their landfills.
With the influx of marines in the coming years, it will only hasten the
closures of these landfills.
The hospital is another concern. A real measure of how well we can
provide for our sick and disabled population is the ratio of hospital
beds per 1,000 population. Our only civilian hospital the Guam Memorial
Hospital currently has a 208 bed capacity, meaning that the ration on
Guam is 1.2. The U.S. National average is 2.8 beds per 1000 population.
The potential population boom in the next decade by the military
buildup would eventual drop that ration to less than 1 bed per 1,000
persons.
In the U.S. Pacific Command's Pacific Fleet FY08 budget, there is a
request under the quality of service category for $45 million for a new
fitness center. While we applaud such a request for military personnel,
we have to recognize that this request only benefits those inside the
fence. That same $45 million invested in our local hospital would not
only help GMH come up to par with national standards but would also
allow them to better serve the local and military community.
Any improvement to the infrastructure by the government of Guam
benefits the entire island community. Can we say with certainty that
the improvement made by the military on Guam will benefit both the
military and the island community? Without any information from the
military, we cannot plan properly for the buildup.
ECONOMIC IMPACT
While the potential economic grain as a result of the increase in
defense personnel and spending are welcomed, we also need to examine
the potential economic imbalance created by the huge increase in the
population.
Military personnel stationed on Guam currently receive overseas
housing allowances ranging from $1,200 to $5,000 and more depending on
their rank and marital status. This is much higher than the housing
budgets of most residents locally. If even only a small fraction of the
military personnel take advantage of these allowances, the cost of
rental units on Guam will skyrocket, effectively increasing costs for
Guam residents and pricing them out of the local rental market.
Runaway inflation and an increase in the cost of living will become
a problem for current residents of Guam. Already we have seen prices of
utilities, healthcare, and fuel increase at an alarming rate with no
relief in sight. With the increase of military personnel to the island,
who for the most part are well compensated, this imbalance will only
serve to increase the cost of living on island, create a situation of
uncontrolled inflation, and further widen the gap between the rich and
the poor. This will mean increasing the amounts of money the government
will have to spend on welfare programs.
Current shortage of teachers, doctors, nurses, laborers, will be
compounded by a 20% overnight growth in population. No community in the
United States has ever faced such an unprecedented growth. Such
unprecedented occurrence should be met with unprecedented assistance
from the Federal Government and the U.S. Military.
SOCIAL IMPACT
The social impact of 30,000 new people on the island needs to be
studied. There has been little research about the social impacts on the
local populations and their responses to them. Gender issues for
example need to be examined. How does the military buildup affect rates
of prostitution, rape, and other violence against women, as well as the
participation of women in the workforce and corresponding wage rates? A
study, along the lines conducted by the Watson Institute for
International Studies at Brown University, needs to be undertaken with
a direct focus on the movement of military personnel, their families
and other support staff and their immediate social impacts on the
current population on Guam.
In a joint press conference with Defense Secretary Rumsfeld and
Japanese Defense Minister Yoshinori Ono in 2005, Rumsfeld stated that
the move was ``designed to enhance the alliance's capability to meet
new threats and diverse contingencies and, as a whole, will reduce
burdens on local communities...'' What about the burden that is to be
transferred to communities here on Guam, which Defense Secretary
Rumsfeld has clearly pointed out?
EDUCATION
The military needs to end the practice of education segregation on
our island. Allowing DODEA to continue running a separate school system
perpetuates the notion that somehow the local system is not good enough
for the military community. It encourages animosity between military
and civilian families and further confirms the existence of two
communities, living on one island, under the American flag, separated
by a fence. While I concede that our education system is less than
perfect, this should never be used as a reason to segregate an American
community. This backwards policy flies in the face of the good works
done by great Americans such as Martin Luther King, and Presidents
Kennedy and Johnson who fought for equality in education for all
regardless of their race, religion or creed. The millions of dollars
spent on the Guam DODEA schools should be instead used to bolster the
local educational system and help us turn it around so it can benefit
all the children on Guam, civilian and military.
The existence of DODEA schools also exacerbates an existing problem
with shortage of teachers on Guam. Often, the teachers that are
employed at the DODEA schools come from the same pool of teachers that
GPSS depends on to teach at our local schools. It has even come to the
point that DODEA is hiring away teachers from GPSS. We can't blame the
teachers for leaving GPSS, often the choice to teach at DODEA is one of
economics. There is no way that the local government can compete with
the resources of the U.S. military, and it should not be allowed to
compete with the community.
When the military population increases, more of our teachers at our
public schools will migrate to fill the needs at the DODEA schools.
Where will that leave our public schools? Congress should be made aware
of this situation and make the necessary policy changes to assist all
of its citizens and not just those inside the gate.
There have been many discussions about Guam being the ``Tip of the
Spear'' and that Guam is of the highest strategic value and of great
importance to the mission of the United States in regional security and
national defense. There is no doubt that there will be numerous debates
and discussion both in Congress and in the Pentagon which will affect
Guam and for which our people need a voice. As a U.S. Territory so far
removed from the mainland, oftentimes our issues and concerns fall on
deaf ears. This is why this oversight hearing on Guam means so much to
the future of our island. It will be decisions made in Washington D.C.,
in part through input from this subcommittee that will determine the
direction of Guam for decades to come. All we want is to be part of
that decision making process and ensure that any negative or positive
impact on Guam resulting from the buildup be shared and the burden
carried by all that call Guam home.
Si Yu'us Ma'ase and thank you!
______
Mrs. Christensen. And now the Chair recognizes Mayor
Savares for her testimony.
STATEMENT OF THE HONORABLE MELISSA SAVARES, MAYOR, DEDEDO,
GUAM, PRESIDENT, MAYORS' COUNCIL OF GUAM
Ms. Savares. Hafa Adai, Chairman Christensen and
Congresswoman Bordallo. I am Mayor Melissa Savares, Mayor of
Dededo, as well as the President of the Mayors' Council of
Guam. As the Mayor of the most populated village on island, I
welcome the arrival of the Marines to my community.
We did have NCTS at one time as the Navy base with over 400
personnel, and now they're reduced to less than 30 active duty
personnel.
There are several villages that will be affected by the
movement of the Marines to our island. However, Dededo will see
the most activity with NCTS, South Fin Housing and the
Northwest Field areas being located within the municipality.
With this, there are several concerns that I will address
today.
The increase of vehicle traffic throughout the entire
island on our major roadways is definitely a concern by all
residents. The daily morning and afternoon commute to and from
work for most residents is on Marine Corps Drive from Naval
Station to Andersen Air Force Base. Alternative routes must be
designated to alleviate this traffic congestion on our island's
roadways. The Department of Public Works is currently working
to identify Federal highway funds to use to upgrade the
infrastructures that we currently have.
The utility services provided to current residents are
being upgraded to better serve our growing communities. The
concern that I have is that we still--the water services that
are being provided to the Navy bases, as well as the Andersen
Air Force Base, are still coming through Fena, and that's
ComNavMar operating their water services.
What about the outside community? The water services that
we get in our homes, to our villages, to our residents, will
that also be upgraded through the formation of the upgrade of
the infrastructure?
OK. We will see the increase of military personnel
utilizing not just on base. Many of them will choose to also
live off base. So, we need to upgrade the current facilities
that we also have with GWA.
The current power system is being worked on with the CCU,
and Mr. Sanchez will address that.
I would like for the military to also, like I've said, many
of them would be living off base in our own communities, and
they will be using our infrastructure as well. Exercises being
done by the Marines often take place at the Northwest Field and
the Andy South Housing Areas. Residents in the northern area of
Guam, of course, will have concerns about the times of these
exercises.
Like Senator Won Pat, three mayors also went to Okinawa
last year and observed the concerns that the local community
had with the exercises of the helicopters and the jets coming
in during the evening hours. The concern that I have is, are
the residents going to be able to sleep at night or be worried,
be waken up by the noise from the helicopters and the jets
coming in? Can these exercises be limited to a certain time and
not occur from 10:00 p.m. to 6:00 a.m. for the sake of the
nearby residents?
The families that have access to return Federal lands that
have been developed by original land owners and has been opened
back for regular traffic for several years, have businesses and
allow families to actually access their properties. One concern
is, the Route 3A access to Urunao and Ritidian, I know that
there's going to be a current upgrade in the Northwest Field.
Family members in the past had, before the return of their
lands, had to get base clearance in order to access their
properties at Urunao. Will this be restricted again and taken
away from them?
There is a resort, a business resort in the area. We don't
want the customers to the resort--not just the tourists but the
local community as well--to be restricted and have to obtain
base passes to Route 3A to access their properties.
It is evident that we will also see an increase of foot
traffic around many military bases, most specifically, around
the Naval Hospital area and the NCTS area. The concern is, will
there be infrastructure as far as sidewalks are concerned?
There will be a lot of foot traffic coming on and off base to
walk to the stores and nearby malls. Will the military, the
Federal Government help with the infrastructure as far as
sidewalks are concerned?
In addition, with the increase of residents living in our
community, first-time homeowners wanting to purchase homes in
the villages, with the population exceeding 20,000 residents,
do not qualify for USDA Home Loan Programs. I've requested
through Congresswoman Bordallo's office, back in March, that
the insular areas be exempted from that 20,000 cap.
With the expectance of 8,000 Marines and their families to
our communities, more homes are being built and of course the
prices of homes are rising, becoming less affordable for our
local families to buy. With this exemption, our families and
our communities will be able to purchase affordable homes under
the USDA Affordable Home Loan Program.
As President of the Mayors' Council of Guam, I, along with
my colleagues, welcome the Marines to our island and know that
our island and our families will benefit tremendously with the
investment of the military that the military will make on Guam.
I express with my heartfelt appreciation to the Committee
on Natural Resources for allowing us to testify on behalf of
our communities. Thank you.
Mrs. Christensen. Thank you, Mayor.
[The prepared statement of Mayor Savares follows:]
Statement of The Honorable Melissa B. Savares, President,
Mayors' Council of Guam, and Mayor of Dededo
Chairwoman Christensen and Members of the Subcommittee on Insular
Affairs,
I am Mayor Melissa B. Savares, Mayor of Dededo and President of the
Mayors' Council of Guam. As Mayor of the most populated village on the
island, I welcome the arrival of the Marines to our community.
There are several villages that will be affected by the movement of
Marine to our island. However, Dededo will see the most activity with
the NCTS, South Finegayan Housing and Northwest Field areas located
directly in the municipality. With this there are several concerns that
I will address.
The increase of vehicle traffic throughout the island on the major
roadways is definitely a concern by all motorists. The daily morning
and afternoon commute to and from work for most residents is on Marine
Corps Drive from Naval Station to Andersen Air Force Base. Alternative
routes must be designated to alleviate this traffic congestion on our
islands roadways. The Department of Public Works is working with the
federal government to use federal highway funding to open other routes
to address this traffic problem.
The utility services provided to current residents are being
upgraded to better serve our growing communities. Will the increase of
military personnel use the existing utility services provided by the
Government of Guam or will they be dependent on the services now
provided by ComNavMar? I would like for the military to use the same
utility services that we, the residents of Guam use daily in our homes.
Exercises done by the Marines often take place in the Northwest
Field, Andersen Air Force Base and Andersen South Housing areas.
Residents in this northern area of our island are concern about the
time of these exercises and if they will be disruptive during all hours
of the day. The concerns are of the helicopters and jets flying over
the residential areas in the late evening hours. I was part of a
delegation that traveled to Okinawa in July 2006 to meet with local
leaders to hear the concerns that they had in their communities. One
thing that I was concern about was the noise from the helicopters and
airplanes flying over the residential areas in the late hours of the
night. Exercises such as this should be restricted and not be allowed
between the hours of 10:00 p.m. and 6:00 a.m.
The families that have access to return federal lands that have
been developed by original land owners has been opened to regular
traffic for several years. Will this access be closed to original
landowners and businesses within the area? The area of concern is the
Northwest Field area also known as Route 3A. Before the return of
federal lands, there was a guarded sentry for landowners to request for
access to their properties. The restriction of access to Route 3A
should be allowed from 6:00 a.m. to 8:00 p.m.
It is evident that we will also see an increase of foot traffic
around all military bases. Would there be sidewalks constructed around
all bases to assure the safety of all personnel, their families and
others accessing these facilities? The concern is around the Naval
Hospital and NCTS areas. The close proximity of areas such as schools,
stores and recreational facilities will allow for more people to walk
to and from places.
As the President of the Mayors' Council of Guam, I welcome the
Marines to our island community. I know that our island and our
families will benefit tremendously with the investment that the
military will make to Guam. I want to express my heartfelt appreciation
to the Committee on Natural Resources for allowing me to testify on
behalf of the people of our community.
______
Mrs. Christensen. Now the Chair recognizes Mr. Sanchez for
five minutes.
STATEMENT OF SIMON SANCHEZ, CHAIRMAN,
CONSOLIDATED COMMISSION ON UTILITIES
Mr. Sanchez. Chairwoman Christensen and Congresswoman
Bordallo, Governor Camacho, Honorable Senators, and Mayors, and
our other distinguished guests, and my dear people of Guam,
I've had the honor to serve our people as a senator and now as
Chairman of the Consolidated Commission on Utilities. The CCU
is the elected governing board that oversees the operations of
the Guam Power Authority and the Guam Waterworks Authority.
GPA is the sole supplier of power on Guam for all civilian
and military needs. GWA provides all the water and wastewater
services to the civilian community and wastewater services to
the Air Force and NCTAMS, Guam.
Guam's planned military buildup will impact the lives of
everyone who lives on Guam, both resident and military. It will
test all of our abilities to plan, collaborate, and deliver.
We all share a historic opportunity to improve the quality
of life of all the loyal American citizens of Guam while
positioning Guam to play a larger role in the defense of our
country. Making Guam better will make our country better and
safer. The recent change in National Defense Policy will bring
an estimated $15 billion in military expansion to Guam.
Guam today does not have the resources necessary to
accommodate this expansion, nor should it be expected to.
Initial estimates suggests $1-$2 billion will be needed for
Guam to successfully absorb this military buildup. Japan has
committed $6 billion for the expansion. DOD will ask you and
the Congress to commit another $4 billion. So far, no one has
committed any funding to the people of Guam.
We have been told that none of the Japan or DOD funds may
be available to Guam outside the gate. Yet the military buildup
cannot become a new burden to Guam's current population.
I recall the decision from another seminal change in our
country's public policy, regarding racial segregation, that
reminded us that ``separate is not equal.''
It is our duty as Americans to ensure that the military
expansion does not separate local and military residents. Our
goal must be that the quality of life on Guam will improve for
all the citizens and residents, regardless of whether they work
or live in our villages or on base.
I've provided the committee with more detailed discussions
that identify almost $800 million in power and water projects
which are impacted by the military expansion. Our position is
simple. For an island of only 210 square miles, there should be
single integrated infrastructure systems providing reliable,
efficient services to all residents of Guam, civilian and
military.
GPA should continue to be the sole provider of power on
Guam. We should maintain existing Federal law that requires the
military to become a full customer of GPA and get out of the
power business. GWA should provide water and wastewater
services to the new Marine base, and eventually operate all the
Navy systems, just as GPA took over the Navy power systems.
Here's why: It will require less U.S. tax dollars to fund the
incremental cost to improve and operate single integrated
utility systems instead of building and maintaining separate
ones.
The funding needed to build and maintain a separate DOD
power system to serve only 20 percent of the total island
demand would be better spent on upgrading the entire
transmission and distribution system benefiting both civilian
and military ratepayers. GPA has the demonstrated ability to
manage the entire system, relying on its own resources as well
as using effective private partnerships to provide management
and financing. As Guam grows, more customers paying for a
single system will help keep rates more stable and affordable
for all customers. Even today, Guam's power rates are lower
than all of Hawaii. Separate power systems will only increase
cost.
GWA has successfully turned around as operating and
financial performance, recently meeting U.S. EPA's Safe
Drinking Water Standards and raising over $100 million for
improvements. GWA also utilizes a private partnership to
operate its wastewater system.
Like GWA, DOD is investing hundreds of millions to rebuild
its aging water and wastewater system. But GWA provides its
services at nearly half the cost incurred by the Navy, thus
providing an opportunity to eventually lower the cost of water
for both civilian and military residents.
GPA and GWA already are committing current ratepayer
financial resources to upgrade existing infrastructure. The
idea should be to leverage local, Federal, and Japan monies in
shared investments to upgrade and expand the utility systems to
serve Guam's future growth.
When Japan originally agreed to accept the Marine base on
Okinawa, it invested hundreds of millions to make sure its
civilian community would also benefit. We should expect no less
from our own country. America must step up and ensure that Guam
receives funding for the impacts caused by the military
buildup. When DOD stands before the Congress and ask for its $4
billion, Guam's impact needs must be addressed at the same
time. There should be no funds separately appropriated for DOD
without also funding Guam's impact needs. Separate is not
equal. Instead, let us unify our tremendous resources and
abilities and goodwill to do what is good for Guam because it
also will be good for our country.
You will find a no more patriotic, loyal and deserving
group of citizens than right here on Guam. The Americans of
Guam have always shared in the sacrifices of our country. Right
now, a Guamanian, a Chamorro, a resident of the Western
Pacific, is defending our national interest and risking their
lives throughout the world. The Americans of Guam must now also
share in the new prosperity that our new defense responsibility
protects.
Si Yu'us Ma'ase.
[The prepared statement of Mr. Sanchez follows:]
July 31, 2007
The Honorable Donna M. Christensen
Chairwoman
Subcommittee on Insular Affairs
Committee on Natural Resources
The United States House of Representatives
Washington, D.C. 20515
Chairwoman Christensen and Committee Members
Honorable Members of Congress
Hafa Adai and welcome to Guam.
I am Simon Sanchez, and I have had the honor to serve as Chairman
of the Consolidated Commission on Utilities (CCU) since 2003. The CCU
is the elected governing board that oversees the operations of the Guam
Power Authority (GPA) and the Guam Waterworks Authority (GWA). GPA is
the sole supplier of power on Guam for all civilian and military needs.
GWA provides all the water and wastewater services to the civilian
community and wastewater services to the Andersen Air Force Base.
We are very happy to be discussing the impact of our country's
planned military buildup right here on Guam where the impact will be
felt in our homes, our villages and in the daily lives of everyone who
lives on Guam, both resident and military.
The many challenges facing our community will test all of our
abilities to plan, collaborate and deliver the results and the vision
we all share for an even better Guam and a safer country.
We all share a historic opportunity to position Guam to play a
larger role in the defense of our national interests while also
improving the quality of life of all the loyal American citizens of
Guam.
It is yet another opportunity for Guam to proudly assume its new
obligations to defend our national interests, a duty our people have
performed with legendary honor and sacrifice. Even at this moment, a
Guamanian American is risking his or her life in a battle zone with our
other fellow Americans so that we can build a better Guam and a safer
country for generations to come.
It is yet another opportunity for Guam to move forward as a greater
showcase of free enterprise and economic progress, located at America's
doorstep to Asia. Guam's hard working and industrious people have
withstood war, natural disasters, and economic uncertainties. Guam's
economy, since it was destroyed in World War II, has always been tied
to the changing interests of our country's defense policy. A strong and
prosperous Guam has always resulted from a strong national defense
policy.
Guam is a special place. And this is a special time. We have a
chance to do this right for the common good.
There are those who do not support this military expansion and
there are many unanswered questions.
Our ultimate success will depend on how well we realize the
opportunities we know are possible by not letting the many challenges
divide nor conquer us.
Our country recently forged a change in national policy that asks
the good people of Guam to play an even larger role in the defense of
our nation. An estimated $15 billion in military expansion, the largest
move of military assets since World War II according to military
officials, is slated to turn Guam into the ``spear'' for our country's
defense in Asia.
The concern of the people of Guam is that we don't get the
``shaft'' while also becoming the spear.
The relocation of Marines from Okinawa to Guam as well as the
expansion of the existing Navy and Air Force presence will change Guam
dramatically. It will add twenty five percent more people to Guam in
the next six years, about 40,000 folks.
Normally, this amount of population growth would take twenty years.
Now we must accelerate all the projects and efforts that will be
required to absorb this growth in a compressed six year timeline.
Remember, of the 40,000 new residents, half are projected to live
``outside the gate'' in the civilian community. The military expansion
will not only affect Guam's military community. It will affect all the
people of Guam for the foreseeable future.
Guam today does not have the resources necessary to accommodate
this level of military expansion nor should it be expected to. Initial
estimates are between $1 billion to $2 billion will be needed for Guam
to successfully absorb this military buildup in such a short time
frame.
Japan has committed funding to the base relocation to Guam. The
Congress already has committed funding to upgrading and expanding
existing military facilities on Guam. It is our understanding that the
Department of Defense (DOD) will ask Congress to commit anther $4
billion to be spent on Guam as part of the new bilateral defense
agreement.
So far, it seems there is money to be spent for military plans ON
Guam but there has yet to be any money intended to be spent FOR the
civilian community of Guam to be able to address the impacts and the
requirements of the buildup.
We have been told that none of the Japan or DOD funds may be
available to Guam, or if it's available, it may only be used to improve
infrastructure and services on base but not ``outside the gate''.
We are working with DOD and other federal agencies to plan for this
move and determine the best way to insure that everyone benefits. DOD
officials have talked of supporting our requests for federal assistance
while seeking their own funding.
Today the people of Guam are speaking for themselves, asking you,
the representatives of our country to stand with Guam and for Guam in
order to serve and protect the interests of all Americans.
All these collaborative efforts to support the military buildup
will not work if benefits only accrue ``inside the gate''. For our
country to win, all of Guam must win--and that means BOTH the resident
people of Guam and our longstanding military partners.
We are asking you to determine ways to fund the resulting impacts
from the buildup on Guam's public services and infrastructure. And we
will need that help sooner rather than later.
I recall the words from another seminal change in our country's
public policy, regarding racial segregation, that ``Separate is not
Equal''. It is our duty as people of good will to insure that we have
one community of Guam, which allows the benefits of being an American
to flow equally to all Guam's residents, civilian and military, while
still securing our national interests.
Power, Water and Wastewater Impacts and Challenges
I've provided the committee with the summary reports from our power
and water utilities that identify almost $800 million in projects which
are impacted by the military expansion. This information is also being
shared in even greater detail amongst the many interest groups working
on the planning of this expansion, including frequent visitors from
Japan who are performing their own due diligence.
Our general position on these proposals is simple because they make
the most sense for the people of Guam and the American taxpayers
The Guam Power Authority should continue to be the sole provider of
power services on Guam. We should continue federal policy established
by U.S. Public Law 100-202 that the military should become a full
customer of GPA and not a co-operator or competitor.
The Guam Waterworks Authority should provide water and wastewater
services to the new Marine base and eventually operate the Navy systems
which are currently outsourced. Most importantly, the protection of the
northern aquifer which supplies 70% of the water on Guam (including
military populations) will require a united and well coordinated effort
between GWA and the federal government to insure its permanent security
and sustainability.
We don't take these positions lightly. But we are convinced that
the wisest, most economic and secure foundation for Guam's growth and
the planned military expansion results from some of the following
reasons:
A single power grid as currently exists, with the
appropriate upgrades at the correct time will insure the power system
will grow with Guam in terms of capacity and reliability. For the
military to build a whole new power system to serve its 20% of total
island demand does not make economic sense. That same money would be
better spent on upgrading the entire transmission and distribution
system, benefiting all. GPA has identified about $150 million in
projects that will upgrade and rebuild the island-wide transmission and
distribution system to improve reliability.
The need for significant additional power generating
capacity is not needed until after the Marine base is opened and will
require only incremental additions of capacity instead of the large
amount of primary and redundant capacity that would be needed for an
entirely separate DOD system.
