[Senate Report 107-180]
[From the U.S. Government Publishing Office]
Calendar No. 448
107th Congress Report
SENATE
2d Session 107-180
======================================================================
EXCHANGING LAND RIGHTS RECEIVED UNDER THE ALASKA NATIVE CLAIMS
SETTLEMENT ACT
_______
June 26, 2002.--Ordered to be printed
_______
Mr. Bingaman, from the Committee on Energy and Natural Resources,
submitted the following
R E P O R T
[To accompany S. 1325]
The Committee on Energy and Natural Resources, to which was
referred the bill (S. 1325) to ratify an agreement between the
Aleut Corporation and the United States of America to exchange
land rights received under the Alaska Native Claims Settlement
Act for certain land interests on Adak Island, and for other
purposes, having considered the same, reports favorably thereon
with an amendment and recommends that the bill, as amended, do
pass.
The amendment is as follows:
On page 7, line 2, strike ``Notwithstanding any other
provision of law,'' and insert ``Notwithstanding the Federal
Property and Administrative Services Act of 1949, as amended
(40 U.S.C. 483-484) and the Defense Base Closure and
Realignment Act of 1990, as amended (10 U.S.C. 2687),''.
PURPOSE
The purpose of S. 1325 is to ratify an agreement between
the Aleut Corporation and the United States to exchange land
rights received under the Alaska Native Claims Settlement Act
for certain land interest on Adak Island.
BACKGROUND AND NEED
Adak Island is located in the middle of the Aleutian
Islands chain, approximately 1,200 miles from Anchorage,
Alaska, between the Pacific Ocean and the Bering Sea. In 1913,
Adak Island was withdrawn as a wildlife preserve, and, in 1940,
designated as a National Wildlife Refuge. Section 303 of the
Alaska National Interest Lands Conservation Act designated Adak
as part of the Alaska Maritime National Wildlife Refuge.
In 1959, the northern portion of Adak Island was withdrawn
for use by the Navy for military purposes. The Navy built
infrastructure on the island that can support a small city of
approximately 6,000 people. As a result of the designations and
withdrawals made for military and wildlife purposes, Adak
Island was not available for selection by the Aleut Corporation
under the Alaska Native Claims Settlement Act (``ANCSA'').
Pursuant to the Defense Base Closure and Realignment Act of
1990, the Department of Defense closed the Adak Naval Complex.
The Aleut Corporation became interested in acquiring the Adak
Naval Complex as part of its land entitlement under ANCSA and
offered to exchange various non-contiguous parcels elsewhere in
the refuge. The Corporation would like to use some of the
facilities for commercial purposes.
In September 2000, the Aleut Corporation, the Department of
the Navy, and the Department of the Interior completed
negotiations on a land exchange agreement, which is expressly
subject to congressional approval. Pursuant to the agreement,
the Aleut Corporation would transfer approximately 47,150 acres
of various tracts within the wildlife refuge to the Fish and
Wildlife Service. In return, the Aleut Corporation would
receive the same number of acres of land previously used by the
Navy, including buildings, equipment and infrastructure. The
Navy would transfer this land to the Secretary of the Interior,
who in turn would convey it to the Corporation.
Under the agreement, the Navy assumes all responsibility
and liability for cleanup of unexploded ordnance remaining
within the Naval complex. The Navy also assumes all
responsibility for cleanup of the 96 contaminated landfill
areas that make the Complex a listed superfund site. Moreover,
prior to conveyance, the Navy agrees to abate all friable,
accessible, and damaged asbestos-containing materials
identified in the Navy's most recent asbestos survey.
If any asbestos-containing materials become friable after
the date of conveyance, the Aleut Corporation agrees to assume
responsibility for any remediation necessary to use the
buildings. The Corporation also agrees to carry out necessary
remediation of lead-based paint in structures that the
Corporation elects to use on lands transferred from the Navy.
