....S. HRG. 113-177
2
OMNIBUS TERRITORIES AND PALAU AGREEMENT
HEARING
BEFORE THE
- COMMITTEE ON
ENERGY AND NATURAL RESOURCES
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
FIRST SESSION
TO
CONSIDER S. 1237, THE OMNIBUS TERRITORIES ACT OF 2013 AND S.
1268, TO APPROVE AN AGREEMENT BETWEEN THE UNITED STATES
AND THE REPUBLIC OF PALAU
JULY 11, 2013
Printed for the use of the
Committee on Energy and Natural Resources
U.S. GOVERNMENT PRINTING OFFICE
86-710 PDF WASHINGTON : 2013
For sale by the Superintendent of Documents, U.S. Government Printing Office
internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800
Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001
....
75
In sum, the American Samoa Citizenship Plebiscite Act raises significant constitu-
tional concerns because it asks the wrong question. Whether American Samoa con-
tinues to remain a part of the United States is a question that should be answered
by the people of American Samoa. Votes in the past have always been to keep Amer-
ican Samoa a part of the United States. So long as it is, the question of citizenship
is determined by the U.S. Constitution.
Note: As a technical matter, Section 19(c) also incorrectly states that "As United -
States Citizens .. . Persons born in American Samoa will no longer be United States
COMMITTEE ON ENERGY AND NATURAL RESOURCES nationals." Under current federal law, all U.S. citizens are also U.S. nationals.13
Sincerely,
RON WYDEN, Oregon, Chairman 9
CHARLES V. ALA'ILIMA, ESQ.,
TIM JOHNSON, South Dakota LISA MURKOWSKI, Alaska - Law Ofice of Charles V. Ala'itima, PLLC
MARY L. IANDRIEU, Louisiana JOHN BARRASSO, Wyoming NEIL WEARE,
MARIA CANTWELL, Washington JAMES E. RISCH, Idaho - President, We the People Project.
BERNARD SANDERS, Vermont MIKE LEE, Utah
DEBBIE STAI$ENOW, Michigan DEAN HELLER, Nevada
MARK UDALL, Colorado JEFF FLAKE, Arizona 0
AL FRANKEN, Minnesot:a TIM SCOM, South Carolina
JOE MANCHIN, III, West Virginia LAMAR ALEXANDER, Tennessee
BRIAN SCHATZ, Hawaii ROB PORTMAN, Ohio
MARTIN HEINRICH, New Mexico JOHN HOEVEN, North Dakota
TAMMY BALDWIN, Wisconsin
JOSHUA SHEINKMAN, Sta/T Director
SAM E. FOWLER, Chief Counsel
KAREN K BILLUPS, Republican Staff Director
PATRICK J. MCCORMICK III, Republican Chief Counsel
138 U.S.C. § 1401.
(II)
....
74
Citizenship Clause enshrined within the Constitution the automatic guarantee that
everyone born within the territorial limits of the United States would be a U.S. cit-
izen, including those born in U.S. territories or the District of Columbia.5
This June, the D.C. District Court set aside the text and history of the Citizenship
Clause to rule that "[t]he Citizenship Clause does not guarantee birthright citizen-
ship to American Samoans."6 In doing so, the District Court relied on controversial
decisions known as the Insular Cases that were decided by a deeply divided Su-
preme Court in the early 19005. First Circuit Judge Juan Torruella has compared
the Insular Cases to Plessy v. Ferguson, criticizing them as establishing a "doctrine CONTENTS
of separate and unequal" status for the more than 4 million Americans living in
U.S. territories.7 While acknowledging "none of the Insular Cases directly addressed
the Citizenship Clause," the District Court; nonetheless applied an overly broad
STATEMENTS
reading of the Insular Cases' outdated and deeply flawed logic to conclude «that citi-
zenship is not guaranteed to people born in unincorporated territories."8. - Page
The District Court's embrace of an expansive reading the Insular Cases doctrine
Bordallo, Hon. Madeleine Z., Delegate to Congress, Guam ................................. 12
to determine the application of constitutional rights in American Samoa today con-
trasts with language from the Supreme Court's 2008 decision in Boumediene v.