GPA has the demonstrated ability to manage the entire
system, relying on its own resources as well as using private
partnerships to provide management and financing. Today, all of GPA's
generation utilizes some form of public-private partnership. GPA will
use appropriate management and financing tools to improve service
reliability cost effectively.
As Guam grows, more customers paying for a single system
will help keep rates more stable and affordable for civilian and
military customers alike. Even today, Guam's power rates at $.18 per
KWH, are lower than all of Hawaii..
Like the Guam Waterworks Authority, the DOD is his
investing hundreds of millions of dollars appropriated by Congress to
rebuild and upgrade its aging water and wastewater facilities for the
Navy and Air Force. GWA has successfully turned around its operating
and financial performance and now offer its customers, quoting from
U.S. EPA's 2005 report, ``the cleanest and safest water in decades''.
Furthermore, investor confidence allowed GWA to raise its
first $100 of an initial $250 million to rebuild its aging systems. GWA
also utilizes a public private partnership to operate its wastewater
system, just as the Navy outsources the operations of its water and
wastewater operations. GWA also produces water at lower costs than the
Navy, providing an opportunity to lower the cost of water for both DOD
and Guam residents.
The Marine base will be located a few miles from GWA's
largest waste water plant in the north, which already serves the Air
Force. Obviously, it would make more economic sense to have the
military expansion provide the incremental cost to increase the
existing plant's capacity to serve the Marines than to build a whole
new plant. GWA is currently spending $9 million on a new outfall as
well, a significant cost that can be avoided by DOD. These savings
instead can be used to upgrade GWA's systems that will serve the
increased demand from the population surge supporting the base
relocation.
The Northern Aquifer will require special attention since
it is the shared supply for Guam residents and the Air Force, and
probably the Marine base. Its long-term sustainability is therefore
equally critical to the people of Guam and our defense interests.
Pending U.S. EPA decisions will require a collaborative approach to
insure Guam's primary water supply is always clean, safe and secure.
Over the years, GWA and Navy water systems have
crisscrossed Guam from north to south. There are opportunities to
better share water resources to lower distribution costs by allowing
GWA to serve Navy customers in some areas in exchange for Navy serving
GWA customers in other areas.
Both power and water utilities are committing ratepayer
financial resources to funding future growth, albeit at a much slower
pace than is envisioned by the Marine re-location. Both utilities plan
to provide some of the financing to upgrade existing systems. The idea
is to leverage both local and federal monies when shared investments
serve mutual interests instead of separate ones.
These are the most prominent of many good reasons to develop a
single plan for Guam's power, water and wastewater systems to serve the
military buildup and share benefits and costs.
Timing Requires Action Now
Each passing day, the planning and funding for Guam's requirements
from the buildup is becoming more and more critical as to whether we
ultimately succeed or fail to get this right from the start.
The military expansion will impact Guam long before a Marine base
is opened. At least 15,000 workers are projected to be needed to build
the base beginning in 2010. All these workers will live ``outside the
gate'' in the civilian community. This means they will impact our
roads, hospital, public safety and other public services, power, water
and wastewater resources.
These impacts are a direct result of the military buildup and
require the federal government to contribute to pay for the impacts
instead of forcing the cost of these impacts on the current residents
of Guam. More importantly, monies can be used to mitigate short-term
impacts and provide longer term support for Guam's growth.
For example, it is estimated GWA will need to add up to sixteen
wells to support this immediate growth with an additional 20 MGD. The
cost of these wells should be borne by the expansion.
Furthermore, the wells will remain after the construction surge and
then can be used to support the permanent residential population that
comes with the actual relocation. Remember, 20,000 new Guam residents
are expected to live ``outside the gate''. Investing once in these
upgrades serves both military and civilian growth needs caused by the
expansion. These are the kinds of ``win-win'' plans that wisely fund
and merge the dual goals of improving Guam and improving our national
security.
But if we don't build those wells now, we won't have enough water
to support the surge in worker population needed to build the base.
As we continue to develop the Guam master plan to handle the
military expansion, hundreds of examples like this emerge. Many of our
challenges have a corresponding opportunity that can better serve both
Guam residents and DOD future interests.
Guam will need professional and financial assistance NOW to make
these opportunities realities, during construction and after the actual
relocation of military expansion.
Investing the Federal Government's ``Fair Share'' in Guam is investing
in America's future
As these projects get fleshed out, we will be able to better
determine the direct impact of the military expansion. It is this
direct impact that the people of Guam will look to the federal
government to pay for its ``fair share'' for the impact that this
change in national policy creates on Guam.
When Japan originally agreed to accept the Marine base on Okinawa,
it invested hundreds of millions in infrastructure in Okinawa to make
sure its civilian community would also benefit. We should expect no
less from our own country.
Our country must invest in Guam for the good of the country.
Had this magnitude of military buildup occurred in any of the fifty
states, you know your good offices would be inundated with the same
types of concerns and requests we echo today.
Guam should not be treated any different than any other American
community.
But we will need leaders like you to provide the voice for the good
and loyal people of Guam in the halls of the federal government where
we do not have a direct voice.
Our country, as represented by a President and Congress for whom we
cannot vote, yet for which we sacrifice daily defending her freedoms
and cherished institutions, must step up and represent the interests of
the people of Guam by insuring Guam receives its fair share of the
impact of the military buildup.
We must unite as good Americans to get this right for Guam. You
will find a no more patriotic, loyal and deserving group of citizens
than here on Guam. Last month we celebrated our 63rd year of liberation
from occupied forces in World War II. And who joined us to celebrate
our freedom? The Marines and their marching band.
The people of Guam have always welcomed our military neighbors. We
appreciate all the hard work and sacrifice that occurs in the defense
of our country because our families also pay the same steep price for
freedom. When freedom rings on Guam, it rings throughout the island and
its sound is as sweet or sorrowful inside and outside the gate.
We have an opportunity of a lifetime to move Guam forward and
protect our country. But we will need your help now more than ever to
get it right for Guam.
Thank you for your time and for your help.
Senseramente'
Simon A. Sanchez II
Chairman
______
Mrs. Christensen. I thank the panel for their testimony.
I'll recognize myself for questions.
Governor Camacho, thank you for your testimony. And near
the end you say that our people must be viewed as relevant and
important stakeholders and equal partners. Do you feel that
that's the case today?
Governor Camacho. I recognize that as a territory, we are
part of the United States of America, and bilateral discussions
and agreements, decisions that have yet to be made are ongoing
between DOD and the Government of Japan.
But if I can just reflect on what Simon had mentioned,
decisions that will be made, for example, with our utilities, I
know that the Government of Japan, under the Special Project
Entities, or SPEs, will be devoting a large amount of money, as
mentioned $700 million specifically for water, power,
wastewater, and other utility requirements.
Decisions ought to be made with input from the Government
of Guam, specifically the Commission on Utilities, in an
integrated process, instead of just building specifically or
directly within their fence line.
We have an infrastructure in place right now, and I believe
that, as Simon had mentioned, a shared investment that can be
leveraged, and the shared investment between the Utilities of
Guam or the Government of Guam, the Department of Defense, and
the Government of Japan would be beneficial to all. It is in
matters like that, that I believe would be where it explains
how we are a part and should be relevant in those discussions.
I believe that at this point, we have not been.
Mrs. Christensen. So, in your discussions thus far with the
military, and I suspect that you have not had discussions with
the Japanese----
Governor Camacho. No, we have not.
Mrs. Christensen --with the military. Do you find that
they're open to even discussing that possibility?
Governor Camacho. Yes, I think that, right now, as
mentioned, the master plan will not be finalized until July of
2008. It is still in the initial planning stages and a lot of
it will be impacted directly, of course, by the Environmental
Impact Statements or studies that are going to be had.
There is room for an inclusion now. And I believe that
Major General Bice and others will be open, BJ Penn and others,
will be open for inclusion.
I tell you, I have every intention, as Governor of the
Territory of Guam, to go and visit Japan myself. I received an
invitation from the Governor of Okinawa to come and see for
ourselves what has happened and learn from that experience. But
we go there with good intentions, not to undermine the plans or
initiatives of Department of Defense, but rather to learn from
what happened in Okinawa as a community, and take those lessons
back here, and engage DOD, and engage the Government of Japan;
in fact, even asking them to consider that as they negotiate
with DOD to include or ask input from the Government of Guam,
because we are the recipient or host country, if you will,
although we are part of the United States. And so I think
inclusion at this stage is vitally important.
Mrs. Christensen. Thank you.
Senator, you mentioned a Brown University Study. You didn't
elaborate on it in your testimony. Could you just tell us a
little bit about it?
And do you think that the University of Guam could--we
talked with Deputy Assistant Secretary Cohen about technical
assistance dollars. I would believe that your University of
Guam, just like ours, would be eligible to receive technical
assistance funds directly. Do you think it would be a
worthwhile project for the University of Guam to undertake a
similar study? And, I don't know what it was, but you
referenced it, so I suspect that it has some relevance to this
discussion.
Senator Won Pat. Thank you very much for the question.
Basically, the studies that are conducted are independent
groups or universities, individual professors, who would do
studies based on the military impact elsewhere. And based on
what the EIS is going to do, we know that that's going to be
conducted on behalf of the military, so therefore there is
going to be some biases there.
What I was emphasizing was that I would like to, yes, have
the University of Guam or an independent nonpartisan group
basically do a study on not only the impact after the
military's been here but, more important, on what the
government and the people are currently going through. So, we
need to get an independent group, other than the ones tasked by
either the Civilian Military Task Force or the joint committee.
Governor Camacho. On that note, I would ask that, as you
are well aware, I have established a Civilian Military Task
Force, and we've done extensive discussions throughout the
community, and I would ask that that be submitted for the
record. Thank you.
Mrs. Christensen. Without objection.
Governor Camacho. Thank you.
Mrs. Christensen. I now recognize Ms. Bordallo for her
questions.
Ms. Bordallo. Thank you very much, Madam Chairman, and I
thank the witnesses for their testimonies.
Governor, my question is for you. In your testimony you
mentioned that, and I quote, ``I have pushed the Government of
Guam to begin the process of directing capital improvements
throughout our island.''
Can you please elaborate on what projects you are pushing
through on a local level that are associated with the military
buildup, and also can you elaborate for us on the process you
are using to prioritize local projects that can be completed to
improve infrastructure before the Marines arrive in Guam?
Governor Camacho. All right. Thank you very much. Thank you
for that question, Congresswoman Bordallo.
We, recognizing that the military buildup was coming and
agreements were made, I pulled together the Commission on
Utilities, which represents water and power and wastewater,
Department of Public Works, which represents all our roadways,
the Port Authority, the Airport Authority, every relevant
agency that provides not only the infrastructure, but social
services, such as police, the hospital, education. And we
grouped together their existing master plans or whether it be a
10-year or 20-year plan, and totaled up the combined impact in
the areas that we anticipated the buildup to occur, which is up
North and other developments in Andersen, and of course down in
Naval Station.
All told, we have come up with a tally of roughly about $1
billion or $1.1 billion, combined. And these are, again, a
summation of what we believe needs to be done over the next few
years.
What has, I guess, brought the sense of urgency now is the
desired completion date of the military buildup by 2014, that
will have an impact on the island also. And so it compresses
the timeline for completion or at least the initiation of these
projects that must occur.
Word was made or--the testimony by Major General Bice, for
example, on the Port Authority of Guam. Although they've had a
master plan for many years, it has been stalled in initiatives
even to purchase cranes. And now the urgency in getting them
upgraded and equipped and trained to receive the input of goods
that will flow through the port for the buildup has been
greatly compressed. And so the need to basically deal with this
is very, very urgent, and so it is in that light that I
mentioned that.
Ms. Bordallo. Thank you, Governor.
I have another question. As you know, the Department of
Defense has stated that the on-island capacity for construction
spending is around $400 million a year, and I believe that we
must fully utilize and develop our own workforce locally before
relief is sought with foreign labor in the midst of this
buildup. I'm very conscious of this particular aspect.
So, can you elaborate on the programs in place and that are
planned by the Government of Guam to train local citizens for
the future construction and trade jobs that will inevitably
arrive with the buildup?
Governor Camacho. Well, I appreciate that, and I think it
is a two-part answer.
First of all, I had a discussion with the local contractors
and Department of Labor last week, and it was about--actually,
it was prior to their departure to Washington for this IGIA
meeting. The local contractors, I believe, anticipate that the
Government of Japan will form consortiums of their major
construction firms with large U.S. corporations or construction
companies.
I have been witness to many visits to my office where they
are beginning to form, either formally or informally,
consortiums of different companies that will bring resources
into Guam. They do feel though that, the local contractors feel
that they will have an opportunity and that every single worker
will probably get subcontracted work out to them.
The ability for our Department of Labor, working with the
existing programs right now to properly train the workers in
the required timeline, I think it is going to be stressed. We
do need to combine our efforts under Department of Labor,
working with the Republic of Palau, with FSM, the Republic of
the Marshalls, to find ways to properly train them.
Right now, the construction industry has put together a
training program and apprenticeship program, as you know, but
the number of participants right now is quite low. So, there is
going to be a need, we believe and they believe, to allow for
imported labor. Again, to maximize the opportunities for our
local people and train them, in addition to any other migrants
that may come in from Micronesia, will be a big challenge, and
I believe they can only handle so much. We don't know the exact
number. So, there is going to be a definite need to bring
laborers in from perhaps the Philippines.
And I know that you're well aware of the restrictions we
have and how can we work with the existing quotas and can there
be some kind of--I guess, a waiver, as applied to the Territory
of Guam, with a certain timeline, whether it'd be for a period
of time until the buildup is completed or perhaps where
construction would be maybe at a level of 250 million or less.
At that point, at maybe a cut-off point.
So you may establish timelines on when these waivers can be
allowed for workers to come in. And I believe it is going to
require very serious negotiations between governments, the
Government of Guam, the United States Department of Labor, and
whatever country that we negotiate to bring laborers in, be at
the Philippines, where there are already trained and skilled
laborers. But, we must not squander this opportunity though to
train as many of our local people that are interested.
And it also speaks to the regional approach that I believe
we must undertake. At the meeting we had with the Pacific
Island Leaders Conference in Washington, there was a strong
desire by most of the Island leaders, not only in Micronesia,
but Polynesia and even as far down as Melanesia, to join
forces. The East-West Center that's based out in Honolulu has
agreed that they can undertake a study to see how feasible this
is, and see what we can do.
We also have the help of the Office of Economic Adjustment
right now, and consultants KPMG, that's being paid for by OEA
money, which under DOD, to help us look at a broad scope of
things and the big picture, incorporating labor and many other
issues that are there.
So, we are looking at every possible avenue. Thank you.
Ms. Bordallo. Thank you, Governor. How many training
programs are in effect? I know I've have run into about three
or four of them.
Governor Camacho. Yes, as mentioned, the contractors have
their own--they've established apprenticeship programs, even
within the Power Authority----
Ms. Bordallo. GCC.
Governor Camacho. GCC has also.
Ms. Bordallo. Ship Repair Facility.
Governor Camacho. Ship Repair Facility.
I believe even Waterworks is eventually working on one.
Mr. Sanchez. Already.
Governor Camacho. Already.
Ms. Bordallo. Very good.
Governor Camacho. And we hope to expand this to the Public
Works, where we can get skilled laborers. But, it is going to
have come to another level. There simply is not enough going
right now and, interestingly, not enough interest from our
young able-bodied men and women that can go into this field of
construction. There doesn't seem to be much of a local
interest, and I think it is simply a matter of marketing and
promoting----
Ms. Bordallo. That's correct. That's correct.
Governor Camacho --the opportunities that are there and
available.
Ms. Bordallo. Thank you very much, Governor.
I do have other questions, but--another round, all right.
Thank you, Madam Chair.
Mrs. Christensen. Thank you. Thank you, Chairman Bordallo.
Mayor Savares, there were recent exercises throughout the
region, and some of it, of course, took place at Andersen Air
Force Base. Did that raise any extra concerns that you--was
anything that occurred during those exercises that may have
raised some additional concerns?
Ms. Savares. Not currently. As a matter of fact, in April,
during the scoping meetings--there is always ongoing exercises
with the helicopters in the Northwest Field area. And, of
course, we were at the same time of the exercises, there was a
function going on in the Agafa Gumas area, which is up past
Pods (phonetic) junction, and I did ask the officials that were
there, at the end of the day, ``Were you bothered by the
noise?'' And they said, ``What noise?'' And I said, ``Well, you
know, we have the helicopters flying overhead.'' And they did
not realize it.
But that was a concern in Okinawa. We went to the Fitama
(phonetic) Overlook and, of course, the residential area was so
close to the base that the exercises continued through late
evenings.
And I understand that there is an exercise right now with
the ships in the area and the flights, of course, are--you have
the jets flying over. It is not a concern right now, but of
course with the buildup, it might be. That's why the concern
that we saw in Okinawa, and we heard from their community
leaders, is that between 10 p.m. and 6 a.m., the flights are
still coming in, with the helicopters, the jets, and so we
don't want that to happen here. And so, of course, that's why
we are bringing it up.
Mrs. Christensen. Thank you.
Mr. Sanchez, in your testimony, you mentioned that you
identified several hundred million dollars in projects for
upgrading the transmission and the distributions system. Have
you also identified any projects to help with energy efficiency
and conservation, like renewable energy projects? And, do you
think that that ought to be a part of the discussion as well,
as you prepare? We understand your position very clearly on how
the military buildup should go with regard to power, but what
about renewable energy?
Mr. Sanchez. It is probably our biggest focus for planning
what the next base load should look like for Guam's growth,
which includes the military expansion. We've had a lot of good
informal discussions with DOD, and we are looking at maybe 60
megawatts. You know, Guam has 550 megawatts now. We only used
260 megawatts for peak demand. So, we have almost a 100 percent
surplus capacity. Why? Because we can't run a plug to another
grid in Hawaii or California. So, you also have to have
redundancy.
And that's why we talk about having two systems on a little
island. It doesn't make sense. We are doing an integrated
resource plans study now. R.W. Beck, who happens to also be the
consulting engineering group for the Japan Bank that will be
loaning the $6 billion, is doing the study for us. And we are
looking at coal, nuclear, wind, OTEC.
I think the biggest challenge that we are finding in the
preliminary analysis is, given the magnitude of need for Guam,
wind, OTEC, oceans, they're not efficient. They have a long way
to go in terms of technology development to provide us 50, 60,
100 megs worth of capacity.
Coal is emerging as a possible choice. It is great once you
build it, but it is three to five times the cost to build it
initially. When we say $800 million, $300 million of it is for
a large coal plant, if we go in that direction. It is more
expensive to build, much less expensive to operate. Of course,
you've got the algorithm side of the equation, about going into
coal at all versus the need for affordable power here.
So, we are looking into those things and, as General Bice
had mentioned last week in D.C. and then again today, DOD and
Japan are having some discussions about power, and I asked the
same question last week in D.C. that I'll ask here in Mangilao,
as the Governor said, when can the Guam Power Authority, who is
the sole provider, when can we sit down? We have some ideas
that we think can handle Guam futures growth with shared
investments so we can keep rates lower.
I think the other piece of a puzzle that we ask you to
think about, DOD gets Congressional funding. There is no debt
service on Congressional funding. They don't pay back on bank
30 days later. And when we look at infrastructure, we are
capital intensive businesses, and debt services becomes almost
the biggest component, other than the oil piece of the puzzle.
And we are hoping to take some of these monies that doesn't
have to get paid back to jointly invest and upgrading team
transmission and distribution to build the next capacity that
moves us in the directions of diversification, away from oil,
and put our heads together, because we think, again, for a
little island, there's some real opportunities to leverage that
money, but put it in the position where the people in Guam
aren't stuck paying back debt service 30 days after we get the
money.
That's the challenge of using public-private partnerships
in special purpose entities. They're going want to pay back the
$700 million that General Bice has identified. Our question is,
is that all to be paid back through rates, and/or can some of
that be invested where we are constantly forcing the ratepayers
of Guam, both current and new, including the military? You
know, they pick up 20 percent of the tab, so their power bill
is affected as well, and your future appropriations that you
have to give to DOD to operate on Guam get affected.
So, we see some real opportunities if we can get
collaborating on this $700 million that may be available on
these alternative energies, where they're going to put it, how
is it going to be operated?
We are happy to report one of our private partners is a
Japanese power company. So, we are very comfortable and very
familiar with working with SPEs, public-private partnerships,
use at private financing. We've raised our own money. But those
require immediate ratepayer repayment. And anything we can do
to get some of that free Congressional money that DOD gets,
without having to pay back debt service, helps the people in
Guam afford this upgrade, and be able to better live their
lives.
Mrs. Christensen. Congresswoman Bordallo.
Ms. Bordallo. Thank you, Madam Chair. I have a few more
questions of Senator Won Pat.
I'd like to address this to you, since you are the sole
representative here from the Legislature. I hope you'll be able
to answer it.
How will the locally identified priorities by the executive
branch with respect to the buildup be addressed by the Guam
Legislature within the annual budget process, and are there any
special considerations being given in terms of altering the
budget process or reviewing such priorities on a separate
track?
Senator Won Pat. Thank you for that question.
Being a former senator, of course, in the Legislature of
Guam, you know, the Governor of Guam normally submits the
budget for the executive branch. And they basically set the
priorities in terms of the executive branch, and what we do
would be then to reprioritize some of those requests.
I believe that the Legislature needs to really look and
change its thinking, of course, in how we prioritize our
spending. I'll have to say, however, that with the low economic
status of the island of Guam, we don't have that much money
basically to earmark for specific projects, such as power or
the utilities, much less the landfill that we need to close
down.
What this would actually mean for the Legislature would be
to go out and take out bonds, and a majority of the senators
right now are not in favor of mortgaging the future generations
of Guam. That is the reason why our approach is to look to the
Federal Government instead for assistance.
Ms. Bordallo. So, rather than working with the executive
branch when they set their priorities, you say they are not
really cooperating or--is that what you're telling us?
Senator Won Pat. No, they're--(Laughter).
Of course--you really are putting me on the spot, aren't
you?
(Everybody laughs).
I'm in the minority. OK?
Ms. Bordallo. I know.
Senator Won Pat. So----
Ms. Bordallo. I don't think you heard me.
I said, I hope you can answer this question since you're
the sole representative----
Senator Won Pat. Yes, I did.
Ms. Bordallo --of the Legislature here this morning.
Senator Won Pat. That's true. And even within--I'll be very
honest, of course, even within the Republican Party, there's a
rift, and I'm surely not going in there at all. I'll leave that
up to them.
Governor Camacho. I don't know of any rift.
[Laughter.]
Governor Camacho. We are having fun here.
Ms. Bordallo. Thank you very much, Senator. You've been
very brave here. But, thank you, thank you.
Mayor, I have a question for you. Can you explain the ways
in which the mayors are working together in preparing for the
buildup? I know you've been very supportive all along and your
village, your area of the island will be most affected.
In what ways do the residents of Dededo today interact with
their neighbors at NCTS and Andersen Air Force Base, and are
there goodwill and sister village relationships? I know they've
been going on for years, but I'd like to get your comments on
that. How are the communities interacting as one, and in what
areas do you think community relations can be improved?
Ms. Savares. Currently, we have a very strong Sister
Village Program with our military counterparts throughout the
bases and the villages in the island, around the island.
We, most recently of course with the preparation of the
schools, a lot of the Sister squadrons did come out to assist
with grass cutting and painting of several of the schools
throughout the island.
Mayor Lizama, this past Liberation, had one of his
squadrons, his Sister squadron, participate with him in the
village float competition, and they had one of their small
model aircrafts on it, and they won first place on the village
floats.
So, of course, the community ties with the squadrons and
our Sister Village Program continues, and they continue to grow
within the communities.