Pursuant to the agreement, the United States retains
easements or long-term nominally-priced leases for use of
various properties, including the airport and the Fish and
Wildlife Service headquarters building. In addition, the
Department of the Interior will agree to any reasonable request
by the Aleut Corporation to move its headquarter to another
building, and the Corporation will be responsible for all
relocation expenses.
The agreement states that the Navy will clean up the lands
and then make a Finding of Suitability to Transfer (``FOST'').
The Aleut Corporation will then have the option of either
accepting or rejecting the exchange within 90 days of the FOST
issuance, depending in part on the Corporation's success in
obtaining financing for development of the Complex.
LEGISLATIVE HISTORY
S. 1325 was introduced by Senator Murkowski on August 2,
2001. The Committee held hearings on similar, S. 1488, in the
105th Congress, although no further action was taken. The
Subcommittee on Public Lands and Forests held a hearing on S.
1325 on May 9, 2002. The Committee on Energy and Natural
Resources considered S. 1325 and adopted an amendment to it at
its business meeting on May 15, 2002. The Committee ordered the
bill as amended favorably reported at its business meeting on
June 5, 2002.
COMMITTEE RECOMMENDATION
The Senate Committee on Energy and Natural Resources, in
open business session on June 5, 2002, by a voice vote of a
quorum present, recommends that the Senate pass S. 1325, if
amended as described herein.
COMMITTEE AMENDMENT
During its consideration of S. 1325, the Committee on
Energy and Natural Resources adopted an amendment which
specifies the laws excepted by section 6(a) of the bill, rather
than creating a blanket waiver of ``any provision of law.''
SECTION-BY-SECTION ANALYSIS
Section 1 contains congressional findings.
Section 2 ratifies the ``Agreement Concerning the
Conveyance of Property at the Adak Naval Complex'' (September
20, 2000), and any technical amendments to the Agreement. This
section provides that any modification to the lands to be
removed from the National Wildlife Refuge requires the
agreement of all parties and notification of Congress, and that
at least 36,000 acres of land be conveyed to the Aleut
Corporation under any modified agreement.
Section 3 provides that lands removed from the National
Wildlife Refuge under the Agreement shall neither be considered
part of the Alaska Maritime National Refuge nor be subject to
any laws pertaining to it, including the conveyance
restrictions imposed by section 22(g) of ANCSA.
Section 4 determines that land conveyed by the United
States under the Act shall be treated as conveyance of lands or
interests under ANCSA, except that receipt of such lands or
interests shall not constitute a sale or disposition of land or
interests received pursuant to ANCSA. Public easements for
access to lands and waters under the Agreement are deemed to
satisfy section 17(b) of ANCSA.
Section 5 provides that the Secretary of the Interior may
acquire lands conveyed to the Aleut Corporation under the Act
by purchase or exchange, on a willing seller basis only. Any
reacquired lands shall be automatically included in the Refuge
System.
Section 6(a) states that notwithstanding the Federal
Property and Administrative Services Act and the Defense Base
Closure and Realignment Act, Department of Navy personal
property remaining on Adak Island is deemed related to the real
property and shall be conveyed to the Aleut Corporation at no
additional cost.
Subsection (b) requires the Secretary of the Interior to
convey to the Aleut Corporation those lands identified in the
Agreement as former landfill sites without charge to the
Corporation's entitlement under ANCSA.
Subsection (c) provides that any property received pursuant
to the Act shall be treated as not developed until actually
occupied, leased or sold by the Aleut Corporation or its wholly
owned development subsidiary. This provision applies to
determinations under section 21(d) of ANCSA and section 907(d)
of the Alaska National Interest Lands Conservation Act.
Subsection (d) states that upon conveyance to the Aleut
Corporation of the lands described in Appendix A of the
Agreement, the lands described in Appendix C of the Agreement
will become unavailable for selection under ANCSA.
