[Congressional Record (Bound Edition), Volume 154 (2008), Part 6]
[Extensions of Remarks]
[Pages 8088-8089]
[From the U.S. Government Publishing Office, www.gpo.gov]




         INTRODUCTION OF THE JOINT GUAM PROJECTS OVERSIGHT ACT

                                 ______
                                 

                       HON. MADELEINE Z. BORDALLO

                                of guam

                    in the house of representatives

                         Wednesday, May 7, 2008

  Ms. BORDALLO. Madam Speaker, today I have introduced H.R. 5931, the 
Joint Guam Projects Oversight Act, to ensure appropriate implementation 
and oversight of the realignment of military installations and the 
relocation of military personnel on Guam. I am joined by my colleague 
from Hawaii, Mr. Abercrombie, in introducing this legislation.
  The rebasing of military forces from Okinawa, Japan to Guam is a 
component of the United States-Japan Alliance Transformation and 
Realignment Agreement signed in May 2006. Additionally, planned for 
Guam is the reassignment of a significant number of airmen from Korea, 
the standing-up of a U.S. Army air defense battalion and improvements 
to Naval Base Guam. These major realignments present significant 
challenges and opportunities for the community on Guam.
  Over the next 6 years the Department of Defense and the Government of 
Japan plan to spend over $10 billion to support the realignment of 
units of the III Marine Expeditionary Force from Okinawa to Guam and an 
additional $3 billion on upgrades and improvements at Andersen Air 
Force Base. The Government of Japan has pledged to contribute over $6 
billion to support the rebasing of units from Okinawa to Guam through 
direct contributions to the United States Treasury and through Special 
Purpose Entities (SPEs). Funding of some projects by a foreign 
government poses significant challenges to Congress's right and 
responsibility to oversee this realignment. H.R. 5931 creates a new 
account for the realignment to Guam. The account entitled the ``Guam 
Defense Policy Review Initiative Account'' would help the Department of 
Defense manage its expenditures on projects associated with the 
realignment of military forces on Guam.
  This legislation also addresses the unique nature of the SPEs. 
Department of Defense officials indicate that SPEs are intended to 
operate in a manner similar to other public-private ventures that 
currently exist with respect to other projects in the United States. 
Our legislation expresses a Sense of Congress that the SPEs should 
operate as publicprivate ventures. It also encourages the Department of 
Defense to ensure that all construction projects on Guam, operated and 
maintained by SPEs, should meet U.S. standards. It also encourages the 
Department of Defense along with the Government of Japan to consider 
utilizing the SPEs for projects other than military housing and utility 
infrastructure improvements. Moreover, if the SPEs are utilized to 
improve utilities on Guam the improvements must be made to the overall 
grid operated by the Government of Guam and not solely for the benefit 
of military installations. Improvements to the overall utility 
infrastructure on Guam will be more cost-effective.
  The $13 billion investment by the Department of Defense and the 
Government of Japan is intended primarily for military infrastructure. 
However, the Government of Guam estimates that additional funds will be 
needed to improve civilian infrastructure, including schools, public 
safety, water, wastewater, utility, and road improvements to 
accommodate the additional population on the island. As we near the end 
of the Bush Administration's term it is important that the Federal 
Government work closely with the Government of Guam to develop 
Memoranda of Understanding, MOU, to ensure Federal commitments that 
Guam can rely on. The MOUs can be facilitated by utilizing the 
Interagency Group on the Insular Areas, IGIA, established by executive 
order of the President. The legislation includes a Sense of Congress 
that these MOUs must be developed to ensure that the build-up is a 
success. In reference to planning, the legislation also authorizes the 
Office of Economic Adjustment, OEA, within the Department of Defense to 
provide planning funds to the Commonwealth of the Northern Mariana, 
Islands, CNMI. This will support appropriate planning by the Government 
of the CNMI for increases in population and military activity resultant 
from the establishment and utilization of training ranges in the CNMI. 
Currently, the OEA lacks the authority in law to provide planning funds 
to the CNMI and this provision would correct this omission in law.
  It is important that military construction projects on Guam be energy 
friendly and meet strong environmental design standards. The 
legislation requires the Department of Defense to meet Leadership in 
Energy and Environmental Design, LEED, silver rating standards. LEED 
standards have been developed and are approved by the U.S. Green 
Building Council. The legislation also requires the Secretary of 
Defense to report back to Congress on establishing a goal for energy 
renewability on Guam. The major construction effort supporting the 
build-up should be conducted in the most environmentally friendly and 
energy efficient manner as possible.
  The legislation also prioritizes the small business community in this 
military build-up. 


[[Page 8089]]


The bill contains a provision that would limit the 
Historically Underutilized Business Zone, HUB Zone, preference for work 
performed in excess of 150 miles from the primary office location of a 
HUBZone firm. This provision would ensure that construction projects 
benefit the local businesses and economy. Moreover, the legislation 
would authorize the establishment of a Procurement Technical Assistance 
Center, PTAC, on Guam to help local small businesses navigate the 
complexities and bureaucracy of Department of Defense contracting.
  Finally, the legislation will require all contractors to certify 
their compliance with local tax and licensing requirements. The 
provision grants the contracting agent within the Department of Defense 
the ability to withhold final payments on contracts if the contractor 
is found to be delinquent in paying their local tax obligations. This 
provision is important to ensuring the Government of Guam will be able 
to collect revenue from this build-up and apply such revenue to make 
needed improvements to civilian infrastructure.
  The military build-up on Guam presents many opportunities and many 
challenges. I firmly believe that the legislation I have introduced 
today with Mr. Abercrombie will help facilitate congressional oversight 
and accountability of build-up activities as well as provide additional 
tools for the local government and businesses to make this build-up a 
success. This legislation addresses issues important to the people of 
Guam and would help to ensure the success of the military build-up both 
for the Department of Defense and for the people of Guam.

                          ____________________