Of course, the culture in the northern area, we are trying
to build that back up. We are currently working this past
summer, Yigo and Dededo worked together with Paa Taotaotano to
get our kids, and our members of our community, to interact
culturally with learning how to weave, so that when we interact
with our military Sister Village Programs, we can teach our
people also, or our counterparts, how to weave, chant.
We had a presentation at the mall last week and, as part of
Mayor Lizama's program, he had 13 Andersen Air Force Base
children participate in his summer program. They were chanting
and dancing the Chamorro chants and they were also weaving.
So, the interaction as far as keeping, preserving our
culture, northern area of Dededo, Yigo are currently trying to
emphasize on a stronger bond with it, and then also share it
with our community, Sister Village Programs, and then the
interaction with them coming off base to actually assist us
with current projects that we are working on.
Like I said, the preparation of the schools, that will
continue.
Ms. Bordallo. A quick follow up, Mayor.
Ms. Savares. Yes.
Ms. Bordallo. Would you then say now, you've commented on
the northern part, but would you say overall the village,
mayors----
Ms. Savares. Yes. Merizo still has a very strong bond with
their sister squadron, which is the Coast Guard, and the same
with the other villages. Inarajan constantly every month does
something. So, the villages, the mayors are very aggressive
with their sister squadrons.
Sometimes it depends on the Commander. They have a change
in commanding officers, and the new commander may not be as
aggressive as the one in the past. But the members still come
out. I know, in my Municipal Planning Council, I have honorary
members who are from, one from NCTS and one from Andersen.
Ms. Bordallo. Very good, Mayor. I know this program has
been exceedingly fruitful over the years. I've known it for
years and it has been very, very successful.
I have a couple of questions for Mr. Sanchez. Do you--
(pauses).
All right. So, I yield back then to the Chairman.
Mrs. Christensen. Thank you.
Let's see. Governor--this question basically is for both
Governor Camacho and Mr. Sanchez. Let me see if I can kind of
put it together.
And, Governor, you say we cannot be expected to cover
unfounded mandates or other substantial requirements of this
military expansion. And I wanted to talk about critical
infrastructure and whether you've identified critical
infrastructure. It would seem to me that some of them, and
we've already talked about the utility, that's a critical
infrastructure, not only for you, but for DOD, and it seems to
me that there should be some cost sharing involved there, as
you've said.
What are some of those critical infrastructure? What would
be the top 3 that you would see that you would not be expected
to cover as unfunded mandates, but that you would require
substantial military assistance with?
Governor Camacho. Well, I think definitely if you look down
at Andersen and Naval Station, their capacity right now for
their landfills is close to being exhausted. They're going to
need, along with the military base that will be established for
the Marines, a place to dispose of their waste.
The need and first of all the consent decree that we have
agreed to as a government to shut down our current landfill,
which has been in existence for close to 60 years or more, is
very, very critical right now with certain timelines that had
been established, that have come and gone and penalties that
are a result.
I'll have to share with you what is difficult for us right
now is getting a clear direction. As an executive branch, we
are being pulled in different directions, demands by Federal
U.S. EPA to shut down and establish a landfill and then of
course position of several senators that it shall not be downed
at the location that we sited down in Dandan, because they
don't want that to be impacting the community, and concerns
about some ground water and possible pollution in that area. An
existing law that requires and demands that we have an
incinerator in another area of the south toward Agat/Santa Rita
called Guatali, with terms and conditions that are not
acceptable to the government.
And so, we are really caught in the middle, as there is no
real clear policy decision. On the one hand, we must proceed as
U.S. EPA demands and continue with the studies; the same time
there are lawsuits that have been appealed and have been
overturned in our local courts and our Guam Supreme Court on
that very incinerator. So, where we end up and how this puzzle
will be solved that certainly one that must be addressed.
The other requirement of course I think is public safety.
Right now our police officers are, I believe, 300 men short of
what would be required of a community of this size. And when
you factor in the growth of perhaps 17 to 20,000 additional
military personnel in a few short years, the requirement for
public safety, just in police alone, is tremendous.
And I think third, although we are addressing schools, and
DODEA has their schools, that is a sub-requirement.
The third one I think that we must be concerned about would
be healthcare. We have a community of course that is close to
170,000 people now. You throw an additional 10 to 15,000
workers with no clear terms and conditions on the care for
them. If someone gets sick and ill and injured, who takes care
of them? Is there an insurance policy that would be provided by
the employers, or do they simply come into our public health or
hospital and have an impact upon our ability to pay for them?
We currently spend between, although it is appropriate at
$17 million, we are spending close to $28 million on healthcare
for our poor and indigent who have no insurance whatsoever. So,
there will be a further burden on our healthcare system.
Those are the three other areas other than infrastructure
that I think we must be concerned about.
Mrs. Christensen. OK, and thank you, Governor.
And Mr. Sanchez, on May 17th, the Department of Homeland
Security released its sector specific plan for critical
infrastructure, which includes the industries represented by
CCU. Were you given an opportunity to participate in the
consultation process of the sectors specific plans? Have you
had any assessment of critical infrastructure that you had an
ability to input?
Mr. Sanchez. To be honest with you Congresswoman, I wasn't
involved. That doesn't mean my management team wasn't. It is
the first I've heard of----
Mrs. Christensen. You don't know that an assessment team
came in to----
Mr. Sanchez. And that we are----
Mrs. Christensen --develop a critical----
Mr. Sanchez --specifically engaged with the power, the
water authority.
So, I'd love to see it, and again this is----
Mrs. Christensen. So, you haven't seen it either?
Mr. Sanchez --another example of--we can play a role and we
have to play a role----
Mrs. Christensen. Sure.
Mr. Sanchez --and engage in here.
I just want to add to what Congressman, I mean, Governor
Camacho had mentioned. You know, you asked about our critical
priorities. We've mentioned transmission and distribution. If
we could get some money invested into that, it would allow us
to grow the system for--(pauses; phone rings)--that's
telephones.
I don't do that.
It would allow us to grow the system, not just for the
current growth, but for the expected Marine growth.
We see the construction phase of the Marine base, there's
16 wells we will need to drill in Dededo, next to Mayor
Savares' village, because that's where the bulk of the
construction workers are probably going to live; either there
or down in Agat and Santa Rita. Again, an opportunity.
If we then get some of the $700 million or some
Congressional money, or some of the money supposedly floating
around to build the wells for the construction phase, when
those 15,000 construction workers leave and 20,000 citizens
move in to staff and work on base, those wells remain, and
there's another good win-win example of investing money now for
the construction phase and taking advantage of these wells that
are going to remain existing and let that use to future growth.
So, from the water side, there's that, and you need to be
aware, U.S. EPA has already sent some testimony in, there's a
growing--there's a problem--there's a potential problem with
the Guam aquifer. Right now, it provides 70 percent of the
water on Guam. It has the ability to generate 80 million
gallons a day, and we are only using 30 million gallons a day.
So, there's room for growth.
But U.S. EPA is studying whether the U.S.--whether the
aquifer needs to be treated like surface water. And when you
treat it like surface water, you have to have a Surface Water
Treatment plan. GWA has one in Yona and Talofofo called the
Ugam Treatment Plant, and the Navy uses one at Fena. Well, the
Air Force drills its own wells and gets its own water out of
that aquifer. Of course, we don't want the Marines to drill
their own wells, we want then to get it from us. But at the end
of the day, we are all drawing from that same big source of
water, you know, different straws in the water, and the private
sector also has some private wells.
We are concerned from a security standpoint, that if we
don't think about that aquifer as a single resource that has to
be protected from terrorism, from adverse impacts, depending on
how this expected EPA decision is going to come down, and we
expect within the next 18 months, we are not going to be able
to put--we have a hundred wells, we are not going to be able to
put a hundred treatment plants up.
They're going to have 4, 6, 10 to 12 wells. In fact, the
Navy already has 16 wells now. They can't put a treatment plant
in all of those.
So, we are looking at the concept of single wells
supporting, drawing from the aquifer, supporting all the
costumer needs and secure it and protect it in a way that they
can never be at--we can never put that aquifer at risk. That
aquifer has to get protected and conversations with DOD and our
community, we need to get engaged on that right away.
Governor Camacho. And, Madam Chair, may I just interrupt
for a second?
I also wanted to add, as you asked, what were the
priorities. I failed to mention----
Mrs. Christensen. It is hard to----
Governor Camacho. Yeah.
Mrs. Christensen --to end the list.
Governor Camacho. But the one key, I think, is the Port
Authority of Guam, our seaport, which I believe is one of the
single most important facilities right now that must be
upgraded. That's the choke point. That is a single entry point
for roughly 90 percent of all goods coming into Guam. Its
capacity right now to handle the goods flowing is already
strained because of a lack of cranes that are old and decrepit
and need to be replaced, and they've been boggle down with a
very cumbersome procurement system in protest that have
occurred.
But beyond that, our capacity to handle the additional
goods coming in for the buildup in ships is the single most
important issue, I think, because if that is not functioning,
and not capable of handling the flow of goods coming in, it
will certainly slow down the buildup here.
In addition to that----
Mrs. Christensen. So, that's critical----
Governor Camacho. I'm sorry?
Mrs. Christensen --critical infrastructure for you and for
the Department of Defense, and therefore should be a shared----
Governor Camacho. Absolutely.
Mrs. Christensen --responsibility.
Governor Camacho. Very, very critical.
Thank you.
Mrs. Christensen. Thank you.
For the last set of questions for this panel, Ms. Bordallo.
Ms. Bordallo. Thank you. Thank you, Madam Chair.
Mr. Sanchez, I have a couple of questions for you.
Mr. Sanchez. Are these the easy ones I gave you before the
weekend?
Ms. Bordallo. They're easy. They're easy.
Mr. Sanchez. OK.
Ms. Bordallo. In your testimony, you remind us the Navy and
the Guam Waterworks water systems crisscross at certain points
on the island and the sharing agreements may be possible. Could
you elaborate on how the sharing agreements could be structured
and whether there is a precedent for such agreements, and has
this issue and proposal been raised directly with the Navy and
the joint Guam Program Office? And if so, what has the general
reaction been?
Mr. Sanchez. OK. You know, right now, the Navy pumps water
from Fena down south all the way up north to NCTAMS, and we
pump water from the north down to the south to make sure----
Ms. Bordallo. I know. Yes.
Mr. Sanchez --Agat, Santa Rita, and the south have water.
There's a perfect example of--you have two separate systems,
engineered differently.
We used to connect at about 35 places; the Navy is cutting
it back to about 20, because they're trying to get their act
together. They have major water and wastewater challenges just
like GWA.
As you know, the MILCON budgets are appropriating over a
$150 million for them to fix Fena and their wastewater. So,
here we have two systems trying to recover within feet and
miles of each other, and we are not spending the money
together.
We think that, if we can move to integration, and you ask
for an example. Before, the Guam Airport and the Guam Power
Authority were jointly operated between the military and the
civilian community and now, the airport is run by the people of
Guam, the Guam Power Authority runs the entire system. So if
you're looking for models that would work for water, it is
indeed to move the Navy into a costumer position with the Guam
Waterworks Authority, allow the Guam Waterworks Authority to
run the entire system, just the way the airport is run by the
civilian community, just the way the power company is run by
the civilian community, and then it will be incumbent upon us
to meet the standards, meet the performance standards. We've
done it at GPA; we've done it at the airport.
So, there's existing Federal models. It is Public Law 100-
202, that was passed by the Congress and basically giving back
the property, the power assets of the Navy and transferring
them to Guam Power Authority. So, there already exist scenarios
in Federal law in which essentially the military, as General
Bice--and I believe he's sincere, they don't really want to be
in the power, water, port business. They want to be a customer.
But they're concerned about our ability to deliver high quality
service. And yet, we believe and we are confident that we can
achieve that level, if we get a single integrated system.
We are about to be informed of 100 percent rate increase by
the Navy for the water we buy from Fena, and it is going to put
it up to $4.00 per thousand gallons. I politely asked our Navy
colleagues and said, if you guys, you know--we produce water
for $2.80 per thousand gallons, and we pay debt service. They
don't pay debt service on their capital investments. If it
costs them $4.00 per thousand gallons to run their system and
we can run it for $2.50, we can save money, then give it to us,
we will run it for less, we will save them money, and we will
reintegrate the entire water system.
When I asked the Navy, ``Why does it cost so much at $4.00
per thousand gallons,'' they said, Economies of scale. And
immediately my light went on, I said, Well, you suffer from
economies of scale, because you're so small and you're running
this little system. We benefit from economies of scale, that's
why we are cheaper because we run a much bigger system.
Isn't it time to begin to marry these infrastructure
systems? In fact, it is the perfect time to marry these
infrastructure systems, and return and make the Navy and the
military a customer of Guam Waterworks Authority. We will take
over the system. If we have to use public-private partnerships
or SBEs to do that, we already used that tool as a management
tool for financing and management. We are not afraid to do the
right thing to provide service to our people.
Ms. Bordallo. And I'm----
Mr. Sanchez. But this is the perfect time to merge them.
Ms. Bordallo. I'm sure you've made the proposal of this
joint sharing system----
Mr. Sanchez. Well, no--no, not yet.
Ms. Bordallo --but how are they reacting?
Mr. Sanchez. Well, I think that's part of the problem.
I mean, General Bice, we've had some informal
conversations. There's lots of meetings. We have technicians
coming in. I think there's an effort and a desire to engage.
But at the end of the day, we really haven't had formal
meetings.
I mean, one thing I'd love the committee to look at is, if
there is $720 million that may be available from Japan's $6
billion, can we start having those conversations?
The Port--you know, I told General Bice, you take $700
million and you divide it by power, water, port, and landfill,
and you will go a long way toward solving all of those problems
for everybody. OK?
And so, we'd love to start having engaged conversations,
specific ones. Because, the Japanese have visited us and one of
things they point out is--you know, and take it with a grain of
salt, I don't want to say they're all representing. But they're
saying they're being told by the DOD some of the parameters.
And my concern is, are there alternative parameters that are
not being presented to Japan that they might say, You know,
that's a better way to do it and it is more cost-effective.
We need a place at the table. I think that's what the
Governor is calling for. We need a place at the table with
these monies now if they want us to be ready.
Ms. Bordallo. Thank you.
Governor?
Governor Camacho. Yeah, Congresswoman Bordallo, that's what
I spoke to as I mentioned that we as a government ought to be--
we are relevant and credible stakeholders in this entire
process.
And although it is a bilateral agreement on the specific
discussions, such as infrastructure, that's where it has got to
be a triparty-type of discussion, where input can be taken from
our Commission on Utilities.
And I think it only lends to a better understanding of the
overall possibilities, as they form their business models on
how they would fund this out of the $720 million. Input from
the CCU on specific utility upgrades and options would be very
beneficial to the final decision on what business model they
will adopt.
Thank you.
Ms. Bordallo. So, in general then just quickly, what I'm
getting, the reaction I'm getting here is that, they are not
really that acceptable to this idea or they're what?
Mr. Sanchez. No, I won't say that.
Ms. Bordallo. No?
Mr. Sanchez. I mean, they say they want to collaborate.
Last week in Washington, D.C., General Bice said, Simon,
don't worry you will be involved with this business plan. And
I'm taking that at face value.
Ms. Bordallo. Good.
Mr. Sanchez. But every day that goes by, I worry about the
port and the landfill almost more than I worry about power and
water at this point. We have a little time, not much. But
let's--but we----
Ms. Bordallo. Well, if something else, we will monitor.
Mr. Sanchez --we can play a role. You can't build the
business plan for Guam when Guam is not at the table.
Ms. Bordallo. Very good.
Thank you very much. Thank you, Madam Chair.
Mrs. Christensen. Thank you, Governor. Thank you, Senator,
Mayor, Mr. Sanchez. Thank you for your testimony and for your
responses to the questions that we asked.
And, this panel is now dismissed with our gratitude.
Mrs. Christensen. We'd like to call up our third and last
panel of witnesses, The Honorable Hope Cristobal, former
Senator of the Legislature of Guam; Mr. Benny P. San Nicolas,
Chairman of the Southern District of the Guam Soil and Water
Conservation; Mr. Stephen Ruder, Chairman of the Guam Chamber
of Commerce; Ms. Trina Leberer, Marine Conservation Coordinator
of the Nature Conservancy, Micronesia Program; and Mr. John
Robertson, Chairman of the Government Military and Labor
Affairs Committee of the Guam Contractors Association.
The Chair now recognizes Senator Cristobal to testify for
five minutes.
STATEMENT OF THE HONORABLE HOPE CRISTOBAL,
FORMER SENATOR, GUAM LEGISLATURE
Ms. Cristobal. Hafa Adai, Chairwoman Donna Christensen and
members of the Subcommittee on Insular Affairs, Si Yu'us Ma'ase
for this opportunity to be heard.
I am Hope A. Cristobal, an indigenous Chamorro, former
senator, retired school administrator, and probably the token
general on public today, totally unbudgeted. I appear before
you on behalf of the Guahan Coalition for Peace and Justice as
a member representative of Fuetsan Famalaoan.
The Coalition for the Protection of Ancient Cemeteries,
OPR, and the Chamorro Studies Association--it has been some 30
years since a Congressional hearing was held on Guam. As a
witness, I feel that the limitations and restrictive list of
today's hearing are examples of what Congress thinks of its
subject people.
You owe us no allegiance nor time, and our people's voice
really do not count, although I would remind you that
unilateral decisions about our lives and our homeland
perpetuate the historical denial of our human rights. This
hearing is a reminder of the inconsistencies between the
principles and the practices of democracy in a U.S. 21st
Century colony.
Madam Chairwoman, Guam remains a colony of the United
States today. It is a non-self-governing territory under
international standards and an unincorporated territory within
the framework of the U.S. Constitution.
While suffering the indignities of labels, such as
possession, property and colony, we bear the brunt of
restrictive interpretations in the application of Federal
statutes, rules and regulation, by U.S. representatives with an
eye toward maintaining the status quo, in the process
diminishing Congress' authority and responsibility to provide
for the civil rights and political status of the native
inhabitants of Guam under the guidance of the U.S.
Constitution, the Treaty of Peace and the U.N. Charter.
Just three days ago, a Pentagon spokesman referenced Guam
as a U.S. asset in the Valiant Shield war games. And yes, Madam
Chair, just to digress quickly, our community was affected,
windows were shaking, planes flying low over our homes. I live
near Tumon, residents there were scared, the tourists were
scared, local residents of the elderly Guma Tranquilidad, who
had survived World War II, were scared.
A 1945 secret memo as well revealed the U.S.'s real
intention for Guam of military control for its military value.
There is no question that U.S. Military interests take
precedence over our people's interest, and that the status quo,
the status of dispossession, is directly related to the issue
of the Pentagons planned militarization of our homelands.
First, Guam is taken as a colony during the Spanish-
American war for its U.S. Military and strategic value.
Second, Guam's resultant status is that of a colony or as
determined in the insular cases of 1901 to 1922, a possession
of, but not a part of, the United States.
Third, Guam's value was again misunderstood during and
after World War II, when vast amounts of land were taken and
decisions about disposition were made unilaterally in the
Organic Act of 1950.
Fourth, Guam status under the U.N. Charter is that of non-
self-governing territory or colony.
Fifth, nothing has been done by Congress or otherwise to
change Guam's fundamental colonial status.
The Organic Act of 1950 reaffirms Guam's status as a
possession, and Guam remains a non-self-governing territory
under the U.N.
Sixth, current discussions about how Guam would be used by
the U.S. Military are discussions within a decision. The
decision to use Guam is not one made in Guam or by Guam, but by
those who possess Guam and its people. Neocolonialist policies
and the deliberate and careful undermining of an unincorporated
Guam have allowed the use of our lands for military delivery
systems, storage for nuclear weapons, home porting of nuclear
warships and space warfare technologies.
The militarization of the Pacific and our homeland has had
devastating, often unmitigable, effects on the health and
welfare of our people. We have high rates of cancer, Madam
Chair, just as a point of information on cancers alone. On
nasopharyngeal alone, Guam has a rate of 1,995 times more
cancer than the standard population of the United States. In a
study by Hadac and Navao (phonetic) on incidences of cancer,
the two villages with the highest cancer deaths are Santa Rita
and Yigo; the two closest to military bases.
With all due respect, Madam Chair, the people of Guam also
need to be heard by actual voting representatives who sit on
the Armed Forces Committee. An investigation of the Pentagon's
buildup plan having two EISs--one for Andersen for the ISR/
Strike capability, and another for the Navy--is in order.
Further, we reiterate the need for a holistic EIS with the
requisite Socio-cultural Impact Assessment, subsequent and
cumulative impacts, impacts from connected actions, timely
public disclosure and public alerts about depleted uranium and
nuclear weapons in the EEZ and coastal waters, and one that
ensures objective environmental information with a genuine no
action alternative. Unless, of course, the military buildup is
a foregone conclusion. We are very, very worried about the
depleted uranium and live fire training on Guam.
The impact of thousands of new residents and military
assets within the context of a colonial relationship is self-
evident in a small island community. The dilutive effects on
our right to self-determination is a very deep concern.
Furthermore, the influx of new residents is in contravention to
relevant U.N. resolutions on decolonization and the U.S.'s
obligations as Guam's administering power.
In the UN's plan of action of January 2006 for the second
decade, for the eradication of colonialism, it is stated that
administering powers should refrain from using non-self-
governing territories for military bases and installations. We,
unequivocally, object to our people being excluded in the
Federal Government's deliberations relating to this buildup,
and we ask that a separate process be engaged for the colonized
people of Guam to make an informed and an explicit decision
about whether or not we want this military buildup.
It is vital that decisions related to the U.S. Military's
plan be framed within the context of a dependent people living
within a non-self-governing territory that is struggling to
protect our inalienable right of self-determination, and to
preserve our national identity. This must be the guiding
principle of decisions by the U.S. Congress relative to Guam;
my people deserve nothing less.
In closing, I leave you with an old Chamorro Proverb
[Chamorro language]. ``Greater is the fault of he who allows
the injustice upon himself.''
Thank you, Madam Chair.
Mrs. Christensen. Thank you, Senator.
[The prepared statement of Ms. Cristobal follows:]
Statement of The Honorable Hope A. Cristobal,
Former Senator, Guam Legislature
Buenas dias Chairwoman Donna Christensen and Members of the
Subcommittee on Insular Affairs:
Si Yu'us ma'ase for this opportunity to be heard. I am Hope A.
Cristobal former Senator, retired school administrator and community
activist on issues related to the Chamorro people. I have been an
adjunct professor at UOG teaching History of Guam. I appear before you
today on behalf of the Guahan Coalition for Peace and Justice as a
member representative of Fuetsan Famalao'an (2006), the Coalition for
the Protection of Ancient Cemeteries (2007), OPI-R (the Organization of
People for Indigenous Rights) (1981), and The Chamorro Studies
Association (1987). I am a Chamorro wife, mother, and grandmother; I
have lived most all my life on Guam. As of late, I have been working to
save pre-colonial and colonial Chamorro burials, cemeteries and sacred
grounds.
It has been over 30 years since a congressional hearing has been
held on Guam. As a witness, I feel that the limitations and restrictive
list of today's hearing is another example of what Congress thinks of
its subject people; you owe us no allegiance nor time and our people's
voice really do not count. Although I would remind you, that unilateral
decisions about our lives and our homeland perpetuate the historical
denial of our human rights. This hearing is a reminder of the
inconsistencies between the principles and the practices of democracy
in a U.S. 21st Century colony.
Madam Chairwoman, Guam remains a colony of the United States today.
It is a non self-governing territory by international standards and an
unincorporated territory within the framework of the U.S. Constitution.
While suffering the indignities of labels such as: a
``possession'', ``property'' or ``colony'', we bear the brunt of
restrictive interpretations in the application of federal statutes,
rules and regulations by U.S. representatives with an eye towards
maintaining the status quo; in the process, diminishing Congress'
authority and responsibility to provide for the ``civil rights and
political status of the native inhabitants'' of Guam under the guidance
of the U.S. Constitution, the Treaty of Peace (1899) and the UN
Charter.