Subsection (e) provides that the maps in Appendix A to the
Agreement describe the lands to be conveyed to the Aleut
Corporation, and shall be left on file at indicated Fish and
Wildlife Service offices. In the case of any discrepancies, the
maps shall control over the written legal descriptions of the
same lands in Appendix A.
COST AND BUDGETARY CONSIDERATIONS
The following estimate of the costs of this measure has
been provided by the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, June 17, 2002.
Hon. Jeff Bingaman,
Chairman, Committee on Energy and Natural Resources,
U.S. Senate, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1325, a bill to
ratify an agreement between the Aleut Corporation and the
United States of America to exchange land rights received under
the Alaska Native Claims Settlement Act for certain land
interests on Adak Island, and for other purposes.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contacts are Megan
Carroll (for federal costs), and Marjorie Miller (for the state
and local impact).
Sincerely,
Barry B. Anderson
(For Dan L. Crippen, Director).
Enclosure.
S. 1325--A bill to ratify an agreement between the Aleut Corporation
and the United States of America to exchange land rights
received under the Alaska Native Claims Settlement Act for
certain land interests on Adak Island, and for other purposes
CBO estimates that implementing S. 1325 would have no
significant impact on the federal budget. The bill would not
affect direct spending or receipts; therefore, pay-as-you-go
procedures would not apply.
S. 1325 would ratify an agreement between the federal
government and the Aleut Corporation, an Alaskan Native
corporation. Under that agreement, the federal government would
convey to the corporation about 47,000 acres of federal lands
and improvements on Adak Island in Alaska. In exchange, the
corporation would give up its entitlement to 47,000 acres of
undeveloped federal lands in the Aleutian Islands, which it has
selected under the Alaska Native Claims Settlement Act. Under
the agreement that would be ratified by the bill, the Fish and
Wildlife Service (FWS) would manage those lands in the Aleutian
Islands as part of the national wildlife refuge system.
The lands that would be conveyed to the corporation under
S. 1325 comprise the site of a former naval air facility that
was closed in 1996. According to the Department of Defense
(DoD) and the FWS, the lands currently generate no receipts and
are not expected to do so over the next 10 years; hence, CBO
estimates that the proposed exchange would not affect
offsetting receipts. Based on information from DoD and the FWS,
we also estimate that the exchange would not significantly
affect federal costs for land management.
S. 1325 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act and
would impose no costs on state, local, or tribal governments.
Any costs that the corporation would incur as a result of the
agreement ratified by this bill would be voluntary.
On May 3, 2002, CBO transmitted a cost estimate for H.R.
4546 as ordered reported by the House Committee on Armed
Services on May 1, 2002. Section 2863 of that legislation is
substantively similar to S. 1325, and our estimates of the cost
of the proposed land exchange under both pieces of legislation
are the same.
The CBO staff contacts for this estimate are Megan Carroll
(for federal costs), and Marjorie Miller (for the state and
local impact). This estimate was approved by Robert A.
Sunshine, Assistant Director for Budget Analysis.
REGULATORY IMPACT EVALUATION
In compliance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee makes the following
evaluation of the regulatory impact which would be incurred in
carrying out S. 1325. The bill is not a regulatory measure in
the sense of imposing Government-established standards or
significant responsibilities on private individuals and
businesses.
No personal information would be collected in administering
the program. Therefore, there would be no impact on personal
privacy.
Little, if any, additional paperwork would result from the
enactment of S. 1325.
EXECUTIVE COMMUNICATIONS
The testimony provided by the Department of the Interior
and the Department of the Navy at the Subcommittee hearing
follows:
Statement of Randal Bowman, Special Assistant to the Assistant
Secretary for Fish, Wildlife, and Parks, Department of the Interior
Mr. Chairman, thank you for the opportunity to testify
today on S. 1325, which would ratify a land exchange agreement
negotiated between the Federal government and The Aleut
Corporation concerning the former Naval Air Facility, Adak, and
much of the surrounding military withdrawal on the remote Adak
Island in the Aleutian Chain of Alaska.
