[Congressional Record Volume 144, Number 151 (Wednesday, October 21, 1998)]
[Extensions of Remarks]
[Pages E2296-E2297]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           SAVING THE CONSERVATION TRUST FUND OF PUERTO RICO

                                 ______
                                 

                          HON. PHILIP M. CRANE

                              of illinois

                    in the house of representatives

                      Wednesday, October 21, 1998

  Mr. CRANE. Mr. Speaker, before we adjourn I would like to address an 
issue that I regret we have been unable to resolve in this Congress. I 
am speaking about the plight of the Conservation Trust Fund of Puerto 
Rico.
  The Conservation Trust was created in 1968 through a memorandum of 
understanding between the Department of the Interior and the Government 
of Puerto Rico. The people of Puerto Rico are the sole beneficiary of 
the Trust which was created to carry out a conservation plan for the 
protection and enhancement of the natural resources and beauties of 
Puerto Rico. In this area the Trust has been highly successful, 
blending both environmental and historical sites in a manner that 
preserves them for generations to come.
  The Trust Fund has accomplished this at a time when the natural 
resources of Puerto Rico are shrinking rapidly under pressure from 
urban development and population growth. Even mountains, once 
inaccessible, are now impacted by new construction.
  A survey of the Island reveals dramatic contrasts in both its 
landscape and wildlife. Formed by volcanic eruptions more than 120 
million years ago, Puerto Rico is small in land area--3,500 square 
miles. Yet it supports diverse biological communities including more 
than 3,000 plant species, 232 species of birds and numerous reptiles 
and amphibians. Many of these plants and animals are unique to the 
Island. A large percentage are included on the endangered species list, 
among them the Puerto Rican Parrot, one of the most endangered birds in 
the world.
  Puerto Rico's small land surface currently sustains 3.7 million 
inhabitants, a population density of 1,000 per square mile, the second 
largest in the hemisphere. This is translated into approximately one 
million dwellings. There are 1.8 million automobiles and four times 
more roads per square mile than on the United States mainland. It has 
been said that you can fit the entire population of Puerto Rico in the 
front seat of the cars on the Island. Moreover, in the metro area of 
San Juan, the constructed acreage has increased from 10,000 acres in 
1950 to more than 60,000 acres by 1994.
  In Puerto Rico, the history of land conservation in the last century 
is scant. All major land reserves, such as the United States Forest 
Service Caribbean National Forest and other forests under government 
jurisdiction originate from Spanish colonial times. During the past 25 
years the only significant efforts to preserve critical land resources 
has been conducted by the Conservation Trust. Even with this active 
role, only 5% of the Island of Puerto Rico is under some protection by 
either federal or local conservation agencies or by the Trust. This 
number is half the percentage of

[[Page E2297]]

the United States and less than 25% that of Costa Rica. The Trust is 
the only real entity involved in land acquisition projects for 
conservation in Puerto Rico.
  In the original plan, the Trust was funded by a fee imposed by the 
Secretary of the Interior on the petroleum industry operating on the 
Island. This financial arrangement existed for approximately 10 years 
but, as the industry left the Island, a new source of funding became 
necessary. In the mid-1980s to mid-1990s that source became Section 936 
of the Internal Revenue Code and the so-called QPSII (Qualified 
Possession Source Investment Income) provision of that law. This 
allowed the Trust to ultimately generate an income that reached a peak 
of $10 million annually. In 1993, the Trust realized that Section 936 
might have a finite life span and halted all major property 
acquisitions and capital improvements. The Trust started saving money 
to build an endowment to fund the Trust in future years. It was 
estimated that approximately $80 million would need to be accumulated 
to achieve this goal. To this day roughly $30 million has been saved.
  Unfortunately, Section 936, which did much to raise the standard of 
living in Puerto Rico and expand employment opportunities throughout 
the Island, was phased out, over my objections, by Congress in 1996. 
With the elimination of Section 936, the Trust was left without a 
source of income to continue the savings program. Several alternatives 
were explored and, after a great deal of consideration, a consensus 
developed among the Trust supporters here in Congress. A legislative 
proposal was developed, in conjunction with the Governor of Puerto 
Rico, the Secretary of the Interior and my office to accomplish this 
task with the proposal's funding mechanism being tied to the rum tax 
that is collected on rum tax entering the U.S. from the Virgin Islands 
and Puerto Rico. A portion of this rum is returned (covered over) to 
Puerto Rico and the Virgin Islands and it was with a portion of this 
covered over amount that the Trust would receive funding for a five 
year period. It was the hope of me and many of my colleagues to 
implement a solution in this year's tax bill. Unfortunately, this did 
not happen.
  Under the excellent leadership of its Executive Director, Javier 
Blanco and its Deputy Executive Director, Jose Barreto, the Trust has 
done a superb job with limited resources in fulfilling its mission. 
With this statement, I want to assure my colleagues that, should I be 
reelected, I plan to continue to find an equitable solution to the 
plight faced by the Trust so that Javier and Jose can continue to do 
their good work.

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