Just three days ago, a Pentagon spokesman referenced Guam as ``U.S.
asset'' with respect to an encounter with Russian bombers in the
Valiant Shield war games. Recently, Vice President Cheney openly
commented on the fact of the troops being here in Guam so that they
won't have to fight a war in the streets of America.
A 1945 secret memo (dtd 11/21/45 by Vice Adm. G.D. Murray Commander
of the Marianas Navy Force) reveals the US's real intention for Guam
which is military control for its military value. The 3-page memo
recommended the Navy's control of Guam and other western Pacific
islands.
There is no question that U.S. military interests take precedence
over our people's interests and that the status quo, better described
as a status of dispossession, is directly related to the issue of the
Pentagon's planned militarization of our homelands.
1st: Guam is taken as a colony during the Spanish-American War for
its U.S. military and strategic value.
2nd: Guam's resultant status is that of a colony, or as determined
in the Insular Cases (1901-22), ``a possession of but not a part of the
U.S.''
3rd: Guam's value is again misunderstood during/after WWII when
vast amounts of land were taken and decisions about disposition were
made unilaterally (Organic Act of 1950.)
4th: Guam's status under the U.N. Charter is that of Non Self-
Governing Territory or colony.
5th: Nothing has been done by Congress or otherwise, to change
Guam's fundamental colonial status. The Organic Act of 1950 reaffirmed
Guam's status as a possession and Guam remains a Non Self-Governing
Territory under the U.N.
6th: Current discussions about how Guam would be used by the U.S.
military are discussions within a decision; the decision to use Guam is
not one made in Guam or by Guam but by those who possess Guam and its
people.
Neocolonialist policies and the deliberate and careful undermining
of an unincorporated Guam has allowed the use of our lands for military
delivery systems, storage for nuclear weapons, home porting of nuclear
war ships and space warfare technologies. The militarization of our
homeland has had devastating effects on the health and welfare of our
people.
With all due respect to you as a Member of Congress, Madam Chair,
the people of Guam also need to be heard by actual voting
representatives who sit on the Armed Forces Committee. An investigation
of the Pentagon's build-up plan having an EIS for the ISR/Strike
capability at Andersen AFB and another EIS by the Navy is in order.
Further, we reiterate the need for a holistic EIS with requisite
social-cultural impact assessment, subsequent and cumulative impacts,
impacts from connected actions, timely public disclosure/public alerts
about depleted uranium and nuclear weapons in the EEZ and coastal
waters and one that ensures objective environmental information with a
genuine ``No Action Alternative''.
The impact of thousands of new residents and military assets within
the context of a colonial relationship is self evident in a small
island society. Furthermore, this influx is in contravention to
relevant UN resolutions on decolonization and the US's obligations as
Guam's administering Power. UN Plan of Action A/RES/60/120 (1/18/2006
Sec V.18) states that ``administering Powers should refrain from using
NSGTs for military bases and installations.''
We unequivocally object to our people being excluded in the federal
government's deliberations relating to this build-up and we ask that a
separate process be engaged for the colonized people of Guam to make an
informed and explicit decision about whether or not they want this
military build-up.
It is vital that decisions related to the U.S. military's plan be
framed from the point of view of a dependent people living within a
non-self-governing territory that is struggling to protect our
inalienable right of self-determination and preserve our national
identity. This must be the guiding principle of major decisions by the
U.S. Congress relative to Guam. My people deserve nothing less.
In closing, I leave you with an old Chamorro proverb: Isaona i
tumungo' ya ha sedi, ki ayo i mismo umisagui hao. Greater is the fault
of he who allows the injustice upon himself.
______
Mrs. Christensen. The Chair now recognizes Mr. San Nicolas
for five minutes.
STATEMENT OF BENNY P. SAN NICOLAS, CHAIRMAN,
GUAM SOIL & WATER CONSERVATION DISTRICTS
Mr. San Nicolas. Thank you.
Good morning, Honorable Congresswoman Madeleine Bordallo
and Honorable Congresswoman Donna Christensen. I, too, similar
to Senator Judi Won Pat, had to revise my written testimony
several times, so please bear with me.
On behalf of the Guam Soil and Water Conservation District,
thank you for the opportunity to provide testimony on the
significant issue of the U.S. Military buildup on Guam.
As members of the Guam Soil and Water Conservation
Districts, our main role is to protect and conserve the natural
resources of our island. We deal primarily with farming-related
issues and partner with such agencies as the U.S. Department of
Agriculture, Natural Resources Conservation Service, Farm
Service Agency, the University of Guam, and the Guam
Environmental Protection Agency.
There are several issues that are of primary concern to the
districts with regards to the proposed military buildup here on
Guam. Currently, they are infrastructure-related issues that
must be addressed in order to provide a consistent and
assessable supply of water to the island's farming community.
Preliminary information that has been provided to the
community indicates that the proposed buildup will be focused
on northern Guam, which has the largest population of island
residents. An assessment of the volume of water that is
available, the proper management of the northern aquifer, and
the distribution of our precious water resources for farmers
and residents, is very crucial.
The current water infrastructure limitations in northern
Guam have limited the ability of the farmers to expand and
consistently maintain crop operation. The Districts are
recommending that the military and the local community
prioritize the distribution infrastructure, water resource
management and the accessibility to water.
In Southern Guam, the issue is similar. The Districts are
concerned about the military's increased demand for water use
and its impact in southern residents and farmers. During dry
seasons, we have experienced a decrease in the amount of water
that is provided by the Navy to the local community.
We are aware that the military prioritizes water use for
its operations before water is distributed to island residents.
However, this issue needs to be further examined and addressed
to minimize adverse impacts on our local people, who are
dependent on these essential water resources.
To help alleviate this situation, we are recommending that
the military partner with the Guam Soil and Water Conservation
Districts to build more reservoirs in the southern villages. In
the village of Inarajan, in the village of Merizo, and in the
village of Umatac. The Districts are also recommending that the
military consider the recycling of wastewater which can be
converted as a source for irrigation for farmers.
Another key issue that is of primary interest to the
Districts is the access of locally grown farm products to the
military community. The Districts want to be included in direct
dialogue with the military community regarding our interest in
providing fresh local produce for military consumption. There
are mutual benefits that can be gained by both the military and
the farming community through a cooperative partnership.
The Districts are also recommending that the military
buildup address the issue of alternative types or renewable
energy generations, such as bioenergy, ocean wave energy, wind
power, and other sources of renewable energy. As new
infrastructure developments are put in place, the Districts
would also like to see greater consideration placed on
environmentally compatible development.
The Guam Soil and Water Conservation Districts are
interested in partnering with the military to address their
conservation plan. This major military buildup that is proposed
to occur in Guam in such a short time span will have a
significant impact on the lives of our people. As members of
the Guam Soil and Water Conservation Districts, we want to
ensure that the critical concerns of our people are addressed
and prioritized in the planning and implementation of the U.S.
Military buildup in Guam.
Thank you once again for providing the Guam Soil and Water
Conservation Districts an opportunity to provide testimony on
this very important issue.
Thank you.
Mrs. Christensen. OK. Thank you, Mr. San Nicolas.
[The prepared statement of Mr. San Nicolas follows:]
Statement of Benny San Nicolas, Chairman--Southern District,
Guam Soil & Water Conservation Districts
Dear Chairwoman Christensen:
On behalf of the Guam Soil & Water Conservation Districts, thank
you for the opportunity to provide testimony on the significant issue
of the, ``U.S. Military buildup on Guam and Challenges Facing the
Community.'' We are very appreciate of the time that you and the
members of your Subcommittee on Insular Affairs have taken to travel to
Guam and hear first hand the issues and concerns of our people with
regard to the proposed military buildup on our island.
As members of the Guam Soil and Water Conservation Districts we are
identified as an organization that primarily deals with farming related
issues. However, a significant part of our mandate is focused on
conservation and resource management related issues. The Northern &
Southern Soil & Water Conservation Districts on Guam partner with
Government of Guam Departments such as the Department of Agriculture,
Guam Environmental Protection Agency, Bureau of Statistics and Plans,
Department of Land Management, Department of Public Works and the
University of Guam. As Districts, we also maintain partnerships with
the U.S. Department of Agriculture, the Natural Resource and
Conservation Service and the Farm Service Agency.
There are a number of issues that are of primary concern to the
Districts with regard to the proposed military buildup here on Guam.
The most critical issue is directly related to our island's water
resources. The Districts are well aware that the proposed military
buildup will significantly increase the islands population and have an
impact on the water resources that are available on island. Currently
there are a number of infrastructure related issues that must be
addressed in order to provide a consistent and accessible supply of
water to the island's farming community. Of particular concern is the
accessibility and supply of water that is currently available to
farmers for irrigation and livestock in northern Guam. The preliminary
information that has been provided to the community indicates that the
proposed buildup will be focused in northern Guam. This is the very
area that has the largest population of island residents and has the
greatest impact on the use of the northern aquifer. The issue of
accessibility to water resources must be taken into primary
consideration as one of the most critical issues to be address. An
assessment of the volume of water that is available, the proper
management of the northern aquifer and the distribution of our precious
water resources is a critical concern to the local farming community
and island residents. The current water infrastructure limitations in
the northern part of the island have limited the ability of farmers to
expand and consistently maintain crop operations. The Districts are
recommending that in order to insure compatible development between the
military and the local community, the distribution infrastructure,
water resource management and the accessibility to water must be a top
priority.
This same concern also applies to southern Guam. The Navy provides
water to a number of residential households and farms in the southern
part of the island. The Districts are concerned about the impacts
increased demand for water use for the military will have on the
availability of water for southern residents and farmers. The Navy
currently provides water from the Fena Reservoir that is located on
military property. We have experienced in the past, especially during
the dry season of the year, a decrease in the amount of water that is
provided by the Navy to the local community. We are aware that the
military prioritizes water use for its operations before water is
distributed to island residents. However, this issue needs to be
further examined and addressed to minimize adverse impacts to our local
people who are dependent on this essential water source.
The Districts are also recommending that the military consider in
its buildup plans the recycling of wastewater that can be converted as
a source for irrigation. If new wastewater plants are to be constructed
to handle the increased military population, the current practice of
wastewater treatment and discharge into the ocean only further depletes
reusable water resources. The Districts would like to see a more
integrated approach for the development and management of water and
wastewater resources that will take into mutual consideration the
impacts and benefits to both the military and the local community.
Another key issue that is of primary interest to the Districts is
the access of locally grown farm products to the military community.
The Districts want to be included in direct dialogue with the military
community concerning our interest in providing fresh local produce for
military consumption. The Districts are of the position that the local
economy can be further stimulated and directly benefit from the
military investment as a customer of locally grown products. There are
mutual benefits that can be gained by both the military and the farming
community through a cooperative partnership. The Districts would also
like to work with the military to further address the issue of food
security and the ability to provide food commodities that can be
produced on island. With our distance from major shipping ports, it is
in our mutual interest to increase local food production to provide for
both the civilian and military population.
The Districts are also recommending that the military buildup
address the issue of alternative types of renewable energy generation
such as bio energy, ocean wave energy, wind power and other sources of
renewable energy as part of its buildup operations. We are aware that
the military is already pursuing alternative energy infrastructure at
other base operations in the mainland. We would like to see the
military integrate alternative energy models into their buildup
operations in Guam.
As new infrastructure developments are put in place the Districts
would like to see greater consideration being placed on environmentally
compatible development. The Guam Soil & Water Conservation Districts
are interested in partnering with the military to address the
development of their conservation plan to address the military
expansion plans for Guam. During the National Association of
Conservation Districts Meeting just recently held in Washington D.C. in
July, we shared our concerns with our fellow District members across
the nation of the potential impacts such a significant military buildup
will have on our small island. Our National President, Olin Sims
further shared our concerns on July 24, 2007 in a meeting with
representatives at the Pentagon to encourage a greater partnership
between the military and the Conservation Districts. In the area of
conservation, we would like to move forward with a progressive
partnership with the military.
It is very important to remember that the impact of the proposed
military buildup is not limited to behind the fence base operations.
This major military buildup that is proposed to occur on Guam in such a
short time span will have significant impact on the lives of our
people. As members of the Guam Soil & Water Conservation Districts we
want to insure that the critical concerns of our people, particularly
with regards to conservation issues, are addressed and prioritized in
the planning and implementation of the U.S. military buildup on Guam.
Thank you again for providing the Guam Soil & Water Conservation
Districts the opportunity to provide testimony on this very important
issue.
______
Mrs. Christensen. The Chair now recognizes Mr. Ruder to
testify.
STATEMENT OF STEPHEN RUDER, CHAIRMAN,
GUAM CHAMBER OF COMMERCE
Mr. Ruder. Thank you.
Honorable Chairwoman Christensen, Congresswoman Bordallo,
my name is Stephen Ruder, and I'm honored to have been invited
to address this hearing. I'm a small businessperson and have
lived and worked on Guam for 20 years. I'm proud to call Guam
home.
I'm also privileged to be delivering testimony today on
behalf of the Guam Chamber of Commerce in the capacity as
Chairman of the Board of Directors. The Guam Chamber of
Commerce is comprised of over 325 individual businesses
representing all sectors of the business community. Our members
collectively employ roughly 40,000 island residents. Over half
of our members come from small businesses with annual gross
revenues less then $1 million. Our combined membership
generates $2 billion annually in economic activity, or
approximately 70 percent of Guam's gross island product. We
also engage the community in worthwhile civic endeavors.
For the past 83 years, the Guam Chamber of Commerce has
believed that what's good for the community is good for
business. The Guam Chamber of Commerce recently commissioned a
professional research company in late March of this year to
conduct a statistically valid quantitative survey among island
residents to ascertain community support for and attitudes
about the planned military buildup. Survey methodology produced
statistically accurate results within a plus or minus 4 percent
margin of error.
The purpose of the study was to gauge community temperament
more objectively and accurately than what may have been or
continues to be portrayed by a vocal minority and the political
support or media attention that they attract. Results from the
survey show that, and I'll just summarize some of the brief
results;
(1) A majority, or 71 percent, of Guam residents polled
support in increased military presence, (2) Nearly 80 percent
of Guam residents polled feel the increasing military presence
will result in additional jobs and tax revenue, and (3) nearly
two-thirds of Guam residents polled feel the additional Marines
on island will have a positive effect and ultimately improve
the island's overall quality of life.
Judging from the results of this survey, it is clear that a
majority of Guam residents support a larger military presence
on the island. And while 19 percent of those surveyed do not
know whether the Marine relocation will improve the island's
quality of life, we believe that most in this category will
react positively if they know that the revenue improvements
associated with relocation will be dedicated to the funding of
various public facilities and enhancing the quality of life for
everyone.
The Chamber believes that the U.S. Military buildup will
impact the island's civilian infrastructure, the magnitude of
which will require significant external assistance. The nature
of this outside help centers on institutional expertise, as
well as the comprehensive funding strategy involving private
sector participation to support an integrated upgrading of
Guam's infrastructure.
As discussed earlier, the Commercial Port is often called
the long pole in the tent because of the importance to the
success of the buildup. That said, our port is substantially
behind in its thru put capacity. To quickly provide facilities
able to meet the demand will require some type of comprehensive
commercial venture to develop, fund, construct and perhaps
operate a contemporary port.
Increasing Guam's ability to support the planned military
buildup in the next 7 years will also require a surge in
construction capacity. Therefore, it will be important for the
Federal Government to develop a comprehensive construction
program to provide local business opportunities to facilitate
the use of major off-island contractors and temporary workers,
and to partner with local institutions, including the Guam
Contractors Associations Trades Academy, to expand and
intensify training programs that will produce the local skill
labor required to meet the demand today and, more importantly,
in the future.
The socio-economic environmental impact from the buildup
will be reduced, given that various elements of the planned
buildup occupy customized land-use footprints spread throughout
Guam and the islands of the CNMI. There are already some of
these in place, as in the case with the FDM bombing range, and
the enhanced capabilities at Andersen Air Force Base and Naval
Base Guam.
The island's primary revenue source today is tourism, which
accounts for 20,000 jobs, and we must do everything possible to
protect this fragile industry. Approximately 80 percent of
Guam's 1.2 million visitors come from Japan. Recent research
commissioned by the Guam Visitors Bureau indicates that the
image of Guam and Japan would not be harmed by the buildup;
that's the good news. The bad news is that Japan, our largest
market, is a market in decline on Guam. It is essential that
the expansion of Guam's tourism industry remain a significant
priority, even as the planned military buildup moves forward.
The Guam-Only Visa Waiver Program is a crucial tool to
growing new markets. Your support to expanding the Guam-Only
Visa Waiver Program is crucial. As the buildup moves forward,
the business industry will also be coping with the immediate
demand for labor, and Congress must be sensitive to wage-driven
competition and eroding the industry's workforce too deeply.
This would be to the detriment of an industry already competing
in a lower East Asian business environment.
In summary, the same attributes that make for a healthy
resort environment are identical to those that make Guam
attractive for the relocation of military personnel. As we
continue to work together toward expanding our economy and
enhancing the quality of life for all of our community, there's
bound to be short-term and temporary inconveniences. But these
disruptions, whether socio-economic, environmental, should not
be the reasons to forfeit the long term benefits of our
national security interest and the economic well-being in Guam.
To this end, the Guam Chamber of Commerce pledges its full
support for the planned U.S. Military buildup.
Thank you for the opportunity.
Mrs. Christensen. Thank you, Mr. Ruder. I got it right the
second time.
[The prepared statement of Mr. Ruder follows:]
Statement of Stephen C. Ruder, Chairman of the Board,
Guam Chamber of Commerce
INTRODUCTION
Honorable Chairwoman Christensen, Congresswoman Lee, and
Congresswoman Bordallo, my name is Stephen C. Ruder, I am the
Proprietor of Ruder Integrated Marketing Strategies, a local marketing
and business consultancy. I have lived and worked on Guam for twenty
years and am proud to call Guam home.
I am here, however, in my capacity as Chairman of the Guam Chamber
of Commerce Board of Directors. Our chamber membership is comprised of
over 300 individual businesses representing all sectors of the business
community, which collectively employ 40,000 island residents in the
private sector. About 52% of our members come from small businesses,
but our combined membership generates $2 billion annually in economic
activity or approximately 70% of Guam's Gross Island Product.
Thank you for the invitation to participate at today's oversight
field hearing on the ``U.S. Military Buildup on Guam and Challenges
Facing the Community.''
Public discussion regarding the U.S. military buildup in the
Marianas is the most significant issue ever to touch our shores in
recent memory. And the debate that will arise from these oversight
meetings is sure to give pause to the notion that the Proposed Action
can be undertaken without difficulty. Good things never come easily.
The Proposed Action is multifaceted in scope, broad in expectation
and intensity, and of obvious significant impact to the islands of
Guam, the Commonwealth of the Northern Marianas and the island states
of Micronesia. But properly aired, we believe that most (if not all) of
the issues raised can be addressed in good faith, balanced within the
context of national security, and sensitized to community sentiments.
COMMUNITY SUPPORT
The Guam Chamber of Commerce in late March 2007 commissioned QMark
Research and Polling to conduct a statistically valid quantitative
survey among island residents to ascertain community support for, and
attitudes about, the planned military buildup. QMark's survey
methodology produced statistically accurate results within a 4% margin
of error. This was done to gauge community temperament more objectively
and accurately than what may have been (or continue to be) portrayed by
a vocal minority and the political support or media they attract.
Results from this survey show that:
1. A majority (71%) of Guam residents polled support an increased
military presence, 14% opposed, and 15% were either neutral (9%) or
don't know (6%);
2. Nearly 80% of Guam residents polled feel the increasing
military presence will result in additional jobs and tax revenue (79%);
and,
3. Nearly two-thirds (60%) of Guam residents polled feel the
additional Marines on the island will have a positive effect, and
ultimately improve the island's quality of life. Of the remainder, 21%
feel the opposite and 19% don't know.
Judging from the results of this survey it is clear that a majority
of Guam residents support a larger military presence on the island. And
while 19% of those surveyed do not know whether the Marine relocation
will improve the island's quality of life, we believe that most in this
category will react positively if they know that revenue improvements
to the island will be dedicated to the funding of various public
facilities and enhancing the quality of life for everyone.
PHYSICAL INFRASTRUCTURE AND SKILLED LABOR
The Guam Chamber of Commerce believes that the U.S. Military
buildup will impact the island's civilian infrastructure, the magnitude
of which will require significant external assistance. The nature of
this outside help centers on institutional expertise, in short supply
locally, as well as a comprehensive funding strategy to support an
integrated upgrading of Guam's power grid, water and sewer systems,
solid waste disposal, roadway network, and the housing and community
support facilities that come with the anticipated population growth. By
some accounts, the island's population could grow potentially by 20% to
about 200,000 residents by 2015.
For various reasons, the local government is clearly incapable of
addressing these needs or managing and funding their development in the
compressed time required. Given this situation, it would be prudent to
``turn key'' or otherwise ``broker'' private sector participation in
this islandwide infrastructure upgrade by leveraging the military's
investments, together with private capital and federal funds, to which
the island is already entitled, in a manner that can either:
a. Support the commercial viability of infrastructure upgrades,
i.e. housing, commercial port, water, sewer, solid waste disposal; or
b. Maximize federal and non-local funding sources for highways,
bridges, telecommunications, and various social programs affected by
the build-up in military personnel.
The Commercial Port is often seen as the ``long pole'' in the tent
because it is substantially behind in ``thru put'' capacity for the
billions worth of construction supplies, materials and equipment that
will be brought into the island. To quickly provide facilities which
will be able to dock the ships, off-load the cargo, and expand storage
capacity will require some type of comprehensive commercial venture to
develop, fund, and construct/operate a contemporary port operation,
including the expansion of the current facility. The demand for
aggregate/cement alone on Guam will be overwhelming, such that
additional production would have to be developed. While our neighboring
Islands have plant facilities to produce cement at prices comparable to
Guam, we would have to address shipping and handling charges both here
and in the CNMI to be sure that such expenses do not become
prohibitive. Indeed, it would seem that higher volume will cause these
charges to drop significantly to the benefit of other users as well.
Building up Guam's capacity to support the planned military buildup
in the next 7 years will require a ``surge'' in construction capacity,
the magnitude of which the islands of Guam and the CNMI do not
currently possess. Therefore, it will be important for the Joint Guam
Program Office (JGPO) to develop a comprehensive construction program
to:
a. Facilitate the use of major off-island contractors and
temporary workers;
b. Partner with local institutions to expand and intensify
training programs that will produce the local skilled labor needed to
maintain the facilities built and other invested capacity; and,
c. Provide local business opportunities.
SOCIO ECONOMIC AND ENVIRONMENTAL IMPACT
The socio economic and environmental impact from the U.S. military
buildup can be reduced, mitigated, or otherwise muted to the extent
that various elements of the planned buildup occupy ``customized'' land
use footprints spread throughout Guam and the islands of the CNMI.
There are already some of these in place, as in the case of the FDM
bombing range, and the enhanced capabilities at Andersen and Naval Base
Guam.
The buildup of training facilities in the CNMI to store equipment
used for training, for instance, can complement the Chamber's concept
of ``Labor Collaboration'' which envisions labor intensive work such as
the prefabrication of buildings using pre-stressed concrete and wood
work, which:
a. Can greatly reduce the intensity of logistical and congestion
issues on Guam;
b. Employ excess barracks and housing facilities now left vacant
in the CNMI from the departure of foreign garment factory workers; and,
c. Reduce the social impact of thousands of foreign laborers on
Guam.
This is an example where significant labor and training impacts are
mitigated through dispersion, while simultaneously providing economic
and employment benefits to the CNMI at a time when their economy is in
desperate need of alternatives and their tourism industry is in a
decline.