After five years of negotiations, The Department of the
Interior, the Department of the Navy, and The Aleut Corporation
signed a land exchange agreement in September of 2000. This
Agreement has subsequently been renewed twice. Legislation
ratifying the signed agreement is necessary to remove the
former Naval Complex from the National Wildlife Refuge system.
Legislation would also resolve several legal issues regarding
the conveyance of real and personal property.
Adak Island was withdrawn in 1913 as a wildlife preserve
and in 1940 designated a National Wildlife Refuge. In 1959, the
Secretary of the Interior withdrew and reserved the northern
portion of the island for use by the Navy for military purposes
in Public Land Order No. 1949. In 1980, the Alaska National
Interest Lands Conservation Act incorporated Adak Island, and
other refuge islands, as part of the new Alaska Maritime
National Wildlife Refuge. The Naval Air Facility--Adak was
operationally closed in March 1997 under the Base Realignment
and Closure procedures. The Navy will request revocation of the
Public Land Order as the final part of its base closure and
cleanup.
At its peak, the Navy-built infrastructure on Adak could
support a small city of about 6,000 people. The Naval Complex
is also a ``Super Fund Site'' with more than 96 contaminated
sites. The Navy has acknowledged responsibility for cleanup and
is currently taking remedial actions. However, it is unlikely
that the intensively used area could be suitably rehabilitated
for use as a wildlife refuge.
After the base closure announcement was made, The Aleut
Corporation offered to exchange a portion of its Alaska Native
Claims Settlement Act entitlement, elsewhere in the Aleutian
Islands, for the northern portion of Adak Island occupied by
the Naval Complex. With the exception of cemetery and historic
sites, Adak Island was not available for selection under the
1971 Alaska Native Claims Settlement Act.
The outline of a basic exchange agreement was negotiated by
the Fish and Wildlife Service, the Navy and The Aleut
Corporation in December 1996. This agreement involved an
unequal value exchange of about 47,000 acres of The Aleut
Corporation's Alaska Native Claim Settlement Act entitlement
for an equal number of acres including the improvements on the
Adak Naval Complex. Negotiations were complex and required the
resolution of issues such as indemnification, long-term
responsibility for demolition and cleanup of the buildings not
needed for reuse, actual exchange boundaries, the status of the
Fish and Wildlife Service's administrative facilities on Adak
and The Aleut Corporation's desire for an immediate master
lease on Adak to start reuse prior to completion of an exchange
agreement. In March of 1998, a hearing was held before the
Senate Committee on Energy and Natural Resources. Several weeks
after the hearing the Navy announced they had discovered
archival evidence from World War II of additional unexploded
ordnance (UXO). The discovery stalled negotiations and started
an intensive ordnance and explosives cleanup on the island.
In September of 2000, with ordnance and explosives cleanup
underway and several significant issues regarding exchange
boundaries resolved, the Parties signed an exchange agreement.
This agreement has been renewed twice and is currently valid
until December 31, 2002. Additionally, The Aleut Corporation is
trying to establish viable businesses and a community on the
island. The city of Adak was incorporated as a second-class
city by the State of Alaska in spring of 2001. In March 2002,
the Navy announced that the last uniformed Navy personnel had
left the island. The Navy has recently signed a Finding of
Suitability for Transfer for 32,150 acres of lands included in
the agreement. Cleanup will continue this summer on the
remainder (15,000 acres) of the exchange lands and presumably a
Finding of Suitability for Transfer for this remainder can be
finalized in 2003. It should be noted that the decision point
for the Aleut Corporation in the signed agreement is 90 days
after EPA concurs with the Finding of Suitability for Transfers
signed by the Navy for the remainder of the exchange lands.