Christensen, Hon. Donna M., Delegate to Congress, U.S. Virgin Islands .......... 8
Faleomavaega, Hon. Eni F. H., Delegate to Congress, American Samoa ........... 4
Bush. There, the Supreme Court stated that "[t]he Constitution grants Congress
Kagan, Edgard, Deputy Assistant Secretary of State, Bureau of East Asian
and the President the power to acquire, dispose of, and govern territory, not the
and Pacific Affairs, Department of State 47
power to decide when and where its terms apply."9 Boumediene expressly rejected
Murkowski, Hon. Lisa, U.S. Senator From Alaska 3
the idea that "the political branches have the power to switch the Constitution on
Pierluisi, Hon. Pedro R., Resident Commissioner to Congress, Puerto Rico ...... 20
or off at will," explaining that "[tlhe test for determining the scope of [a constitu-
Sablan, Hon. Gregorio Kilili Camacho, Delegate to Congress, Northern Mar-
tional] provision must not be subject to manipulation by those whose power it is de- iana Islands 17
signed to restrain."10
Singh, Vikram J., Deputy Assistant Secretary of Defense for South and
Addressing the Insular Cases application to current U.S. territories, the Supreme
Southeast Asia, Office of the Secretary of Defense for Policy, Department
Court in Boumediene cited to Justice Brennan's view in an earlier case that
of Defense 44
"[wlhatever the validity of the [Insular Cases] in the particular historical context
Sobeck, Eileen, Acting Assistant Secretary for Insular Areas, Department
in which they were decided, those cases are clearly not authority for questioning the
of the Interior 23
application of [constitutional rights in U.S. territories today]."11 The Court ex- Wyden, Hon. Ron, U.S. Senator From Oregon 1
plained, 'Tilt may well be that over time the ties between the United States and
any of its unincorporated Territories strengthen in ways that are of constitutional APPENDICES
significance."12
History matters. As the findings of Section 19 indicate, the islands of American APPENDIX I
Samoa have been a part of the United States for over 113 years ago-fully half the
existence of the U.S. Constitution. All living persons born in the islands that con- Responses to additional questions 57
stitute the U.S. territory of American Samoa were born after the islands were ceded
by voluntary deed. American Samoans have become an integral part of the fabric APPENDIX II
of America, with American Samoa's sons and daughters serving in the U.S. armed
forces at a higher rate than any other jurisdiction. Additional material submitted for the record 59
In considering the significance of the District Court's ruling in Tuaua, it is impor-
tant to note that the question whether the Citizenship Clause applies in American
Samoa is an open question before the Supreme Court and the D.C. Circuit. On ap-
peal, the D.C. Circuit will have the opportunity to follow the guidance of
Boumediene and place the text and history of the Constitution over dicta from the
Insular Cases.
5 During the debate over the Fourteenth Amendment, one of the chief architects of the Citizen-
ship Clause observed that while "[t]he second section [of the Fourteenth Amendment] refers to
no persons except those in the States of the Union" in apportioning representatives, "the first
section [of the Fourteenth Amendment] refers to persons everywhere, whether in the States or
in the Territories or in the District of Columbia." Cong. Glob, 39th Cong., 1st Sess. 2894 (1866)
(statement of Sen. Trumbull) (emphasis added). Four years after the Fourteenth Amendment ,
was ratified, the Supreme Court in the Slaughterhouse Cases confirmed in dicta that the Citi-
zenship Clause "put[] to rest" the notion that "[t]hose... who had been born and resided always
in the District of Columbia or in the Territories, though within the United States, were not citi-
zens." 83 U.S. 36, 72-73 (1872) (emphasis added). Indeed, at the time the Fourteenth Amend-
ment was ratified, the understanding of the Supreme Court was that "the United States ...
is the name given to our great republic, which is composed of States and territories."
Ikughborough v. Blake, 18 U.S. 317, 319 (1820) (emphasis added).
6 Tuaua v. United States, No. 12-01143, slip op. at 9 (D.D.C. June 26, 2013) (emphasis in origi-
nal)
7 JUAN R. TORRUELLA, THE SUPREME COURT AND PUERTO RICO: THE DOCTRINE
OF SEPARATE AND UNEQUAL (1988).