We do not view the socio economic impact of the Proposed Action to
be a major issue, given the fact that:
a. There were over 20,000 more military personnel on Guam, post
Vietnam, when the island's population was about half the current number
of about 165,000;
b. Fewer recreational facilities and family amenities existed at
that time; and,
c. Large tracts of land and underutilized facilities on U.S.
Government property still exist today following ``BRAC'' closures many
years ago.
TOURISM IMPACT
The island's primary revenue source today is tourism, which
accounts for 20,000 jobs and one third of the island's employment. In
coping with the immediate demand for labor, JGPO must be cognizant of
the ``wage driven'' competition and eroding the island's tourism work
force too deeply, to the detriment of an industry competing in a lower
wage East Asian business environment.
It will also be important to ensure that the buildup will not cause
long-term deterioration of the island's marine attractions such as
popular dolphin watching tours, parasailing, banana boating, scuba
diving, and cultural or historical attractions.
Approximately 80% of Guam's 1.2 million visitors come from Japan.
Because of this, the Guam Visitors Bureau last year commissioned Japan
Market Intelligence (JMI) to gauge the sentiments of the island's Japan
market. Results for this study showed that over 60% of respondents were
aware of the movement of military troops from Japan to Guam and less
than 10% of those viewed this negatively. With respect to Guam's image
as a leisure destination, JMI found little effect on Guam's image as a
vacation destination. In fact, fully 94% of those surveyed either did
not change their image (62%) of Guam as a vacation destination or felt
(32%) Guam's image would be better.
Forty years ago, with the first planeload of tourists, came a
renaissance of our culture. The emergence of an increased presence of
the military can create a new paradigm of self discovery. In that
regard we hope that special attention can be given to significant
historic and archeological sites, which now exist on military property,
and should be made accessible to visitors and residents alike whenever
possible.
Planned exercises on the ground, air and sea can be maximized
because of minimum air and ocean encumbrances, but will require close
collaboration with the tourism industry to ensure adequate safety at
minimum cost to all.
The island is a beach resort leisure destination that thrives on a
clean, pollution free, natural environment. While we recognize that
today the military are excellent stewards of the environment, it will
be important to ensure that:
a. Training and other exercises keep these destination assets in
mind;
b. The construction and use of defense facilities minimize visual
blight, noise and air or water pollution; and,
c. Collaborative efforts are made to enhance both the attractions
and the ambience for the use and enjoyment of all.
The same attributes that make for a healthy resort environment are
identical to those that also make Guam attractive for the relocation of
military personnel and their accompanying families and support staff.
And the island's ability to preserve, showcase, and otherwise promote
Guam's unique cultural heritage is enhanced to the degree that the
island's improved economy will provide incremental tax revenues that
can sustain such an effort profitably.
GUAM CHAMBER OF COMMERCE SUPPORT
As we continue to work together toward expanding our economy and
enhancing our quality of life in the community, both local and military
leaders must recognize the inherent changes in this growth as well as
the short term and temporary inconveniences that will be produced. But
these short term disruptions, whether socio economic or environmental,
should not be the reasons to forfeit the long-term benefits of our
national security interests and the economic well-being of the island.
To this end, the Guam Chamber of Commerce pledges its full support
for the planned U.S. military buildup, subject to the reasonable
adjustments required to satisfy mutual concerns of the military and
residents of Guam and the CNMI.
As an organization of more than 300 businesses, from all sectors of
the Guam economy employing more than 40,000 people, and generating $2.1
billion annually to the island economy, we stand ready to assist in
facilitating the best possible decisions and choices that will affect
our long term mutual interests and concerns.
Thank you for providing us the opportunity to express our views.
______
Mrs. Christensen. The Chair now recognizes Ms. Leberer to--
--
Ms. Leberer. Uh-huh, that's right.
Mrs. Christensen --for five minutes.
STATEMENT OF TRINA LEBERER, MARINE CONSERVATION COORDINATOR,
MICRONESIA PROGRAM, THE NATURE CONSERVANCY OF GUAM
Ms. Leberer. Madam Chairwoman and Congresswoman Bordallo,
thank you for the opportunity to testify. My name is Trina
Leberer and I am the Marine Conservation Coordinator for the
Micronesia Program of the Nature Conservancy. I have lived and
worked on Guam for the past 13 years, including 7 years with
the Government of Guam Division of Aquatic and Wildlife
Resources and now nearly 3 years with TNC.
The Nature Conservancy has been working in Micronesia for
17 years. The way we work in Micronesia differs from our work
in the U.S., in that we do not own or manage sites ourselves,
but instead support and assist with the work of our local
partners.
The testimony I am providing today incorporates some of the
needs and concerns of many of our local resource partners on
Guam. It is critical that the community and local resource
agencies are involved throughout this process.
The planned U.S. Military buildup on Guam is unprecedented
in terms of scale and timing. Our island population is
estimated to increase by 40,000 people, an increase of nearly
24 percent over the next 8 years, as a direct result of the
military expansion. This figure does not include the expected
increase in the general population associated with this large-
scale development.
For an island of only 212 square miles, this would be a
huge shock to our system. It will require innovative solutions,
full participation by all stake-holders, and a commitment from
the Department of Defense, other Federal agencies and the local
government, to move beyond merely managing the impact, and
strive for a clear net benefit to the people, culture,
sustainable economy, and natural resources of Guam. To be
successful, full transparency, active communication, and a
spirit of cooperation and trust among all concerned will be
required.
In my written testimony, I provided a brief analysis of the
current situation and specific recommendations on several key
issues, which I will summarize today. First, Cumulative Impacts
and Compensatory Mitigation.
As Congresswoman Bordallo noted, Congress needs to support
early an adequate funding to compile comprehensive baseline
data and a fully integrated analysis by DOD and Federal and
local regulatory agencies considering the direct and indirect
cumulative impacts of this buildup required under NEPA.
DOD, Federal Regulatory Agencies, and Congress must also be
receptive to alternative forms of compensatory mitigation, such
as the possibility of using some mitigation funding to build an
endowment for long-term sustainable financing of Natural
Resource Management on Guam.
Information Availability in Dissemination. Local agencies
and the community need timely information to fully assist the
expansion and provide comments at a point in the process when
it is still practical for DOD to modify and improve plans based
on that input.
Congress must be willing to give DOD additional flexibility
in project funding and implementation so they can incorporate
public input in the very short timelines they are facing.
Support for Increased Resource Agency Capacity. Congress
should support releasing a portion of DOD project funding to
local and Federal resource agencies prior to EIS completion so
that they can properly assess alternatives and plan for
mitigation actions.
Congress and Federal resource agencies must work to
increase allocations under current Federal grants to support
the increase in local operational capacity required to address
impacts to Guam's natural resources, resulting from the
military buildup, and ancillary private sector development.
Invasive Species. In response to the elevated risk due to
the expansion, DOD needs to implement expanded internal
programs to control, eradicate, and prevent to spread of both
terrestrial and marine invasive species.
The U.S. Departments of Agriculture and Homeland Security
Customs Border Patrol need to support the Governments of Guam
and the CNMI to achieve a higher level of prevention and
quarantine capacity.
Ancillary Impacts. In addition to direct impacts from the
military buildup, there will be a need for an estimated 12,000
to 15,000 construction workers, and with approximately 75
percent coming in from off-island, they will have an impact on
our utilities, government services, and coastal fishery
resource as they fish to supplement their diet.
DOD and the local agencies need to develop joint programs
to educate all active military, their dependents, and contract
workers on Guam's environmental laws, and the value of Guam's
natural resources.
Green Infrastructure. As Congresswoman Bordallo pointed
out, DOD should follow guidelines in the lead Green Building
Rating System for new construction and major innovations in the
design of all new military construction, including the use of
green belts, renewable construction materials, water
catchments, and alternative energy sources.
Sustainable Drinking Water. As has been brought up before
as well, Congress should support funding for a comprehensive
baseline study to determine the recharge rates and water
quality for the Northern Guam Aquifer, our main drinking water
source.
In light of the military buildup and as a substantial land
owner on Guam, DOD must play a critical role in protecting our
aquifer and the other main drinking water sources in Southern
Guam, through such actions as watershed planning and
restoration.
Public Shoreline Access. An expansion in military
installations and associated security measures may result in
the further restriction of public access to coastal and marine
resources.
We encourage DOD to work with local agencies and the
community to identify opportunities for collaboration and joint
planning to protect and enhance public shoreline access.
This military buildup poses some of the biggest challenges
to Guam's vision to achieve healthy natural resources available
for the sustainable use of ours and future generations.
Creative solutions will be required to turn this tremendous
challenge into an equally tremendous long-term opportunity for
the people, culture, sustainable economy and natural resources
of Guam and Micronesia as a whole.
Again, thank you for the opportunity to testify and I hope
this testimony will be useful to assist you with addressing
some of the very real challenges facing the community as we
prepare for the military buildup on Guam.
I would be pleased to answer any questions.
Mrs. Christensen. Thank you, Ms. Leberer.
[The prepared statement of Ms. Leberer follows:]
Statement of Trina Leberer, Marine Conservation Coordinator,
The Nature Conservancy, Micronesia Program
Madam Chairwoman and distinguished members of the Committee, thank
you for the opportunity to testify on the ``U.S. Military Buildup on
Guam and Challenges Facing the Community.'' I'd also like to take the
opportunity to express our appreciation to the Congressional leadership
in creating a Subcommittee on Insular Affairs and to all of the island
delegates for their strong leadership. My name is Trina Leberer, and I
am the Marine Conservation Coordinator for the Micronesia Program of
The Nature Conservancy. I have lived and worked on Guam for the past 13
years, including 7 years with the Government of Guam Division of
Aquatic and Wildlife Resources and now nearly 3 years with TNC.
The mission of The Nature Conservancy is to preserve the plants,
animals and natural communities that represent the diversity of life on
Earth by protecting the lands and waters they need to survive. TNC has
been working in Micronesia for 17 years. The vision of our Micronesia
Program is: The people of Micronesia conserving and effectively
managing their natural heritage. The way we work in Micronesia differs
from our work in the US, in that we do not own or manage sites
ourselves, but instead support and assist with the work of our local
partners.
The testimony I am providing today incorporates some of the needs
and concerns of many of our local resource partners on Guam. It is
critical that the community is involved throughout this process, both
directly and through the representation of the government agencies
mandated to protect and sustainably manage the natural resources of the
island on their behalf. We applaud this Committee's willingness to meet
with various segments of the community this past week and encourage the
Department of Defense to hold additional public meetings as more
detailed information on the expansion is available.
The planned U.S. military build-up on Guam is historic in terms of
scale and timing. According to the most recent information provided to
the Government of Guam, our island population is estimated to increase
by 40,000 people over the next eight years as a direct result of the
military expansion. Based on our 2005 population estimate of 167,974
this is a nearly 24% increase. This figure does not include the
expected increase in the general population associated with this large-
scale development and the expected economic boom. For an island of only
212 square miles, this will be a huge shock to our system that will
require innovative and creative solutions, full participation by all
stakeholders, and a willingness on the part of all concerned, and
especially the Department of Defense and other federal agencies, to
move beyond ``business as usual'' and to set as the key objective not
merely ``managing the impact'' or ``mitigation'', but a true commitment
to ensuring that at the end of the day the entire project results in a
clear net benefit to the people, culture, sustainable economy, and
natural resources of Guam and indeed the entire Micronesia region.
There must also be full transparency and a conscious purpose of
developing trust among all concerned.
In the midst of this incredible growth, we must ensure the
protection of our island's natural resources, not only because of their
intrinsic value, but because they form the foundation upon which we
depend culturally, economically, and for our quality of life. This
means first and foremost that we must avoid irreversible negative
impacts to the environment wherever possible. When avoidance is
impossible, then we must ensure not only adequate and appropriate
compensatory mitigation, but also positive steps resulting in a clear
net enhancement of the quality of, and reliable long-term protection
for, our natural resources.
Cumulative Impacts and Compensatory Mitigation
The Department of Defense needs to strengthen their assessment of
cumulative impacts in order to meet the requirements of the National
Environmental Policy Act (NEPA) and make better informed decisions
about project alternatives and compensatory mitigation. In previous
years, there has been a tendency for the Department of Defense to
manage projects individually or in phases, including the determination
of appropriate compensatory mitigation for each individual project.
This approach is simply inadequate for a project of the size and
complexity of the proposed military build-up, especially given the
highly inter-related and fragile nature of the natural resources on
Guam and in the lands and waters of Micronesia as a whole. A fully
integrated analysis, considering the true cumulative effects, both
direct and indirect, of this enormous project, and with full
participation by participating and supporting federal agencies, is
precisely what NEPA requires. It is also precisely what is needed to
ensure that the military build-up results in a clear net benefit to the
people, culture, sustainable economy, and natural resources of Guam and
Micronesia as a whole.
There is also a challenge, frankly, for the Congress itself to be
willing to create the political and funding environment that will allow
for truly effective public participation and will allow the Department
of Defense to proceed in a manner that meets not only the letter of,
but also the spirit and intent of NEPA. Advance funding to allow
comprehensive baseline data is part of that challenge. Broad oversight
across multiple committees of jurisdiction in the Congress to ensure
adequacy of funding not only for the Department of Defense but also for
other key federal agencies will be both difficult politically and
essential to a successful project. Enabling legislation to allow
funding of endowments for long-term stewardship of natural resources
will be important and politically challenging both within the Executive
branch and in the Congress.
Another part of the challenge facing Congress will be the need to
recognize that the long lead times and project specificity normally
associated with projects funded through the Military Construction
(MILCON) process may require modification to provide the Department of
Defense the kind of flexibility and agility that will be necessary to
ensure that the project as a whole is one of true partnership between
the Department of Defense and the government and people of Guam. The
timeline for this project, driven in part by political commitments
given to Japan with regard to the timing of relocation of U.S. forces
now stationed on Okinawa, combined with the need to adjust project
planning based on public input and additional data as the project
progresses, simply may not fit within the normal procedures and long
lead times associated with the MILCON process
We recognize that this current build-up is comprised of a myriad of
projects under several branches of the Department of Defense, and as
such there have been or will be separate Environmental Impact
Statements prepared for each project, or in some cases a related group
of projects such as the proposed training activities in Guam and the
Northern Marianas. Unfortunately, it is unclear how the overall
planning process will ensure the adequate identification and assessment
of the cumulative environmental impacts from these individual projects.
To help ensure the sustainable management of the natural resources of
Guam for future generations, the Department of Defense needs to truly
identify and quantify the cumulative impacts, minimize those impacts
where feasible, and, where avoidance or minimization is not feasible,
address those impacts with actions that not only mitigate for those
impacts but result in a clear net benefit.
In addition, the Department of Defense, Regulatory Agencies, and
Congress need to be receptive to alternative forms of compensatory
mitigation in order to achieve meaningful results. There has been a
preference for onsite mitigation or mitigation within the immediate
vicinity of the project. For example, if a certain acreage of coral
will be dredged, then the proposed mitigation might include coral
transplantation or the placement of artificial reef-like structures in
the vicinity of the dredged area. Unfortunately, the proposed
mitigation methods often fail to compensate for the lost ecological
function of the impacted reef, even under the best of circumstances.
Furthermore, onsite mitigation in a place like Apra Harbor, where
future proposed projects require additional dredging, is not prudent as
any benefits from mitigation may be undone by future development. A
more recent approach to compensatory mitigation has been to provide a
set of viable options. Although this is a better approach, the
applicant still has the ability to choose any of the viable
alternatives, even if the selection is not the best option for
achieving replacement value of the resources lost. Finally although
past mitigation has resulted in an overall loss of terrestrial and
marine natural resources, new mitigation options now make it possible
to scale against loss and this should be required when determining the
level of mitigation required.
Therefore, we support the local Guam agencies plea for creative
alternatives to onsite compensatory mitigation options and that they be
allowed to select the best alternatives, such as off-site watershed
restoration and the banking of mitigation funds using an appropriate
mechanism, such as a Guam sub-account in the Micronesia Conservation
Trust. The MCT is a regional organization committed to long-term,
sustainable funding to support biodiversity conservation and related
sustainable development for the people of Micronesia.
Information Availability and Dissemination
The public and local resource agencies often do not receive enough
information about Defense projects to provide meaningful input during
the EIS process. When they do receive detailed information, they either
are not provided with enough time to review the information and
adequately address the myriad impacts to the island's natural resources
or the opportunity occurs too late in the process to facilitate
implementation of new alternatives. Although we have known that several
proposed projects associated with the military build-up will negatively
impact our natural resources such as coral reefs and native forests,
the information provided was not detailed enough for assessing and
adequately addressing the cumulative impacts.
The information available in the latest series of public meetings
and open houses for the upcoming expansion was extremely vague and thus
precluded the submission of meaningful comments about specific sites.
Any requests for more specific information about the area requirements
or exact numbers were dismissed. Individuals were instructed to wait
for the draft EIS and make comments then. Unfortunately, once the plans
for proposed projects reach this stage, the time given for review and
response is usually insufficient for capacity-strapped local and
federal regulatory agencies to thoroughly review and assess all
alternative actions. In addition, especially in the case of Apra
Harbor, there is no comprehensive set of pre-expansion, baseline data
for the extensive coral reef and fishery resources, the hydrodynamic
processes, stakeholder use patterns, or current sediment and water
quality. This makes it extremely difficult to again assess the
cumulative impacts of the recent and proposed projects in the Harbor.
Early and adequate funding from the Department of Defense and other
relevant federal agencies to enable compilation of a comprehensive set
of baseline data will be vital if the process is to be successful.
The core of the NEPA process is full transparency and public
participation well before agency plans are ``finalized'' so that the
agency is in fact in a position to truly consider input received and
adjust initial plans in light of that input. In this complex situation,
the Department of Defense must work actively to achieve greater
transparency immediately and throughout the planning process. Local
agencies and the community need timely information to fully assess the
expansion and provide comments regarding project-specific and
cumulative impacts at a point in the process when it is still practical
for the Department of Defense to modify and improve plans based on that
input. Congressional willingness to give the Department of Defense
additional flexibility in project funding and implementation so that
the Department can incorporate public input on the very short timelines
it is facing will be critically important.
Support for Increased Resource Agency Capacity
This expansion is unprecedented in its size and scope and the
impacts to Guam's natural resources will be numerous and diverse. The
local and federal resource agencies are tasked with assessing the
alternatives presented by the Department of Defense and providing
mitigation options. However, their current lack of capacity, both human
and monetary, will greatly hinder their ability to complete these
tasks. This problem will be greatly exacerbated if they are forced to
operate under short deadlines and insufficient planning information.
Because of these limitations, it would be beneficial if the
Congress could release a portion of the Department of Defense funding
for these projects to the local and federal resource agencies so that
they can address the need for proper assessment of alternatives and
planning for mitigation actions. In addition, the federal agencies and
the Congress should consider the necessary increase in operational
capacity for local natural resource management agencies and
organizations, associated with the preparation for and eventual
increase in population, both in military personnel and in general, and
the associated development that the island will experience in the next
several years. To assist the local agencies, allocations for existing
federal grant programs such as the NOAA coral and coastal zone grants,
the Forest Service Pacific Island grants, the U.S. Fish and Wildlife
Service state wildlife, coastal conservation, endangered species and
invasive species grants, EPA grants, and Capital Improvement Grants
under the Office of Insular Affairs should be increased to levels based
on Government of Guam capacity needs assessments currently being
developed. These additional funds should be made available for direct
implementation of projects on-the-ground, including the need for
increased enforcement of conservation laws. Federal agencies should
also consider devoting technical staff to assist the local resource
agencies in this unprecedented military development.
Finally, in the past, the local natural resource agencies have been
denied access on the military bases to conduct surveys and assessments
of marine, terrestrial, and endangered species resources. With the
increase in military buildup, these surveys are vital to ensure the
conservation and protection of the resources. The Department of Defense
needs to coordinate with the local natural resource agencies and
provide access onto the military base to conduct these surveys and
assessments.
Invasive Species
Throughout the planning process, special attention should be paid
to invasive species issues, including the brown tree snake and marine
invasives. The increase in personnel and training activities, and
subsequent traffic in and out of the ports of Guam, associated with the
military build-up will increase the risk of the spread of invasive
species across the region tremendously. Currently over $10 million per
year is spent on brown tree snake (BTS) control and eradication alone.
Guam has suffered severe economic impact, numerous species extinctions
and a major ecological disaster due to this invasive reptile. The BTS
is directly responsible for the extinction or local extirpation of 9 of
12 native forest bird species and 3 of 12 native lizard species in
Guam. It also preys upon an endangered fruit bat of which fewer than
300 individuals are left in the wild.
BTS climb utility poles and cross electrical power lines, causing
numerous power failures each year. From 1978 to 1997, BTS caused more
than 1600 power outages. Recently the rate has increased to nearly 200
outages per year. These power outages cost millions of dollars in
damaged equipment, lost productivity, repair costs and reduced income
from tourism each year.
The high densities of BTS on Guam, combined with Guam's importance
as a shipping hub, make the spread of BTS from Guam a critical threat
to other Pacific Islands such as Hawaii, the Commonwealth of Northern
Marianas Islands (CNMI), Samoa, the Freely Associated States (Palau,
Federated States of Micronesia, and the Marshall Islands), and
subtropical regions of the U.S. mainland. In the last ten years, BTS
have been sighted on Tinian and Saipan (both islands of the CNMI).
Since 1982 there have been 69 credible BTS sightings and 13 captures in
the CNMI. A total of eight BTS have been found in Hawaii since the mid
1980's, but no live snakes have been found on Hawaii since 1994, thanks
to Congress' support for full implementation of U.S. Department of
Agriculture's (USDA) Animal and Plant Health Inspection Service (APHIS)
Wildlife Services (WS) interdiction activities. All snakes found on
Hawaii were associated with the movement of civilian and military
vehicles or cargo from Guam. In addition, BTS have been credibly
sighted, captured, or found dead in the following locations: Corpus
Christi, Texas; Anchorage, Alaska; Wake Island, Pohnpei, FSM; Darwin,
Australia; Diego Garcia (British Indian Ocean Territory); Taiwan;
Okinawa, Japan; and Rota, Spain. The potential cost of a BTS invasion
is immensely high. A University of Hawaii economic study recently
estimated that the introduction of BTS to Hawaii could cost the state
between $29 million and $405 million annually.
Recently Deputy Assistant Secretary of the Navy for Environment
Donald Schregardus traveled throughout Micronesia and discussed the
possibility of conducting future training exercises in the freely-
associated states, increasing the risk further. Prevention is always
preferable and more cost-effective than attempts at control or
eradication. The islands in the region have already started to work
together on this issue, forming the Regional Invasive Species Council.
Teams from several islands, including Guam are members of the Pacific
Islands Invasive Learning Network, which was launched with U.S.
government support. Guam and the region need continued technical and
financial support from the U.S. government to develop and implement
appropriate and cost-effective prevention and rapid response efforts.
In addition, the Department of Defense needs to implement expanded
internal programs to control, eradicate, and prevent the spread of both
terrestrial and marine invasive species. For example, currently there
is no bilge-management plan in place for their port operations. DOD
should develop and implement a plan and assist the Port Authority of
Guam to do the same, to prevent the spread of marine invasive species.
Further, the Governments of Guam and the Northern Mariana Islands need
the support of the U.S. Departments of Agriculture and Homeland
Security-Customs Border Patrol to allow a higher level of prevention
and quarantine capacity to protect themselves from new introductions of
invasive pests that could threaten the fragile natural systems,
economies and lifestyles of these islands.
Ancillary impacts
As Guam has experienced in the past, ancillary development in the
private sector will accompany the military build-up as investors
speculate on the expected economic growth. For example, there is
already 1 new large-scale development planned for an area encompassing
prime coastal land and native limestone forest, in the northern part of
the Tumon Bay Marine Preserve. The local resource agencies, already
struggling with the additional workload associated with the military
build-up must also assess the impacts from these ancillary developments
in the private sector.