By our actions over the last seven years, the Service has
clearly demonstrated our commitment in helping The Aleut
Corporation reuse the former Adak Naval Air Facility. We are
willing to have lands with improvements on Adak removed from
the Alaska Maritime National Wildlife Refuge in exchange for
undeveloped land elsewhere in the Aleutians. We want the
community of Adak to succeed. Like the Aleuts, the Alaska
Maritime National Wildlife Refuge has a long-term commitment in
the Aleutians. For years, the Navy presence on Adak facilitated
our management activities in the Aleutians. We maintain a
refuge subunit headquarters on the island and have used Adak as
a resupply port for our 120 foot research vessel. We will
continue working in the Aleutians and with the community of
Adak.
We recognize both The Aleut Corporation's desire to
profitably convert the considerable infrastructure on Adak to a
successful new community as well as their reluctance to expose
their corporation to financial risk. Therefore The Aleut
Corporation, not the Federal Government, must make their final
decision as to whether a land exchange involving Adak is in the
best interest of the corporation and its shareholders.
In the end a land exchange involving national wildlife
refuge lands must also benefit, or at least not harm, the
National Wildlife Refuge system. Therefore, we support the
approach S. 1315 takes of ratifying a completed exchange
agreement between the Federal Government and The Aleut
Corporation. We have negotiated a good agreement that gives The
Aleut Corporation considerable land and facilities on Adak in
exchange for their entitlement to other Aleutian islands
valuable as wildlife habitat.
------
Statement of H.T. Johnson, Assistant Secretary of the Navy
(Installations and Environment)
Mr. Chairman and members of the Committee, I am H.T.
Johnson, Assistant Secretary of the Navy (Installations and
Environment). I appreciate the opportunity to speak to you
today on S. 1325.
NAVY SUPPORTS S. 1325 AND H.R. 4546
S. 1325 would ratify an agreement signed in September 2000
by The Aleut Corporation (TAC), the Department of the Navy
(DON), and the Department of Interior (DoI) to exchange land
and related personal property. Similar language is included in
Section 2863 of H.R. 4546. The differences between the two
bills are not significant to the DON, and we would support
either one.
The legislation is the critical enabler that would allow
Navy to dispose of property that comprised the former Naval Air
Facility Adak (NAF Adak), Alaska, which was closed as a result
of the 1995 round Base Realignment and Closure (BRAC). It would
promote economic reuse of the developed portions of the base by
native Alaskans, while enhancing the Alaska Maritime National
Wildlife Refuge. I urge your support of this legislation. Its
enactment this year will permit timely implementation of the
land conveyance it authorizes.
Let me share a bit of background about the Navy's presence
at Adak, some details of the transfer agreement, and Navy's
efforts to complete environmental cleanup and promote economic
reuse.
NAVAL AIR FACILITY, ADAK
Adak Island has been federal property since the United
States acquired Alaska from Russia in 1867. Since 1913 it has
been a federal wildlife refuge. In 1980, all of Adak Island was
included within the Alaska Maritime National Wildlife Refuge
established by Congress in the Alaska National Interest Lands
Conservation Act (ANILCA), and it remains part of that wildlife
refuge today.
Military presence on Adak began during World War II with
its use [occupation] as a staging area to mount a
counteroffensive to dislodge the Japanese from Attu and Kiska
Islands. Navy presence at Adak was officially recognized by
Public Land Order 1949, dated August 19, 1959, which withdrew
the northern portion of Adak Island, comprising about 76,800
acres, for use by the Navy for military purposes.
Notwithstanding that withdrawal, the property remains part of
the wildlife refuge. Navy used the base to conduct a variety of
Cold War era military activities.
Naval Air Facility Adak was on the list of DoD
installations recommended for closure in 1995, and the
recommendations became final when Congress did not disapprove
the list. The active Navy mission ceased and the base
operationally closed in March 1997. Since then, the Navy has
been doing environmental cleanup and property disposal
activities.