8Tuaua slip. op. at 10-11, FNll.
9553 U.S. 723,765 (2008) (emphasis added).
lo Id at 765-66.
11 Id. at 759 (citing Torres v. Puerto Rico, 442 U.S. 465, 475-476 (Brennan, J., concurring in
judgment)).
12 Id. 
(III)
....
73
July 11,2013.
Hon. RON WYDEN,
Senator, 221 Dirksen Senate Office Bldg; Washington, DC.
Hon. LISA MURKOWSK[,
Senator, 709 Hart Senate Building, Washington, DC.
DEAR CHAIRMAN WYDEN AND RANKING MEMBER MURKOWSKI, To assist the Com-
mittee in its consideration of the issues presented in its hearing "To consider S.
1237, the Omnibus Territories Act," we write to address the significant constitu-
tional issues raised by Section 19 of S.1237, titled the American Samoa Citizenship
Plebiscite Act.
We represent Leneuoti Tuaua and seven other people born in American Samoa
in the federal case Tuaua v. United States. Our clients are challenging the constitu-
tionality of federal statutes that deny them U.S. citizenship, labeling them instead
with the inferior status of so-called "non-citizen national."1 Like all other Ameri-
cans, they owe permanent allegiance to the United States as U.S. nationals. But
people born in American Samoa are the only Americans who, although U.S. nation-
als, are not reco~ized as citizens. The impact this has had on our clients' lives has
been significant.
Our clients' case asks one simple question: so long as American Samoa is part of
the United States, do people born in American Samoa have an individual right
under the U.S. Constitution to be recognized as citizens? They believe that the Citi-
zenship Clause of the Fourteenth Amendment provides a clear and definitive an-
swer: "All persons born...in the United States, and subject to the jurisdiction
thereof, are citizens of the United States." Our clients' case, however, does not ad-
dress-nor will it answer-any questions about American Samoa's future political
status. Such questions about the territory's political status should be answered by
the people of American Samoa.
The American Samoa Citizenship Plebiscite Act raises significant constitutional
concerns because it asks the wrong question. As the President's Task Force on Puer-
to Rico Status highlighted in its 2011 report, the "core question" facing the people
of U.S. territories is "whether they would like to be part of the United States or
would like to be independent."3 The Task Force's report repeatedly emphasized that
on this question the "will of the people" is paramount. But so long as American
Samoa remains part of the United States, we believe the question of citizenship is
answered by the Constitution, not Congress. The individual right to citizenship
guaranteed by the Fourteenth Amendment, like the individual rights of free speech
or freedom of religion guaranteed by the First Amendment, is simply not something
the Constitution permits to be put up for a vote. That is not how the Constitution
works.
History shows why the Citizenship Clause includes a constitutional guarantee of
U.S. citizenship by birth within the territorial limits of the United States. The Citi-
zenship Clause was ratified shortly after the Civil War, and it was written against
a backdrop of prejudice against newly freed slaves and growing immigrant commu-
nities who lived in both states and territories. The purpose of the Clause was to
take the power away from Congress or any state or territory to use the political
process to deny the citizenship of people born in the United States.4 The Citizenship
Clause was intended to overturn the Supreme Court's infamous pre-Civil War deci-
sion in Dred Scott v. Sanford, which allowed the government to deny citizenship to
people of certain races who were considered inferior. By overturning Dred Scott, the
18 U.S.C.§ 1408(1).
2 For example, lead plaintiff Leneuoti Tuaua is pursuing this litigation because he wants his
children to have opportunities that were denied to him-as a young man he was unable to pur-
sue a law enforcement career in California because the federal government does not recognize
him as a citizen. Another plaintiff living in Seattle lost her job at the DMV because her U.S.
passport says she is not a citizen. A plaintiff who lives in Hawaii is unable to vote in state or
federal elections despite ten years of service as an officer in the U.S. Armed Forces-he is also
denied the right to bear arms. A plaintiff who received two purple hearts in Vietnam and is
80% disabled would face significant obstacles in obtaining an immigrant visa for his foreign na-
tional wife should he have to relocate from American Samoa to Hawaii for medical care. A plain-
tiff who served in the Liberation of Kuwait was unable to vote alongside his fellow soldiers after
returning to the states from their deployment. See, Complaint, 4-10, available at http://
www.equalrightsnow.org/case overview.