In addition to the direct impacts from ancillary developments,
there will be a need to import a great deal of labor to supplement
Guam's existing construction industry. An estimated 12,000-15,000
construction workers will be needed and, with an estimated 85-90%
coming in from off-island, they will have an impact on our resources as
well. Not only in terms of an additional burden on our water and sewage
systems, but also in terms of fishing and gleaning on our reefs in our
coastal waters to supplement their diet. There will be a need for
increased enforcement of and education about Guam's marine preserves
and other fishing regulations as these workers are often unfamiliar
with local laws.
The Department of Defense should work with local resource agencies
to develop a program to educate all military personnel, their
dependents, and contract workers about the value of Guam's natural
resources and the laws protecting them. Financial support to improve
infrastructure and increase the operational capacity of enforcement for
conservation laws should be part of the annual funding required under
the Department of Defense's Sikes Act agreement with the Government of
Guam.
Green Infrastructure
Guam is an island with limited natural resources, and we therefore
encourage the use of green infrastructure and sustainable building
practices in the design of all new military construction. The military
expansion will require a number of large-scale infrastructural
developments to house personnel and their dependents and support
operations. It is important that these developments are designed and
built for maximum energy and water efficiency, including the use of
green belts and green space planted with native species, renewable
construction materials, water catchments, and alternative energy
sources, such as solar panels. The overall benefits of this strategy
will far exceed the costs of including these modifications as they will
decrease operating costs and minimize the military's dependence on off-
island supplies of fuel for power. It will also minimize the military's
ecological footprint on this small island. Including this now, in the
design stage, will be more cost-effective than having to retrofit
structures in the future and will result in cost savings and a
reduction over time in the dependency on non-renewable resources. We
encourage the Department of Defense to follow guidelines in the
Leadership in Energy and Environmental Design (LEED) Green Building
Rating System for New Construction & Major Renovations (http://
www.usgbc.org/Docs/LEEDdocs/LEED_RS_v2-1.pdf).
Sustainable Drinking Water
The Northern Guam aquifer, designated a ``principle source
aquifer'' in 1978 by the U.S. Environmental Protection Agency, is the
primary drinking water source for the island, servicing 80% of the
population. The aquifer has been formed from recharge from rainfall in
northern Guam percolating through surface soils to the underlying
cavernous limestone where it accumulates in a lens which ``floats'' on
and displaces the denser sea water. Although efforts have been made to
determine the recharge rates and water quality of segments of the
aquifer, funding is needed to conduct a comprehensive baseline study
for the whole aquifer.
The Department of Defense owns a substantial amount of land in
northern Guam and thus plays a critical role in protecting Guam's
northern aquifer. The Department of Defense should strive to maintain
existing forested areas on their land and restore denuded areas with
native forest. This will help to enhance recharge rates and maintain
water quality.
Southern Guam is comprised of volcanic soils and contains several
watersheds. There are currently 2 main drinking water sources in
southern Guam: Fena Reservoir and the Ugum River. Both sources suffer
from heavy sediment loads and require significant watershed
restoration. The Department of Defense is currently conducting some
watershed restoration efforts in the watersheds feeding Fena Reservoir,
and the Government of Guam is currently implementing the Ugum Watershed
Restoration Strategy, but more funding is required to truly restore
native forests in both areas, ensuring a sustainable drinking water
supply for our growing island population.
Protection and Enhancement of Public Shoreline Access to the Ocean's
Resources
The people of Guam have a long history of dependence on and
sustainable use of coastal and marine resources. Thus the protection
and enhancement of public shoreline access to Guam's ocean resources is
a major concern for the community. One of the primary goals of the Guam
Coastal Management Program, developed under the Coastal Zone Management
Act of 1972, is the protection and enhancement of public access to the
ocean's resources for recreation purposes. Public access to these
resources is also vital to tourism, the island's main industry. Dive
tours, fishing charters, and boat tours provide significant income to
the island's economy.
Unfortunately, an expansion in military installations and
associated security restrictions often result in the restriction of
access to the ocean's resources for the residents of Guam. For example,
in 2001, public shoreline access was restricted to the Glass Breakwater
and Luminao Reef. Prior to these restrictions, the area was frequented
by the public, including the military population, for activities such
as fishing, surfing, snorkeling, and diving. The closure of the area
has increased recreational pressures in other areas, resulting in
negative impacts to coral reef resources in protected areas such as
Piti Bomb Holes Marine Preserve.
We encourage the Department of Defense to work with Guam's local
agencies and the community to identify opportunities for collaboration
and joint planning to protect and enhance public shoreline access to
the ocean's resources under military jurisdiction.
The Micronesia Challenge
In January 2006, Governor Felix P. Camacho signed the Micronesia
Challenge (MC), a commitment by the Chief Executives of Guam, the
Commonwealth of the Northern Mariana Islands, the Federated States of
Micronesia, the Republic of the Marshall Islands, and the Republic of
Palau to effectively conserve at least 30% of the near-shore marine
resources and at least 20% of the terrestrial resources across
Micronesia by 2020.
The MC was conceived as a result of the deep commitment of these
five leaders to ensure a healthy future for their people, protect their
unique island cultures, and sustain the livelihoods of their island
communities, by sustaining the island biodiversity of Micronesia. The
MC also contributes to global and national targets set out in the
Millennium Development Goals, the Johannesburg Plan of Implementation
for the World Summit on Sustainable Development, the Mauritius Strategy
for Small Island Developing States, the U.S. Coral Reef Task Force
National Plan of Action and the relevant Programmes of Work of the
Convention on Biological Diversity.
TNC is a member of a Regional Support Team, along with Conservation
International (CI), the Secretariat of the Pacific Regional Environment
Programme (SPREP), U.S. National Oceanic and Atmospheric Administration
(NOAA), RARE (formerly RARE Center for Tropical Conservation), the
Micronesia Conservation Trust (MCT), the Locally Managed Marine Area
Network, the Community Conservation Network, the Pacific Islands Forum,
and the U.S. Department of the Interior. The team was formed to provide
strategic assistance and external resources required for effective
implementation of the MC.
The MC Steering Committee, made up of government focal points from
each jurisdiction, is providing regional coordination and is recruiting
a Regional Coordinator to advance MC activities across the region. Guam
and each of the other four jurisdictions are designing their own
strategies to implement the MC involving partnerships between
Government agencies, NGOs and local communities. For Guam, a multi-
agency team developed a draft strategy that will be presented to other
stakeholders for input, focused on strengthening and more effectively
managing existing marine and terrestrial conservation areas rather than
establishing new sites. As a significant landowner on Guam, the
Department of Defense will be a key partner in helping to achieve this,
especially the restoration of native forest in the areas of the Guam
National Wildlife Refuge Overlay under their jurisdiction.
TNC is also assisting local partners on Guam to develop a
sustainable finance plan to be completed in early 2008. The plan will
identify the funding needed to effectively manage Guam's natural
resources and meet the goals of the MC. The plan will also identify key
strategies, from internal and external sources, to secure the necessary
funding, including the building of an endowment.
This military build-up poses one of the biggest challenges to
Guam's vision to achieve healthy natural resources available for the
sustainable use of ours and future generations. But at the same time,
it can provide one of the biggest opportunities to attain long-term
sustainable funding of the work needed to achieve this same vision. As
stated above, we support the local government's proposal to explore the
possibility of using a portion of the amount of money required for
compensatory mitigation to help build Guam's and CNMI's pieces of the
MC endowment. Other innovative and creative solutions, some of which
may require specific federal enabling legislation, will be required to
turn this tremendous challenge into an equally tremendous long-term
opportunity for the people, culture, sustainable economy, and natural
resources of Guam and Micronesia as a whole.
Summary of Key Recommendations
There is a critical need for Congressional support for:
1. Early and adequate funding to compile comprehensive baseline
data and a fully integrated analysis, considering the direct and
indirect cumulative effects of this enormous build-up, required under
NEPA.
2. Department of Defense funding for planning for mitigation
actions and additional technical assistance prior to EIS completion and
project implementation. Due to extremely short deadlines and current
capacity limitations, the local and federal natural resource regulatory
agencies need help to properly assess alternatives and plan for
mitigation actions. Greater flexibility in DOD project funding and
implementation is needed, so they can incorporate public input on the
very short timelines required to complete this move by 2012.
3. Increased allocations for existing federal grant programs to
support operational capacity for local natural resource management
agencies and organizations, based on the capacity needs assessments for
the Government of Guam currently being developed. These allocations are
critical to allow natural resource agencies to meet the Department of
Defense's timelines in preparation for the projected population
increase, associated development, increased pressure on natural
resources and invasive species prevention and control to avoid
devastating economic, social and environmental impacts. This additional
funding should be used to implement projects on-the-ground in Guam,
including increased enforcement of conservation laws.
4. Joint DOD/Gov Guam programs to educate all active military,
their dependents, and contract workers on Guam's environmental laws and
the value of Guam's natural resources.
5. Department of Defense to follow guidelines in the Leadership in
Energy and Environmental Design (LEED) Green Building Rating System for
New Construction & Major Renovations (http://www.usgbc.org/Docs/
LEEDdocs/LEED_RS_v2-1.pdf).
6. Sustainable funding for natural resource management activities
in Guam and the CNMI. Using the sustainable finance plans for natural
resource management being developed in Guam and the CNMI, Congress, the
DOD and local governments need to work together to identify appropriate
long-term funding mechanism(s) for the expanded environmental programs
required by this military build-up. We strongly encourage Congress to
support Governor Camacho's proposal to allocate a percentage of all
Department of Defense appropriations related to the military build-up,
above and beyond funding for mitigation, to build a conservation
endowment. The interest derived from this endowment would be used for
the long-term, stable funding of. critical natural resource management
programs.
Again thank you for the opportunity to testify and I hope this
testimony will be useful to assist you with addressing some of the very
real challenges facing the community as we prepare for the military
build-up on Guam.
I would be pleased to answer any questions at this time.
______
Mrs. Christensen. The Chair now recognizes our final, last,
but not least, the Guam Contractors Association, represented by
Mr. John Robertson.
STATEMENT OF JOHN ROBERTSON, CHAIRMAN, GOVERNMENT, MILITARY AND
LABOR AFFAIRS COMMITTEE, GUAM CONTRACTORS ASSOCIATION
Mr. Robertson. Thank you. Maybe you save the best for last.
Honorable Chairwoman Donna Christensen, Honorable Madeleine
Bordallo, honored guests, ladies and gentleman, thank you for
inviting the Guam Contractors Association to address this
important forum. Our association represents almost 290 firms,
about 60 percent of whom are contractors.
My name is John Robertson. I'm a member of the Board of
Directors and I'm also the Chairman of the Committee on
Military, Government, and Labor Affairs.
Guam Contractors have considerable capability and capacity
and will form the backbone of whatever construction effort
occurs on Guam. A matter of concern to us is the high cost of
construction on Guam. With an area a factor of 2.64, our
construction cost is judged by the military to be the most
expensive on the planet, other than Greenland and a few
isolated spots in Alaska.
This high cost can be attributed to two factors: First,
logistics, and second, skill level of workforce. And it is
something we have been working with NAVAC (phonetic) to rain in
over the last number of years. This is what I wanted to discuss
with you today.
Now, we will forgo discussion of logistics so we can talk
about the workforce. Guam's workforce is adequate for normal
needs. It was mentioned earlier, the $400 million per year
volume; that number actually came from the Guam Contractors
Association to Captain Boone a couple of years ago. However,
demographics is catching up with us and young people are needed
to replace those set for retirement. Specialized skill sets
among much of our workforce is unfortunately below standard,
thus there's a lot of re-work.
As many residents of Guam and neighboring islands as
possible must be drawn into the expanding job market associated
with the military buildup. The GCA established the Trades
Academy last year for developing a local skilled workforce for
construction and related trades. We have conducted initial
meetings with the Presidents of the University of Guam, Dr.
Allan, and Guam Community College, Mrs. Okada, in our working
on a strategy to serve the needs of the community as a
coordinated and non-competitive effort. It was agreed between
us that all of our efforts are required to make this happen.
Neither one of us can do it alone.
It was also agreed that we should conduct a joint campaign
to try to draw people from the local island into our industry,
which to many of you is menial labor that they don't want to
get involved in. But actually, it is a career that the people
can be very proud of. Federal support is needed for action
during the compressed timeframe in getting these people up to
speed.
You will ask why we have formed the Academy, since there is
a community college on Guam doing the same thing, and I must
answer that important question. We have learned that ABC-
affiliated contractor associations across the U.S. are doing
this because community colleges are moving toward a more
academic track.
The same has happened on Guam, and that is a good thing in
many respects, except that we have not seen trainees entering
the construction field for a number of years. We are taking
people, some of which are high school dropouts, and by the way,
we unfortunately have a 50 percent dropout rate in high school
on this island. We are taking these people, with interest in
working with their hands, and providing them with a career
doing what they want to do. Many of these will later complete
their GED and rise to the top ranks of contract organizations
or become entrepreneurs.
Training will not produce sufficient numbers of workers for
the boom, but will provide and trained and experienced
workforce for steady state construction and maintenance
requirements that will follow.
We have verified that the skilled workforce and CONUS is in
short supply, and mainland contractors are using workers from
Mexico and Central America. We must turn once again to Asia for
the numbers of skilled workers we will need.
The GCA Trades Academy was organized with expert legal
assistance as a private sector, non-profit institution of
learning. It is duly certified for the purpose by local and
Federal authorities. It is under the very capable direction of
Mr. Bert Johnston, who has experience in industry, as well as
education. Training curricula is from the Contren Learning
Series, as developed by the well-funded National Center for
Education and Research. This series is used by construction
trades academies across the U.S. by both union and open-shop
contractors. Graduates receive a certificate from the NCCER, as
well as the U.S. Department of Labor.
The GCA training program has been accredited by the U.S.
Department of Labor for more than 20 years. It includes an
apprenticeship component with local contractors. We currently
have 50 students in the program in five different trades.
Tuition is being paid by employers or by the trainees
themselves. This amounts to from $2,500 to $3,000 per year, per
student. Some have become employed as a result of joining the
Academy.
So far, there's been no government support. We are in
discussions with the Guam Department of labor, however, and
they expect to secure WIA grant funding to cover tuition for
students that need such support. We understand that the Office
for Economic Adjustment has funding for workforce training, and
we are expecting that some of that funding will be directed
toward the students in our Trades Academy. That is the only way
that we can grow from 50 to 200 students over the next 12
months and to 500 the year after.
We expect some subjects will be taught at the Community
College and some at the Trades Academy in a coordinated manner.
Management, supervisory, pre-engineering, and administrative
courses will be taught at UOG or GCC as appropriate.
We need facilities for the Academy. So far, we are using
our conference room and some rented facilities, but we do need
to get our own facility, which we have plans for, and that's
covered in the written testimonies I will not repeat.
Guam is under the same Visa quota system as the rest of the
U.S. A Visa waiver or a special class of Visa is needed to
remove this major obstacle. It should be applied to military as
well as GovGuam and private sector projects, not just
government. We suggest that control on this should be under the
Department of Labor, local Department of Labor. And it should,
importantly, be open to H1 professionals, as well as H2 skilled
workers.
I've run out of my time, so I will stop in the middle of my
presentation. Thank you very much for allowing us to present.
[The prepared statement of Mr. Robertson follows:]
Statement of John M Robertson, PE, Chairman, Government, Military, and
Labor Affairs Committee, Guam Contractors Association
During a previous construction boom on Guam in the 1990's when a
number of Tumon Bay hotels and Leo Palace were built, major Japanese
contractors managed the work using the local Guam contractor community.
The work was actually executed with local contractor provided work
force that were mostly brought to Guam for the purpose from Asia. The
peak level was 10,000--12,000 workers which would appear to be about
40-50% of the Marine Corps relocation requirement. One of the major
differences is that the peak of the construction boom in the early
1990's lasted 1 to 2 years. The Marine Corps relocation on the other
hand will cover a span of approximately five years. This will prove
beneficial as the return on investment can be spread over a longer
timeframe.
Contractors on Guam have considerable capability and will form the
backbone of the construction effort. The local construction community
will provide the majority of labor, equipment, barracks and quarries
needed for the program. Improved information flow will allow the local
contracting community to plan and make capital investments before 2010
and before contracts are signed. The local construction industry has
the labor, equipment, supply lines, and maturity to take the lead in
executing the work.
There are two issues that require much thought, planning and
legislation at the local and national level. They are discussed herein
below.
1. Materials Procurement and Logistics, including shipping and
ground transportation. Ideas follow.
a. Buy American Act. Guam is more a part of Asia than CONUS,
geographically. Importation of quality materials from Asia should be
permissible as a means of reducing cost to the government. Please note
that U.S. projects performed abroad normally permit use of materials
manufactured within the host country or the United States. While Guam
is part of the United States, the same principal does apply in some
sense. Note further that most U.S. products now contain many components
from abroad. Prequalification of acceptable Asian vendors should be
initiated sooner rather than later.
b. U.S. Flag Shipping. Again, because of the location of Guam in
the western Pacific, provisions of the Jones Act and rules of the
Maritime Administration should be waived to allow direct shipments from
Asia to Guam. U.S. Flag shippers could modify routes for some of their
vessels to participate in that business. Currently, U.S. Flag vessels
sail from U.S. west coast or Hawaii to Guam then to Asian ports then
directly back to the U.S. west coast.
c. Guam Seaport. The Port Authority of Guam has for more than five
years been attempting to outsource management of terminal operations
and secure new container cranes but have not been able to do so because
of political considerations. Furthermore, Foxtrot Wharf should be
extended and the channel dredged. The federal government may need to
take the lead in making these important things happen. Alternatively,
Navy wharves may have to be made available and equipped for the
purpose.
d. Local Vendors. Local Guam vendors should be encouraged to
stock, fabricate and supply common materials to contractors. An
exception would be the most specialized of items. This will facilitate
savings in cost and time and allow for changes that invariably occur.
It will also cause a strong vendor base to emerge that now only
partially exists on Guam. The federal government may need to provide
leadership in encouraging local businesses and especially small
businesses to gear up to serve as a major supply chain and thereby
serve the community as well as the military buildup.
e. Road Improvements. Roadways on Guam are currently over-used and
are in generally poor condition. Necessary improvements should be made
by mid-2009. Route 1 from Seaport and Piti to Hagatna should be widened
to 6-lanes and otherwise brought up to standard. Route 8 and Route 16
should be widened to 6-lanes for their entire lengths and brought up to
standard, especially the intersection of Route 8 with Route 1. Harmon
Loop Road should be extended from Route 16 to Route 1 as 6-lane and
brought up to standard. A better connection from Route 16 to Route 3
should be established, by-passing the vicinity of Micronesia Mall for
access to the vicinity of NCTS.
2. Workforce Availability, including training, logistics and
management. Ideas follow.
a. An adequate workforce is not available on Guam. Since skilled
tradespersons are in short supply in CONUS, the main workforce for Guam
will have to be recruited from Asia. Although there may be some
pressure to utilize skilled workers from Japan and especially Okinawa,
this may not be the most cost effective solution for the skilled
workforce.
b. As many persons as possible from Guam and neighboring islands
must be brought into the workforce. The University of Guam and Guam
Community College are training young people that will occupy important
positions in construction as well as other segments of the expanding
economy.
c. The Guam Contractors Association has established the GCA Trades
Academy that is now in operation with about 45 students. This
initiative is designed specifically for developing a skilled
construction workforce. It is based on curricula of the Contren
Learning Series as published by NCCER--National Center for Education
and Research. It is used extensively in CONUS by open-shop and union
trades training centers. The Guam Contractors Association training
program is and has for more than 20 years been accredited by the U.S.
Department of Labor. It includes an apprenticeship component with local
contractors. Please see the Attachment that provides additional
information on this important subject. A few key items relative to the
GCA Trades Academy
i. The Board of Trustees is intent on proceeding in close
cooperation with the University of Guam, Guam Community
College and the Guam Public School System in carrying out
common objectives.
ii. A funding stream for students in the program is not
yet mature. Contractors and some students have been
covering the tuition expense and rapid growth is dependent
on adequate financial support. Grant applications through
the Guam Department of Labor, and others is in process and
federal funding is expected to commence flowing into the
program in the months ahead.
iii. Funding is needed to fit-out a training facility that
will cost about $525,000. Some member firms and local
business establishments have already contributed into this
fund.
d. A Visa waiver or other mechanism needs to be established to
ensure an adequate supply of H2B workers for Guam. Guam is currently a
participant in the same quota pool as the rest of the United States.
The quota is normally used up within days of approval and this denies
Guam contractors adequate opportunity to meet its needs. Please note
that Guam is not contiguous with other states of the United States and
cannot lure skilled workers from across state lines. The GCA and
Chamber of Commerce have been working this issue together for the past
2 years. Some push from the federal government is needed. As one
option, we recommended the establishment of an H2G visa or similar
program specifically for Guam and for the duration of the military
buildup. Some further points:
i. It should apply to military as well as non-military
projects since military construction will be the driving
force for private sector projects that are also important
to the island and the military.
ii. Visa issuance is under the U.S. Department of
Immigration. If the waiver can be lifted or special visa
program implemented, we suggest control on applications be
established as a responsibility of the Guam Department of
Labor with assistance and support from the U.S. Department
of Labor. Authority has been delegated to the governor who
has in turn assigned it to the DOL.
iii. In order to facilitate control and without
overburdening the DOL, regulations might require the
endorsement of prime contractors for applications of their
subcontractors, consultants and other vendors.
iv. The special class of visa, as recommended, should be
open for professional as well as skilled trades. Engineers,
architects, administrators and supervisors will be needed
by construction contractors. The expanding economy will
require use of foreign doctors, nurses, accountants and
many others professionals and the existing restrictions
should be lifted for them as well..
v. A sunset provision may be necessary for approval of a
waiver or other special visa category. This is important
for the local economy as well in that local workers should
always be favored over foreign. The sunset provision might
be tied to a certain overall level of construction volume--
such as less than $250 million per annum of new
construction starts over a two year period.
e. Potential foreign workers need to be screened with background
checks in their home country to ensure that undesirables do not slip
into Guam as part of the workforce. Assistance from the federal
government will be needed. Contractors will be responsible for skill
assessments.
f. Few contractors on Guam now have worker accommodation
conforming to current day standards. What is available is not adequate
to meet anticipated demand. Camp type housing should be set up and
operated by specialist contractors for the duration of major
construction to make up for the difference. This approach would be less
costly in overall sense as opposed to each construction contractor
providing his own. Worker accommodation should be located separate from
local residential communities.
g. Worker accommodation should include a clinic, recreational and
other facilities to avoid overtaxing existing similar facilities on
Guam.
h. There have been compliance difficulties in the past on Guam
using non-immigrant alien labor. Guam's principal contractors want
there to be a level playing field with all participants playing by the
rules. Guam DOL will require support from the federal government on
compliance monitoring and enforcement.
i. Management, engineering, administrative and supervisory
personnel brought to Guam from the U.S. and elsewhere will have
requirements beyond those of the workers. This is especially true since
they will in many cases be engaged on family accompanied status. They
will require higher level accommodation, medical facilities, schools
and other services not now available in adequate supply. Some of these
facilities could be made available by the private sector through
encouragement of some kind. Because of timing, the federal government
may need to incur some upfront cost with the idea of selling the
facilities when major military construction is done. Some local private
schools might be persuaded to expand in the near term to accommodate
the temporary surge.
j. Guam Memorial Hospital is the only hospital that serves the
civilian community on Guam. It is currently not JHACO certified and is
in need of some upgrades. This matter needs urgent attention in order
to not deter senior managers and engineers from living and working on
Guam. On the other hand, a field hospital could be set up and utilized
for the duration of the elevated level of construction.
k. Unskilled workers are available on Guam and none should be
brought in from abroad. There is a sizable migrant community on Guam
from FSM and with some training can be highly productive in unskilled
positions. Some will over time move into the ranks of the skilled
workforce. This also is a focus of the GCA Trades Academy. Utilization
of this segment of the resident population is important to the local
economy and the tax base.
l. Flights to and from Guam are becoming increasingly crowded.