In most cases, closing military bases have been located
within or near established communities and the affected local
governments usually form a local redevelopment authority to
plan and implement reuse. Adak was located in the unorganized
borough of Alaska. It was not near to or part of a local
community or within the jurisdiction of any political
subdivision of the state. The Adak Reuse Corporation (ARC) was
organized as a not-for-profit corporation under State of Alaska
law, and its membership included a range of interests in the
region. The ARC was recognized by DoD as the Adak local
redevelopment authority, and continues to act in that capacity.
In carrying out its responsibilities at closing bases, Navy
seeks to achieve a number of goals:
Close bases quickly, but in a manner that will
preserve valuable assets to support rapid reuse and
redevelopment.
Give high priority to local economic development
when disposing of available real and personal property.
Put available property to productive use as
quickly as possible through leases and conveyances to spur
rapid economic recovery and reduce caretaker costs.
Fast-track environmental cleanup by removing
needless delays while protecting human health and the
environment.
Make every reasonable effort to assist the local
redevelopment authority in obtaining the available personal
property needed to implement its redevelopment plan.
Coordinate Federal resources to assist community
economic recovery.
Navy has worked hard to apply these philosophies to the
unique circumstances at Adak. Let me briefly outline what we
have done.
LAND EXCHANGE
Early in the closure process, TAC expressed interest in
exchanging some of its Alaska Native Claims Settlement Act
(ANCSA) real property interests for property at Adak. The DoI
sought opportunities to enhance the wildlife refuge. The
resulting framework is that the Navy would relinquish the
withdrawn lands comprising for former NAF Adak to DoI, who
would then convey approximately 47,150 acres on Adak to TAC in
exchange for TAC relinquishing an equal amount of TAC Native
Land Selections and entitlement under the Alaska Native Claims
Settlement Act. In September 2000, DON, DoI and TAC signed an
Agreement that sets for terms and conditions of an eventual
exchange under which TAC will obtain title to approximately
47,150 acres of the former Adak military reservation, as well
as all of the remaining Navy personal property.
Because Adak is within the wildlife refuge, special
legislation from Congress embodied in S. 1325 and H.R. 4546 is
needed to convey Adak property to TAC, a non-federal party, who
will use it for non-refuge purposes.
This exchange benefits all parties. The property occupied
by the former NAF Adak has well over $1 billion invested in
numerous buildings, improvements and personal property
associated with its former military mission. Thus, TAC benefits
by acquiring all of the developed portions of the island.
Everything is in place to stimulate economic reuse, create jobs
and establish a community on Adak.
Without the exchange, the property would revert to DoI as a
wildlife refuge. However, the developed portion of the base
would present a liability for DoI and compromise its value as a
wildlife habitat. The exchange benefits Interior by providing
it with equivalent wildlife habitat, along with important
conservation safeguards on portions of land to be transferred
to TAC.
The Navy benefits by terminating the land withdrawal of the
largest single portion of BRAC real estate in a manner that
enables the remaining infrastructure to be productively reused
rather than being demolished at significant additional expense
to be suitable for reversion to a wildlife refuge.
U.S. taxpayers benefit by enhancing opportunities for
productive use of the infrastructure constructed and supporting
personal property acquired at taxpayers' expense, while
enhancing the wildlife refuge in Alaska.
ENVIRONMENTAL CLEANUP
In addition to the legislation, completing the conveyance
of Adak property to TAC also requires the Navy to clean up
environmental contamination and certify that we have taken all
remedial action necessary to protect human health and the
environment with respect to any hazardous substances. In
partnership with the State of Alaska Department of
Environmental Conservation (ADEC) and the U.S. Environment
Protection Agency (EPA) we have made great strides toward that
goal. Since early 1996 there has been an active Adak
Restoration Advisory Board, comprised of interested stakeholder
representatives and members of the public, that has been a
primary means of sharing information and obtaining public
comment on environmental cleanup plans. In April 2000, ADEC and
EPA concurred in a Record of Decision that addressed all
chemical and petroleum site issues. All of the chemical site
remedies, and most of the petroleum site remedies are now in
place.
Munitions response at NAF Adak presented a more formidable
challenge. Military actions there during World War II held the
potential for widespread unexploded ordnance and scattered
munitions disposal sites. A project team that includes the
Navy, state and federal environmental regulators, as well as,
the U.S. Fish and Wildlife Service, TAC, and the Aleutian/
Pribilof Islands Association has been addressing unexploded
ordnance issues. Extensive ordnance investigations in the main
developed ``downtown'' core areas were completed in 1977 and
1998. Additional investigations of known or suspected World War
II era range areas and minefield locations have been carried
out since that time. The Navy, with the concurrence of federal
and state environmental regulators, signed a Record of Decision
in December 2001 for all munitions response work on the
property to be transferred to TAC.
I am pleased to report that last month, the Navy issued a
Finding of Suitability to Transfer (FOST) for 32,150 acres of
the 47,150 acres intended for conveyance to TAC. A FOST for the
remaining 15,000 acres intended for conveyance to TAC is
planned by early 2003, when Navy expects to complete ordnance
investigation and clearance in that area.
In addition to the 47,150 acres proposed for conveyance to
TAC, there are approximately 29,650 additional acres in the
Adak military public land withdrawal, of which about 25,500
acres are environmentally suitable for transfer now. Navy
expects to relinquish its public land withdrawal on that
property to U.S. Fish and Wildlife Service at the appropriate
time. Navy is still investigating ordnance issues on the
remaining 4,150 acres, and Navy will retain that property until
it is found to be safe for other uses. Fences and warning signs
are in place to control access.
FACILITATING REUSE
The Navy has worked very closely with ARC and TAC to enable
reuse to move ahead. When the active military mission ended in
March 1997, we contracted with wholly owned subsidiaries of TAC
to protect and maintain the facilities and provide services to
support Navy environmental cleanup activities. This enabled TAC
to become familiar with the facilities and their operation.
When that contract ended in September 2000, the Navy funded a
grant of $3 million to ARC, administered by the Department of
Commerce Economic Development Administration (EDA), to assist
in the transition to local operation of the Adak infrastructure
in support of reuse. The Congress has provided additional
financial support each year.
In June 1988, we entered into a lease with ARC authorizing
them to use or sublease virtually the entire developed core of
the base. That lease has enabled a number of reuse activities.
The Navy and ARC have worked together to ``privatize'' vessel
and aircraft fueling operations, and to commence rental housing
operations. ARC subleased space to Adak Seafoods, which
subsequently became Adak Fisheries. They began fish processing
operations in a waterfront warehouse in early 1999 and continue
in operation today, with an on-island workforce that fluctuates
seasonally between approximately 50 and 100 people. A public
school with grades K through 12 has been operating at Adak
since the fall of 1998. There is also a general store serving
the needs of the on-island population and visiting ship crews.
The vote to incorporate a new City of Adak was held on
April 3, 2001, and affirmed the desire of the Adak community to
become Alaska's western-most City. We are working closely with
officials of the new City of Adak and they are beginning to
take on an important role in this overall transition.
CONCLUSION
We have come a long way. The foundation for success is in
place. The partnerships among the stakeholders is the glue that
holds it all together, and we appreciate the proactive
engagement of the ADEC and Department of Commerce EDA in
working with all the parties to help build solutions to the
many obstacles encountered along the way. There is still work
to do, but the pieces are in place to get there and, most
importantly, there appears to be a shared sense of purpose to
do what is needed to succeed.
Legislation embodied in S. 1325 and H.R. 4546 is the
critical enabler to conveyance and economic reuse of the former
NAF Adak. I urge your support for this legislation in this
session of Congress.
Thank you, Mr. Chairman and members of the Committee. I am
available to respond to any questions you may have.
CHANGES IN EXISTING LAW
In compliance with paragraph 12 of rule XXVI of the
Standing Rules of the Senate, the Committee notes that no
changes in existing law are made by S. 1325 as ordered
reported.