Another carrier could perhaps be persuaded to extend service from CONUS
with direct flights to Guam and thus create a competitive environment
that does not now exist.
We trust the foregoing is helpful.
Guam Contractors are following closely all news concerning the
military buildup on Guam. We are hopeful that some clarity will emerge
during the coming months on what can be expected. We, the board of
directors of the Guam Contractors Association, offer our services and
expertise to the Sub-committee on Insular Affairs in planning for this
major construction boom that will change forever the way Guam does
business and the way it is perceived by the world.
Sincerely,
Guam Contractors Association
,-- ,
Jerold Johnson President, Board of Directors
James Martinez Executive Director
John Robertson Chair, Government, Military and
Labor Affairs Committee
Attachment: GCA Trades Academy--A Brief Overview
______
GCA TRADES ACADEMY
A BRIEF OVERVIEW
(August 2007)
The GCA Trades Academy, in affiliation with the Guam Contractors
Association, is the principal provider of skilled trades training in
construction and related fields on Guam. These two organizations are
supported through further affiliation with a major contractors
association and an educational institution on the mainland United
States. The link between these affiliations is described below.
Guam Contractors Association (GCA)
The Guam Contractors Association was founded in 1959 as a non-
profit association with a membership comprised of approximately 250
construction industry and associate member organizations. GCA is the
Guam Chapter of the Associated Builders and Contractors (ABC).
Associated Builders and Contractors (ABC)
Associated Builders and Contractors (ABC) is a national association
representing more than 24,000 merit shop construction and construction-
related firms in 78 chapters across the United States. ABC is the
construction industry's voice with the legislative, executive and
judicial branches of the federal government and with state and local
governments, as well as with the news media. ABC was founded in 1950
and became the fastest-growing association in the United States. Today,
ABC is recognized as one of the leading organizations representing
America's business community and the U.S. construction industry. ABC's
activities include government representation, legal advocacy,
education, workforce development, communications, technology,
recognition through national and chapter awards programs, employee
benefits, information on best practices and business development
through an online contractor search directory.
GCA Trades Academy (GCATA)
The Guam Contractors Association board of directors sponsored the
incorporation of the GCA Trades Academy in September 2006 as a separate
stand-alone non-profit organization. The GCA Trades Academy was
established to provide a nationally recognized industry skills training
center, support U.S. Department of Labor recognized apprenticeship
training programs, and to support the skilled labor needs of
construction contractors and related industries doing business on Guam.
The GCA Trades Academy's programs include:
Craft Skills Training
The Trades Academy maintains skills training programs using the
latest Contren Learning Series developed by the National Center for
Construction Education and Research (NCCER) and other industry-
recognized curricula to prepare interested participants for employment
in the construction and construction-associated industries. This
program was launched in October 2006.
Skills Assessment & Certification
The Trades Academy will establish a skills assessment and
certification program. The program is designed to assess and certify
the skill level of workers using assessment criteria developed by the
National Center for Construction Education and Research (NCCER). The
Trades Academy already has staff trained and certified to administer
the program. This program is expected to be launched October 2007.
Pre-Apprenticeship Training
The Trades Academy maintains a craft-training program that support
pre-apprenticeship programs using the latest Contren Learning Series
curriculum to prepare interested participants for employment in the
construction and construction-associated industries.
Apprenticeship Training
The Trades Academy maintains a craft-training program that provides
related classroom instruction for the Guam Contractors Association,
Hawaiian Rock Products, and Dick Pacific apprenticeship standards.
These apprenticeship programs are registered by the U.S. Department of
Labor as authorized under the National Apprenticeship Act of 1937
(Fitzgerald Act), as amended PL 75-308, 50 Stat. 664, 57 Stat. 518, 29
U.S.C. 50, 50a, 50b.
Advanced License Training
The Trades Academy will establish a training program to prepare
personnel qualified for advanced licenses to successfully pass their
respective licensure examinations. This program is expected to be
launched in October 2008.
National Center for Construction and Education Research (NCCER)
A decade ago, representatives from the nation's leading
contractors, manufacturers, and construction trade associations came
together to establish quality standards for industry certification and
training.
Organizations competing against one another in business forged
partnerships to embrace these common goals--to provide quality training
for craft professionals; to keep the workforce safe; to provide for
career advancement through management training; and to improve upon the
image of the construction industry as a career choice for young people.
These goals resulted in the establishment of the not-for-profit
educational organization, the National Center for Construction
Education and Research (NCCER), affiliated with the University of
Florida's M.E. Rinker School of Building Construction, located in
Gainesville, Florida.
With the support of a growing list of industry partners and its
publisher, Prentice Hall, NCCER has evolved its training offerings from
fifteen to over fifty different curricula, and has developed skills
assessment tests for over 45 craft areas.
Accreditation
As the accrediting body for the industry, NCCER has established the
benchmark for quality training. Working in partnership with industry
and academia, NCCER has developed a system for program accreditation
similar to those found in institutions of higher learning.
NCCER's accreditation process assures that students receive quality
training based upon uniform standards and criteria. These standards are
outlined in NCCER's Accreditation Guidelines and must be adhered to by
NCCER Accredited Sponsors, such as the Guam Contractors Association.
The GCA Trades Academy is an NCCER-accredited training unit, one of
more than 500 training facilities in 50 states and eight countries.
Instructor Certification
As part of its accreditation process, NCCER has developed the
Instructor Certification Training Program (ITCP). This program ensures
the uniform and consistent delivery of training. Through this process,
NCCER certifies the Master Trainer. In turn, the Master Trainer
certifies the Craft Instructor. The Guam Contractors Association
maintains a Master Trainer on staff and there are now more than 60
NCCER-certified Craft Instructors on Guam.
National Registry
In an effort to provide students and craft professionals with
industry-recognized credentials and assure national portability of
skills, NCCER maintains a national registry with widely recognized
credentialing and certification process. This National Registry
provides transcripts, certificates, and wallet cards to students who
successfully complete the Contren Learning Series through an
Accredited Sponsor. The valuable industry credentials benefit students
as they seek employment and build their careers.
Standardized Curricula
In partnership with Prentice Hall, NCCER develops and publishes the
Contren Learning Series. Built upon industry standards, this
standardized, competency-based curriculum is taught nationwide by
contractors, associations, construction users, and secondary and post-
secondary schools. At least 24 State Departments of Education recognize
the curricula. Contren curricula are distinguished by unique training
features:
Competency-based and contain measurable objectives
Developed by industry experts and educators
Modular in format and can be used for task training
Meets or exceeds Apprenticeship, Training, Employer, and
Labor Services (ATELS) requirements
Portable, industry recognized credentials
VALUES--MISSION--VISION
Values
The GCA Trades Academy values:
Corporate responsibility
Equality
Personal and vocational growth
Excellence within our students, staff, and curriculum
Student assistance via career and financial counseling.
Mission
Our mission is to share with aspiring tradespersons the skills and
knowledge required to advance in a variety of fields. We will offer
financial aid and counseling assistance to those interested, and will
guarantee equal opportunity employment to those who successfully
complete our program.
Vision
To be a self-sustaining, profitable, world-class regional training
center, with a state of art facility handling at least 400-500 students
per annum by the year 2012.
GOVERNANCE OF THE GCA TRADES ACADEMY
The GCA Trades Academy is governed by a Board of Trustees currently
made up of:
John M. Robertson--Chairperson, Board of Trustees. Mr Robertson is
a licensed professional engineer in Texas with 45 years management
experience in construction and maintenance. He is currently president
and RME of AmOrient Contracting Inc.
William D. Beery--Vice-Chairperson, Board of Trustees. Mr Beery is
a professional engineer in Hawaii with 30 years management experience
in construction and maintenance. He is currently general manager and
RME for Watts Constructors.
Rita A. Edwards--Secretary, Board of Trustees. Ms. Edwards is the
Assistant Director of Professional and International Programs (PAIP) at
the University of Guam, which oversees the Professional Development &
Lifelong Learning Center, Enterprise Development, and the English
Language Institute.
Monty A. McDowell--Treasurer, Board of Trustees. Mr McDowell holds
a masters degree in electrical engineering. He served as an officer in
the U.S. Navy for 22 years and founded Advance Management in 1990 where
he remains chief executive officer.
Graeme M. Ridley--Trustee, Board of Trustees. Mr Ridley has 25
years experience in mechanical trades with advancement through
education and examination equivalent to a bachelor's degree in
mechanical engineering. He is currently manager of the mechanical
division of Smithbridge Guam Inc.
Herbert J. Johnston, Jr.--Education Director. Mr. Johnston has a
bachelor's degree in education and a master's degree in public
administration, both from the University of Guam. He is currently
completing requirements for a doctoral degree in business
administration. Mr. Johnston is a faculty practitioner with the
University of Phoenix, College of Graduate Business & Management. His
work experience outside of education includes fifteen years with Guam's
only public water and wastewater system.
GOALS AND STRATEGIC PLAN
Some Goals of the Academy
To foster a safe, productive and sustainable workforce of
craft professionals on Guam through effective training and
apprenticeship
To build careers of a lifetime for young men and women of
Micronesia that aspire to excel in a trade
To support the construction and maintenance industry in
the region during an approaching period of significant growth
To be a vital and integral part of the public and private
educational system on Guam for young people and adults
To be the premier institution of learning on Guam for
those wishing to pursue an upward career path in construction and
related activity
Elements of the Strategic Plan
Build on the long held accreditation from the U.S.
Department of Labor for apprenticeship and training to improve the
quality of skills in the region
Build on the long term relationship with the Guam
Department of Labor to improve the quality of life for citizens of the
region
Take full advantage of the accreditation and standardized
curricula from the National Center for Construction Education and
Research (NCCER) to offer current state of the technology training
As a private non-profit institution, offer quality craft
training and apprenticeship at affordable rates while being self
sustaining for the near term and into the future
Maintain the highest standard of instruction for up to
500 beginning students per annum through utilization only of NCCER
certified craft professionals in the classroom and workshop training
environment
Cooperate with contractors on Guam for fulfilling
apprenticeship requirements on the path to journeyman status and beyond
Cooperate with the University of Guam and Guam Community
College in career advancement for persons at all levels of potentiality
Establish the academy as a permanent institution and
provide highest quality training for trades beyond the period of heavy
workforce demand in the region
FUNDING FOR THE GCA TRADES ACADEMY
Startup Funding
Initial startup funding for the Trades Academy came from the Guam
Contractors Association and from voluntary loans from supporting
members. The Guam Contractors Association assumed most costs incurred
prior to startup, including especially the Education Directors salary
and legal fees for establishment of GCA Trades Academy as a non-profit
institution of learning. After startup, the Guam Contractors
Association continues to assume the personnel costs of the Education
Director, however, these costs are invoiced to the Trades Academy with
no specific pay-back terms. Costs associated with the initial order of
student texts and instructional material were approved and paid from
GCA funds, which are to be reimbursed by from the proceeds of the sale
of textbooks.
Tuition Pricing Strategy
The pricing strategy is based on the sale of individual training
modules. Text books and workbooks are sold separately at NCCER retail
rates. Additionally, lab fee are assessed on those modules with
extensive shop work to cover the cost of material, supplies, and
equipment use.
Tuition fees are set at the minimal level to recover all direct and
indirect expense incurred for instruction. Instructors are paid a flat
rate for each module and this is a major cost included in tuition fee.
Other costs include classroom rental, insurance premiums, electricity
usage, record keeping and a proportionate share of business overhead.
For the average student, tuition fees will not exceed $2,500 per year.
Target Market
Employer-sponsored students. These students are workers in the
existing workforce needing to be upgraded through training and
certification. The employer assumes some, possibly all, costs for
tuition and supplies.
Indentured Apprentices. These students are employed under an
apprenticeship program and are taking classes to fulfill their related
course instruction requirements. The employer assumes all of the costs
of tuition and supplies.
Self-sponsored students. These students are individuals that can
afford to pay tuition and supplies. They anticipate being picked up for
employment by a contractor after getting through the basics and
possibly thereby becoming employer-sponsored.
Note that employers can expect to receive a credit against Gross
Receipts Tax of 50% of authorized apprenticeship training expense
actually incurred, for those apprentices that complete annual
requirements through an accredited apprenticeship training provider.
Government-sponsored students. These students are individuals that
meet the criteria for government programs that provide educational
financial assistance, such as through AHRD, Veterans Administration,
and Department of Defense. In addition, a portion of amounts paid by
contractors into the Manpower Development Fund (MDF) should be made
available for apprenticeship training provided by the GCA Trades
Academy.
Privately-sponsored students. These students are individuals who
have applied for and receive private funding assistance or
scholarships, such as through the Guam Chamber of Commerce or the
Center for Micronesian Empowerment.
Founders Guild
The GCA Trades Academy Board of Trustees has agreed to the
establishment of the ``Founders Guild'' for the purpose of securing
funds for strengthening the financial base of the academy and in
particular to finance the build-out of a training facility. The
Founders Guild recognizes those that have and will provide voluntary
contributions or soft loans for this purpose.
The GCA Trades Academy recognizes that there are many in the
community that have openly expressed support for the mission, vision,
and achievements to date of the academy. The GCA Trades Academy is
recognized as tax-exempt by both the local government of Guam and U.S.
Internal Revenue Service.
At the onset of establishing the GCA Trades Academy, five members
of the Guam Contractors Association pledged $10,000 each for startup
capital: AmOrient Contracting, Perez Bros, and Watts Constructors,
Hawaiian Rock Product and Maeda Pacific. In June 2007 the First
Hawaiian Bank Foundation provided a grant of $10,000. Taniguchi Ruth
Makio Architects prepared the preliminary plan for the academy as an
in-kind contribution.
Training Facility In Tiyan
The proposed GCA Trades Academy training facility in Tiyan is to be
developed by renovating and fitting-out the former military operated
``Jet Lanes'' bowling facility for the new purpose.
The facility is now in private hands, having been returned to the
family of the original land owners. The owner is willing to lease the
facility on favorable terms to the academy for 20 years with the
possibility of extending the term as will be determined at a future
date. The lease agreement is currently being drafted.
The facility has a net floor area of just over 11,000 square feet.
The undeveloped area at back side is owned by the same land owner and
can be used for training of heavy equipment operators. Roads in the
vicinity are lightly traveled and are therefore suitable for initial
truck driver training.
Planning calls for co-locating the Guam Contractors Association
administrative offices at this site upon completion of renovation. The
Center for Micronesian Empowerment will also occupy space in the
facility and they will provide students to be trained in construction
and related trades. All occupants will share proportionately in the
costs of leasing and operating the facility.
[GRAPHIC] [TIFF OMITTED] T7527.001
.eps__
Mrs. Christensen. Thank you, but your full testimony is in
the record and I know the staff has read it, and I've read the
first part, not the appendix, so I have a little bit more to go
on. But we've read it.
Thank you for your testimony, and I'll now recognize myself
to begin the questioning.
I'll start with you, Senator Cristobal. Your testimony is
very clear and very moving. Polls, as the one Mr. Ruder quoted,
and there are others, I believe, have shown 75 percent or more
of the people really support the military buildup. To what do
you attribute the support? Do you think that there's any place
at which the two minds can meet? And, would your possible
alternate process, the alternate process of that you mention in
your testimony, would that be an avenue for it?
Ms. Cristobal. I had mentioned, Madam Chair, that we would
like to see a process, a separate process, be engaged by
Congress to basically ask the Chamorro people to make this
informed decision as to whether we want the military buildup,
and that's in context with our status as an unincorporated
territory and as a non-self-governing territory.
Does that answer your question?
I'm not sure if this survey was a scientific survey or not,
Madam Chair.
Mrs. Christensen. Yeah.
Well, I think it was within 4 points, plus or minus 4
points accuracy.
Well, let's just say that generally it is felt, even
forgetting the poll, but the majority of people of Guam want
the military buildup, maybe with conditions, but they want the
military buildup. Your position is opposing the military
buildup. Is there any place that you see that those two points
can come together and meet and find some kind of consensus?
Ms. Cristobal. Let me just qualify. I think we need to take
note of the fact that surveys like that would definitely come
up with a favorable result.
Basically, because we now comprise less than--we are about
40 percent of the population, and as you continue to bring in
U.S. citizens and other people that vote or that have these--
that are part of the survey, you will continue to get favorable
results. We have been militarized for so long. We lived with a
very dependent mentality. We realize that. But we need, like I
said, we need to have an informed decision before we vote on
this. And that's why I indicated that it must be an informed
decision.
We need to be educated about our alternatives. We know that
international conventions say that we are allowed to determine
a political status, the three options on U.N. Resolution 1541
that basically says we have the option of determining whether
we want to be independent, freely associated, or----
Mrs. Christensen. Sure.
Ms. Cristobal --in the words of U.S. citizens, whether we
want statehood or full integration into mother country.
So, these--Guam does not have a Chamorro history either. We
don't have--we are totally a colonized people, and surveys like
that would produce those kinds of results. It is just not
surprising at all.
Mrs. Christensen. OK. We would probably try--thank you for
your answer. We will probably try to come back for some follow-
up questions.
Mr. San Nicolas, two-part question in a way. Are you
supplying fresh produce to the military now? And, how major an
increase in production, change in methods, new form--what is
the potential to add manpower in this area? Are there programs
in the schools that promote agriculture as an industry and as a
profession, either in high schools or in the community college
or University of Guam?
Mr. San Nicolas. Yes. Chairwoman Christensen, with regard
to the first part on your question on the market with the
military.
Right now, the communication between the local farmers and
the military is very minimal, and I do not know if any
communication or any dialogue is going on. So, that's why I am
recommending that the military partner with the Guam Soil &
Water Conservation District Board, because we represent the
farmers from the north.
The Northern Shore and Water Conservation District Board
represents the farmers of the north; and the Southern Soil &
Water Conservation District Board from the south represents the
farmers from the south. And, with that, I think there's a
potential benefit here with the farmers of Guam and the
military to provide fresh, local produce, and fish, and shrimp,
aquacultural products.
And along with that, the food security issue. I think it is
more incumbent on the military to ensure that we grow and take
immediate action regarding a food security. We read it in the
newspaper, all those imports are coming in from foreign lands
and are causing a lot of our problems. So, I believe it is in
the best interest of the military and the farmers of Guam to
partner in this area, and see how we can help each other
increase the potential and ability for the farmers of Guam to
use that military market.
With the local community, as far as the market, we have
some legislation in place right now that requires our
Government of Guam agencies to buy local agricultural products.
However, there's a snag there, because recently there is
another law that came in place that the local farmers have to
meet USDA standards. And a lot of the local farmers never went
for any kind of workshop or dissemination on that kind of
legislation.
And these are the things, I believe, that we need to visit
with our good senators here in Guam, and see if we can maybe in
the future, before legislation is passed like that requiring
the farmers of Guam to meet USDA standards before we can market
to our school cafeteria, I think they should have checked that
with the local farmers and come up with some proposal and give
us some timeframe, where we can be educated on what is the USDA
standard. Because after all, yes, we do want food security for
our children and for our teachers, and fresh produce, but we
need to work together on this.
With the education part, currently we are, with the Guam
Soil and Water Conservation District Boards, along with the
environmental education, we started what was called the Adopt a
Watershed Project to entice teaching environmental education
and farming issues through the Inarajan Elementary School as
pilot projects and in Talofofo and Merizo. So, of course, the
University of Guam here has education in that area for majors,
I believe, and minors in the agricultural majors.
Thank you for the question, Congresswoman Christensen.
Mrs. Christensen. And if I remember General Bice's response
to a question about buying local produce, I think from the
Congresswoman, he was very open, so this seems like there's a
possibility for that to become a reality.
I'll recognize Ms. Bordallo for her questions now.
Ms. Bordallo. Thank you very much, Madam Chair.
Senator Cristobal, I don't have prepared questions for you,
but you mentioned the status, and I want you to know that this
would be a local endeavor, and once the people of Guam have
made the decisions, that we will take that message back to the
U.S. Congress.
Guam spent nearly 10 years in this effort and a good $10
million. I sat on the Commission as well. So, I'm very
familiar, and I want you to know that whatever the people of
Guam decide, I will carry that to Washington, D.C.
But I want to thank you for your very distinguished career,
and as a past member of the Commission of Self Determination.
I do have a question for Mr. San Nicolas. We were just
talking about this--the USDA standards, is that local law?
Mr. San Nicolas. I believe it is a local law, a year or so
ago. Somebody had the bright idea to incorporate that and made
that a regulation for the farmers of Guam.
Ms. Bordallo. Well, then I guess your efforts have to be
with the local Legislature.
Mr. San Nicolas. Yes. We had good senators that were
working for the farmers to ensure that we capitalize in the
market, you know, with the Government of Guam agency, and then
somebody came up with that bright idea to put that burden on
the farmers.
I'm not against quality, meeting all the requirements, but
I believe communication should be given to the farmers and
maybe some kind of orientation before those kind of laws are
put in place. And I also believed that public hearings maybe
should have been afforded, especially to the farmers.
Ms. Bordallo. Mr. San Nicolas, I've always been very
supportive of the farmers and agriculture. My late husband was
a very strong leader in that area. The Green Revolution, we all
remember that.
You mentioned the strong desire of our farmers to gain
access to expanded military markets on Guam, and I think I got
from your testimony that it is not at its peak definitely now.
And I concur with the desire to have locally grown fruits and
vegetables sold in our commissaries and supplied to the ships
that pull into port, and that come to our region for training
exercises.
Can you give us a sense of what the local production
capacity is at this time? Do we have the capacity to provide
the fruits and the vegetables to the commissaries and the
ships, and so forth?
Mr. San Nicolas. Congresswoman, Madam Bordallo, I'm glad
for that question.
Yes, we definitely have that capacity. What we need is very
similar to the Chamber of Commerce and other members that have
come before you. We need to partner with the military, we need
to partner with our local government, we need to partner with
the hotel industry, so that we can motivate the farmers of Guam
to maximize their productions.
Right now, the major problem, or one of the major problems,
is marketing our product. So, I believe that starting with the
military, if we can partner and have some kind of dialogue,
similar to the support that the local people and the elected
officials are supporting the Chamber of Commerce or the tourism
industry in helping any way to enhance the--like for example,
the production and the imports that we are faced with, and the
pests that are continually coming, and we call those invasive
species; and those are the things that our local government and
the Federal Government can assist us in combating the negative
effects and the cost for that.
But, yes, we definitely have the capacity if we are given
the support and assistance that are needed with our endeavors.
Ms. Bordallo. Mr. San Nicolas, you mentioned marketing, I
agree with that. I know that our crops do not include all types
of fruits and vegetables. We are heavy on the melon and--some
of the others, but would you say that, right at this time, we
do have the capacity to provide the produce to these areas?
I mean, I'm just thinking. I mean, would you----
Mr. San Nicolas. Yes.
Ms. Bordallo. You would say yes to that?
Mr. San Nicolas. Yes.
Just for example, for the aqua-culture farm that my family
operates. If the military or the hotel industry would buy from
us, we can meet their demands, especially in the local
industry, and the same with the local farmers.
The main reason the farmers are shy from maximizing their
production, again, is because the market is very limited. And
also the imports, the competition from the imports----
Ms. Bordallo. And the USDA?
Mr. San Nicolas. Yes, definitely.
So, those are the challenges that we need collaboration
with our Federal and local officials to help improve those
issues that we face.
But we got good farmers out there that can really maximize
their production, but right now we try to just meet whatever
market demand that is there, given the situation that we are
facing with the challenges of the imports and the pest
problems, those invasive species.
Melon can grow beautifully in Guam. Papaya can grow
beautifully in Guam, and go year round. But we need to have
support, such as the pilot projects that are happening
throughout the island. We need those high breed papayas that
are more resistant to the invasive species. But we do have the
capacity to do that. We need the support from our, for example,
our local Department of Agriculture. Now, we are partnering
with the University of Guam and we are doing very good with the
University of Guam.
Ms. Bordallo. Good.
Mr. San Nicolas. And so we are just looking to also
capitalize on this opportunity with the military buildup here.
The investment that they're having here, I would like
definitely that they look into the farmers of Guam and see how
we can partner to have this mutual benefit that we can provide
to them.
Ms. Bordallo. What about our schools?
Mr. San Nicolas. Our schools are--that's one thing I think
that we need to look into the current legislation that I was
informed of, and I think we need to revisit that legislation
and see how we can improve on that.
Ms. Bordallo. Very good.
Mr. San Nicolas. Yes.
Ms. Bordallo. Very good. Thank you, Mr. San Nicolas.
I do have more questions, if you're going to call a second
round.
Mrs. Christensen. Yeah. We will do another round. Thank
you.
Mr. Ruder, as we've met with different groups, and perhaps
on the very first day, we began to hear that Japanese, Korean,
and other companies outside of Guam who are already beginning
to come in and position themselves to take advantage of this
buildup, that they seem to know more than the local businesses
here. Are those concerns some that the Chamber also shares?
And, if so, how do you see the Chamber working to position
themselves to ensure that the local businesses will have an
equitable share, be very competitive, to benefit from the
buildup?
Mr. Ruder. Thank you, Madam Chairwoman.
Sure, there's concern, but having said that, borrowing from
what Mr. Lujan was saying, there are certainly opportunities
for Guam businesses and local businesses in particular to work
through Federal and local organizations that are existing to
complete the process of preferred designation status, whether
it'd be ADA certification or small business, women-owned,
minority-owned businesses. So, we think those opportunities are
out there.
The Chamber is very active in that regard through the Small
Business Committee at the Guam Chamber of Commerce, and working
actually very closely with Mr. Lujan's office, as well as SPDC
out at the University.
Mrs. Christensen. Do you feel that there's information
that's being shared outside of Guam that you're not receiving?
Mr. Ruder. My inclination, and I've learned a lot here this
morning, again, thank you for having me, but my inclination is
that--and I think as you stated, this is a long process, and I
trust the folks that are involved both locally, as well as on
the Federal level. And I trust that, as information becomes
available, that it will be shared and that the opportunities,
in particular in our case for local small businesses, will
present themselves.
Mrs. Christensen. OK. Thank you.
Ms. Leberer, much has been made about--in the initial
panel, by the military that the NEPA process and the EIS will
afford the public the opportunity to have their concerns about
the--all of the impacts, but in particular, their concerns
about the negative impacts of the buildup on their culture and
way of life addressed. Do you share this view?
Ms. Leberer. Thank you for the question, Madam Chairwoman.
And I think it is--there's a couple of answers to that. I
think that, there's one EIS for the relocation, but there's a
myriad of projects that are occurring in this entire military
buildup, and they are not all connected. And so in order to
really look at cumulative impacts, I think that that's not
being met.
Another problem that, they did have open houses, DOD did
have some open houses, with some very general, very vague
information for the public, and the public was asked to comment
sort of on anything they could think of that might be an issue.
And then that was incorporated, and as General Bice pointed
out, I believe he said 900 comments were received. But those
are received on sort of the general idea of relocation of the
Marines and not on very specific information.
And when this gets to the point where the EIS is--the draft
EIS has been released with more specific information and
alternatives, then the local agencies and the community will
have a very short timeline to comment on that, and it will have
already been a little too late for some--if new technologies
arise or new alternatives come too late, then even DOD's hands
are a bit tied and they won't necessarily be able to address
those.
Mrs. Christensen. How would you recommend we deal with
that?
Ms. Leberer. Perhaps some enabling legislation from
Congress to allow DOD a little more flexibility in the EIS
process to really incorporate input and alternatives throughout
the process might help.
I can provide more substantial information----
Mrs. Christensen. And do you see any role for the local
government and the Legislature and----
Ms. Leberer. Well, the local government is trying very hard
to review everything that they can. And in my written
testimony, I talked--and I alluded to the need for increased
capacity for the local agencies.
The local resource agencies are really capacity strapped in
terms of human resources and financial resources, and so some
of what Congress can do to help too would be to increase
allocations for existing Federal grants and also to release
some of the DOD project funding in advance, so that local and
Federal regulatory agencies can use those funds to help really
assess the alternatives in the impacts.
But I think that the local agencies themselves are trying
very hard to be a part of this process, but they're just really
capacity strapped.
Mrs. Christensen. Thank you.
With your permission, Madam Bordallo, I'm going to just ask
my last question.
Ms. Bordallo. OK.
Mrs. Christensen. And then I'll turn to you and let you
complete yours.
Mr. Robertson, this is a problem that we face in the Virgin
Islands. You mentioned that some of the people who could
probably benefit from the buildup by receiving the training and
becoming newly employed with their new skills are not
interested in working in jobs that require manual labor.
Is there anything that you see that can be done or is being
done to increase the interest of that group of individuals in
coming into this workforce and taking advantage of the
opportunities?
Mr. Robertson. Yes. We did commission a study a couple of
months ago on that very question, and we realize that we have
to put together an ad campaign, maybe with the radio,
newspaper, television components to it and to try to change
attitudes to some degree, because there is a mindset on the
island that construction is a dirty business and is supposed to
be done by foreigners from Asia. And it is just not so, because
I'm from the construction industry myself. I'm also a
professional engineer, but it is a very good industry to be in.
Mrs. Christensen. It pays well.
Mr. Robertson. A person can earn a lot of money, more so
than in lot of other cases.
So, we have to change that attitude.
Mrs. Christensen. Thank you.
Ms. Bordallo?
Ms. Bordallo. Thank you. Thank you very much, Madam Chair I
will just run through the rest of my questions. Is that all
right with----
Mrs. Christensen. Yes.
Ms. Bordallo. All right.
Mr. Ruder, I have a question for you. The visitor industry
must be nourished and protected in the years ahead. You suggest
expanding the Guam-Only Visa Waiver Program. What specific ways
can we improve this program, and should the visitors' stay be
expanded from 15 to 30 days? How can we streamline the process
to add new visitor markets to this program?
Mr. Ruder. Well, I think certainly recognizing the issues
is a good place to start the discussion. For example, Guam once
enjoyed a Guam-Only Visa Waiver for Korea, which was exclusive
to Guam, that's now been extended to the continental United
States.
Ms. Bordallo. That's correct.
Mr. Ruder. That's certainly going to impact the visitor
industry.
So, understanding that, we think that we need to look
outside of our core markets and try to expand the Guam-Only
Visa Program to some more of the emerging markets in the Asia-
Pacific region.
Certainly, the first market that comes to mind is China,
and I know that's been discussed, and it is a discussion that's
ongoing.
Ms. Bordallo. How many days?
That's 15 to 30? That's the timeframe?
Mr. Ruder. Certainly the--within reason, the longer that we
could have our visitors on Guam, the more beneficial it would
be for the community, within reason, recognizing all the other
concerns.
Ms. Bordallo. My next question, Mr. Ruder, is, it is
definitely noted that the business environment will become very
competitive during this buildup, and it will be very important
for Guam's companies, small, medium, and large, to participate
in the buildup. The Chamber can recognizably fulfill an
important role in ensuring that Guam's companies are prepared
to successfully compete for construction and service contracts,
subcontracts, and other related work.
Can you explain what the Chamber may be doing to help
Guam's companies prepare to successfully compete in a faster
pace, more competitive business environment, and is the Chamber
helping facilitate partnerships between off-island and Guam-
based firms?
Mr. Ruder. Thank you very much for the question,
Congresswoman Bordallo.
Certainly the Chamber for many, many years has been engaged
with the local business community, particularly the small
businesses. Our Small Business Committee is an extremely active
committee that involves all sectors of the community from the
University to GCC, to our very members. So, we hold the number
of ongoing seminars. In fact, there's a seminar this Friday,
not dealing specifically with the Federal Government
procurement issues, more in regards to advancing employee
development within our own small businesses.
So, that's one example, but as I stated earlier, the work
that is done ongoing with the SBA and SPDC are two of our very
good partners in this endeavor.
Ms. Bordallo. Thank you.
Thank you, Mr. Ruder.
Mr. Ruder. OK.
Ms. Bordallo. Ms. Leberer, to your knowledge, has the
Nature Conservancy established a working partnership with the
Department of Defense at any particular instillation and with
such instillation's host community in support of conservation
goals? In other words, is there an example out there that we
can turn to where DOD might have or is currently working in
strong partnership with TNC? Are there conservation-oriented
organizations in a local community in the area of environmental
management? Are there lessons to be learned here or a model to
follow in some sense with respect to what we are facing here in
Guam?
Ms. Leberer. Thank you for the question, Congresswoman.
And, yes, I am not familiar with the specifics, but the
Nature Conservancy in the mainland has several state programs
that work with Department of Defense installations.
I believe Hawaii is an example. And I think that they have
also worked with the local governments and communities.
But I think that I would also like to reemphasize what I
started my testimony with, that the Micronesia program works a
little differently than the state programs. And so it
certainly, I think that we could look to some of those as
potential models, but they may not work entirely as
appropriately for Guam, but it is certainly something that we
would be open to exploring, but only with the expressed
invitation of our local partners on Guam, the local government,
and in consent for consultation with the communities.
Ms. Bordallo. Another question I have, given your work in
the islands and your professional experience, can you comment
on how DOD is currently controlling for invasive species on
Guam and in the region? Are there areas for improvement, and
can you give us some specific ideas for how invasives can be
controlled, given the buildup plan?
Ms. Leberer. I focused on invasive species for the past two
years, but in my prior life in the Government of Guam, I worked
with many of the agencies that are trying to control and
eradicate, in the particularly the brown tree snake in Guam,
and I was also present when the results of the Brown Tree Snake
Commission were presented in 2005. And I believe one of the
biggest challenges in regards specifically to the Department of
Defense was a bit of challenge with communication and
coordination. I think that has improved since the results were
released. I think they definitely have a huge role to play.
The House, the U.S. Department of Agriculture's Wildlife
Services, the APHIS Program, and they are really critical in
helping us to prevent the spread of the invasive species off or
on Guam. I think prevention is the key. Prevention is much more
cost effective than control and eradication. It costs Guam over
$10 million--it cost Guam and Hawaii, and in other places, over
$10 million a year to try to control and eradicate the brown
tree snake.
I think there are certain things that Department of Defense
can also implement, like in the case of marine invasives. They
don't have a built management plan in place apparently, and
that's something that they also could help our Port Authority
to implement. That's something they could implement. They are
considering training exercises in the Freely Associated States,
and that will increase the risk of marine invasives traveling
through village water.
So, I think that prevention is the key. Congress can help
with infusions of support for a rapid response and prevention
and quarantine programs, and all that.
Ms. Bordallo. Thank you. Thank you.
And I have one follow-up to Mrs. Christensen's line of
questioning. Is the work and the report prepared by the
Governor's Civilian-Military Task Force Report as broad and as
in-depth to be an adequate response during the comment period
on the EIS?
Ms. Leberer. Again, I think that it was a good response to
the current level of information that was received, but I think
that even the Department of Defense themselves, things have
been changing rapidly and information isn't always as available
to the local resource agencies. And, in the words of Department
of Defense, I don't think they always know exactly which
projects are passed. But I think the earlier that all of the
information is available, the better the review would be for
all of us.
Ms. Bordallo. Thank you.
And, a couple of last questions for Mr. Robertson. In your
mind, what would you consider a successful skilled trade
training program to look like? Congresswoman Christensen
mentioned this, but what level of financing would it need, how
many students would it need to enroll in order better meet the
needs of the buildup?
And in your testimony, we heard that the response just is
not good, and I think you said that it is because we are so
used to foreign workers coming in that----
Mr. Robertson. Right.
Ms. Bordallo --we don't feel that. And I agree with you
wholeheartedly. Construction jobs and blue collar workers are
making far more money than professionals throughout the United
States.
So, can you answer that for me?
Mr. Robertson. Yes.
Our cost of operation is actually quite low, because we
have a low overhead, and so the figure I gave you of $2,500 to
$3,000 per year, per student, is a good number.
In addition to that, in some cases, there might need to be
a stipend given to the trainee, because maybe he needs to
sustain his family while he's studying.
But also at the same time, we are looking at the people
getting jobs either rapidly, so they'd be drawing a salary from
their employer, which would be a percentage of the total,
starting out 60 percent of wage, then working up to a 100
percent when they complete the journeyman status.
And we, in our Academy, don't want to grow so fast that we
lose control of what we are doing. So, we would like to get up
to a hundred fairly soon, but we need a facility to do that,
and then get to 200 and then 500, and we are certainly willing
to go beyond that. But even 500 people coming into the program,
we are looking at 3 or 4 years to actually complete all the
study and all of the OJT to become an apprentice. So, it
doesn't contribute mightily to the numbers needed for
construction among the journeymen.
Ms. Bordallo. Well, I think it is important that we get the
word out in the community, and I think that if you run this
through radio and television, this is all public service ads on
their part, hopefully. But I think that's what it needs. It
needs to get the word out throughout the island.
Now, my last question, can you generally explain for us any
GCA held positions on prevailing wage rates for workers, and
also on the issue of foreign labor? Are there any particular
concerns or overviews of the Associations that Federal
partners, Congress, and the local government, should keep in
mind as the planning continues?
Mr. Robertson. A very good question, thank you for that.
We have been working with the local Department of Labor,
and we have recently come together and agreed on some rates. We
are rationally increasing the level of pay to most of the
trades. And this would be payable to the H2B workers, as well
as a minimum for the local workers.
At this point in time, we don't see a need for your office
to get too deeply involved in that. We don't want to raise the
rates too radically because it would affect not only our
industry, but also affect other businesses and industries on
Guam, because it would draw people from those industries over
the construction and disrupt perhaps their activity. We don't
want to do that.
Could I possibly respond to a question given to Mr. Ruder
awhile ago?
Ms. Bordallo. Surely; surely.
Mr. Robertson. And that is about dissemination of
information.
And I do know from a very reliable source that the Minister
of Defense in Japan did have an Industry Forum on the 3rd of
August. I don't know what was discussed, but I was told about
it a few days before it happened.
And in addition to that, I know reliably that an
architectural firm from Japan visited Guam a few weeks ago, and
they had a contract from the Ministry of Defense to begin doing
preliminary designs for the Marine Corps. And it is possible
they're just doing some preparatory work, and I've asked some
of the people of JGPO. They don't know anything about it. So,
apparently they're just trying to get a head start on it.
But I would like to add quickly that there are a lot of
rumors running around, and people sometimes give out what is
really truly rumor as fact, like the Koreans going to be doing
all this work with the Japanese, and I don't think there is any
substance to it at all.
Ms. Bordallo. You know, I'm glad you brought that point up,
Mr. Robertson, because I think that is the core problem to some
of this dissension here, is people are just listening to anyone
coming up, talking this and that without any authority. So, I
think if we just hold together until official word comes out,
that we will be a lot better off as a community.
So, again, I want to thank you all for being here as
witnesses. Thank you for your testimony.
I yield back.
Ms. Cristobal. Madam Chair, may I?
Mrs. Christensen. Senator Cristobal.
Ms. Cristobal. Yes.
Thank you, Madam Chair.
I just wanted to get back to your question earlier, because
it kind of took me aback, your question with respect to kind of
having some kind of middle ground between the Chamber of
Commerce's survey and what I feel the Chamorro people----
Mrs. Christensen. And if I could I just interrupt you for
just a minute.
And it is not just a survey. I referenced that, but it is
the--I think it is a general consensus that most people support
the military buildup. So, if we could get away from the survey
for a minute.
Ms. Cristobal. OK. Well, that's fine.
Madam Chair, just, I recall looking at your website and I
remember seeing that you do have the purview of the full
political development of our people. And it just occurred to me
that it is really kind of unfair to ask the Chamorro people to
resolve this unresolved issue of political status, and I think
that the influx and rather the planned military buildup
presents a missed opportunity if Congress does not take it upon
itself, because Congress is the ultimate authority that will
determine the civil rights and political status of the native
inhabitants according to the Treaty of Peace of 1899. And it
just dawned on me that it is really unfair. I don't think it
should be continuously a local initiative.
We, like our Congresswoman has stated, spent enough money
to try and attain some kind of standing through a political
status, and we, I was also part of the negotiations that
occurred in the latest bout, and that was not successful. So,
we have had some failed Congressional hearings, we have had
some failed local initiatives to the local leadership here. I
think it is time for Congress to step up and do this for----
Mrs. Christensen. Well, if you could be more specific----
Ms. Cristobal --for us.
Mrs. Christensen. This is a little off topic, but what is
it that you would have Congress do, because the people of
Guam----
Ms. Cristobal. Here we have----
Mrs. Christensen --like the people of the Virgin Islands
are fully authorized to begin a process and to complete that
process of self-determination.
We don't--I have this argument with Puerto Rico all the
time. They don't need to come to Congress to have a referendum
to decide their status. So, what is it specifically that you
would want Congress to do?
Ms. Cristobal. Well, in the U.N. Charter, the United States
has the obligation to promote the economy of the indigenous
people and to usher in the status options. So, how do we get to
that point without the help of the administering power?
And at the U.N. level, Madam Chair, the U.S. has become
increasingly transcendent. They refused to participate. And it
has become very difficult for those of us who go up there, like
I said, where I'm totally unbudgeted. I think this is a
government function, Madam Chair.
Mrs. Christensen. Well----
Ms. Cristobal. It is not a local indigenous people's
function. We have been, for 300 years, living under military
rule. And all the three rulers have always stated that they
have to maintain us for military purposes and control. We need
to move away from that.
Mrs. Christensen. Well, as I said, this is related
because----
Ms. Cristobal. It is.
Mrs. Christensen --this decision is taking place in an
unincorporated territory, although I do not ascribe to the
position that the territory is being treated differently from a
state should this happen, because I think we can find examples
that would support my position that whether it was state or
territory, the Department of Defense would be undertaking the
process in the same way.
But I think that when we go back, we are dealing with this
with Puerto Rico. The Virgin Islands is embarking on an
entirely different process right now of just drafting a
constitution for us as an unincorporated territory. I think
status will follow.
But perhaps we will discuss with our Committee whether we
ought not to hold some hearings to hear from the territories
what--where they are and what they would like to see happen.
So, that would be a separate hearing that we would consider
doing----
Ms. Cristobal. I think that would be quite well, Madam
Chair.
Mrs. Christensen. I hope that you didn't also want to
suggest that because you are an incorporated territory, the
people of Guam were powerless to advocate for change and be
successful in making change happen.
Ms. Cristobal. Obviously we haven't, because we have had
all our local initiatives that have failed at the Congressional
level, Madam Chair. And we have a people here with a 4,000-year
rich history, and we want to continue. Our numbers are
continually diminishing and with the influx of people, our
votes are being diluted.
When I attended the meeting with General Lee, I pointedly
asked him if he would allow U.S. citizens to participate in a
vote of self-determination for the Chamorro people, and he said
``yes,'' that he would. So, obviously there is plan to dilute
our vote. I mean, it is absurd to think that U.S. Armed Forces
people are going to be allowed to decolonize a colony.
Mrs. Christensen. OK. Well--I thank you.
Ms. Cristobal. Thank you, Madam Chair.
Mrs. Christensen. The Congresswoman would agree with me
that we will go back and discuss what having--where we go from
here on that particular issue.
At this point, I want to thank the witnesses for their
testimony and for their very comprehensive answers to our
questions.
The members again may have some further questions, which we
will submit in writing, and ask you to respond in writing too.
And I'd also like to remind everyone that the hearing
record will be open for ten days for the inclusion of any
written testimony, and testimony should be e-mailed to
insular.guamhearing@mail.
house.gov.
If there's--oh, yes. Let me just make a few close--would
you like to make any further closing comments?
Thank you.
Well, in my opening statement, I said that today's hearing
would be the start of the Congressional record, and the
Congresswoman also said that the start of the Congressional
record on the potential U.S. Military buildup of Guam and the
challenges facing this community with the representatives from
the Federal and local governments, as well as representatives
from the community voicing both support and concerns.
I believe that we've gotten off to a good start of
incorporating a myriad of concerns and opinions. Over the past
few days, I've received a full briefing from the Joint Guam
Program Office, the U.S. Marines and the U.S. Navy, as well as
the Air Force, on their plans as they are now being developed
to relocate Marine forces to the island from Japan, and for
other movement of forces and assets that will impact your
community.
In today's public testimony delivered by General Bice, I
heard information that was consistent with what we were
briefed. At this time I'm satisfied that there's not a great
difference between the two. I'm told that your leaders have
received similar information from meetings with General Bice
and other Federal officials. So, I'm hoping that we are all
starting off today from the same page, and I hope that this
hearing has helped to bring us all to that point.
I recognize that the feelings of frustration and
uncertainty in your community are sourced in not knowing what
will happen and being felt--and feeling that you can't affect
change. For some, it is a perceived powerlessness, with respect
to the will of the Federal Government, but I, for one, never
believed that the people are powerless, and I have witnessed
that power and action and have seen it actually make change
happen.
That being said, I believe that there is some side benefits
to the process, because the debate itself will change Guam,
with or without a military buildup, because of the greater
awareness of the problems of infrastructure, of education,
healthcare, environment, and the reliability of essential
services that exist today, as well as some of the insecurities
because of the current status that exist in some segments of
the population.
At the same time, the Federal Government, and most
especially our U.S. Military, should not be surprised at what
the people of Guam are asking for. This is a small island where
the people and their ancestors have had significant moments
that have changed their lives--Magellan's arrival, Spanish
colonization, United States acquisition, and the brutal enemy
occupation. This military buildup is one of those significant
moments, and we must remember that the Guam of today is also
far different from that of the 16th Century or even the 20th
Century. This is the benefit of political and other experience,
and there's also a greater political maturity.
So we are here, we are prepared to be your partners to help
ensure that you maximize a great opportunity this military
buildup can present, and to minimize any untoward impacts that
such a large influx of new people and new military needs could
bring. Our country is indeed fortunate to have Guam as part of
our family. We share the Governor's position that Guam's people
must be viewed as relevant, as important stakeholders, and as
equal partners, and that they must be full participants in this
process.
The island's location is strategic, and the people of Guam
have always been described as some of our country's most
patriotic citizens. A military buildup could seem to be a
natural fit. Some of the finest military leaders are heading up
the project.
It is clear that Guam's leaders are equally skilled and
even more so committed that the buildup considers the negative
impacts on the island community, as well as the potential
positive ones, and I look forward to the Committee being a part
of that process.
And thank you again for those who were witnesses, thank you
for all who attended.
I want to thank the President of the University for, again,
making this hall available and for staying with us throughout
the entire hearing.
And if I don't get a chance to do so publicly again, I want
to thank the people of Guam on behalf of our entire delegation
for their warm hospitality.
Oh, yes, and I want to just remind everyone that the town
hall meeting will be held this coming Thursday at 6:00 p.m. It
will be at the Hilton. And the testimony or the questions or
any comments that are received at the town meeting will also
become a part of the record of this hearing.
So, thank you again. If there's no further business before
the Subcommittee, the Chairman again thanks the members of the
Subcommittee and our witnesses, and the Subcommittee stands
adjourned.
[Whereupon, at 1:01 p.m., the Subcommittee was adjourned.]