3 Report by the President's-Task Force on Puerto Rico's Status ('Tresident's Report") at 30
(March 11, 2011), available at http://www. whitehouse.gov/administration/eop/iga/puerto-rico.
4 As the Reconstruction Framers explained, the Fourteenth Amendment "settles the great
Question of citizenship and removes all doubt as to what persons are or are not citizens of the
Onited States," putting the "question of citizenship... beyond the legislative power.." Cong.
Glob, 39th Cong., 1st Sess. 2890, 2896 (Sen. Howard).
....
72
by government policies, and can be corrected by taking appropriate actions such as
honoring the law that was passed in 2007 to incrementally raise the minimum wage
in the CNMI.
When the vast majority of a population lives below the poverty level, they cannot
afford to stimulate the economy with any purchases other than those needed to sur-
vive. As long as the federal minimum wage is substantially less than a living wage,
there will continue to be an exodus of people from the islands, and the economy will
not improve. An economy built on the backs of indentured servants will not grow. OMNIBUS TERRITORIES AND PALAU
There is no economic basis for proposing two more delays in the scheduled annual AGREEMENT
$.50 minimum wage increases in the CNMI. The tourism sector of the economy in
the CNMI has increased significantly according to the Marianas Visitors Authority,
which reported a boost in tourism, the CNMI's main industry.6 In May 2013 visitor
arrivals were up 16 percent compared to May 2012. In fact, it was reported that
there is currently a shortage of hotel rooms in the CNMI to support the increase THURSDAY, JULY 11, 2013
in visitor arrivals.7 In January 2013, HANMI reported the hotel occupancy rate was
at 91.05 percent, the highest in 15 years. U.S. SENATE,
In his 2013 State of the Union Address, President Barack Obama called on Con-
COMMITTEE ON ENERGY AND NATURAL RESOURCES,
gress to increase the national minimum wage to $9.00, stating, "Working folks
shouldn't have to wait year after year for t~!e minimum wage to go up while CEO Washington, DC.
pay has never been higher." The committee met, pursuant to notice, at 9:40 a.m. in room SD-
At the same time that some members of Congress are pushing to keep the CNMI 366, Dirksen Senate Office Building, Hon. Ron Wyden, chairman,
federal minimum wage at an immoral $5.55 an hour, we see other members heeding
President Obama's message by supporting an increase in the federal minimum presiding.
wage. S. 460, introduced on March 5, 2013 by Senator Tom Harkin, and the com-
panion bill, H.R.1010 introduced by Rep. George Miller on March 6, 2013, both pro- OPENING STATEMENT OF HON. RON WYDEN, U.S. SENATOR
pose an increase of the federal minimum wage. FROM OREGON
S. 460 and H.R. 1010, The Fair Minimum Wage Act of 2013, amend the Fair
Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for em- The CHAIRMAN. The committee will come to order.
ployees to: (1) $8.20 an hour on the first day of the third month after the enactment Today the committee meets to consider S. 1237, the Omnibus
of this Act; (2) $9.15 an hour after one year; (3) $10.10 an hour after two years; Territories Act and S. 1268, a bill to approve the September 10,
and (4) the amount determined by the Secretary of Labor (based on increases in the
Consumer Price Index) after three years, and annually every following year.8 2010, agreement between the United States and the Republic of
It is perplexing that CNMI Delegate Gregorio Sablan who introduced H.R. 2200, Palau.
which proposes to delay the federal minimum wage increase in the CNMI, is also We have with us the delegates from each of the territories, the
one of the 141 cosponsors of H.R. 1010 that proposes to increase the federal min- Resident Commissioner from Puerto Rico and Eileen Sobeck from
imum wage. Likewise, Senator Ron Wyden (D-OR), who sponsored H.R. 2200's com- the Department of the Interior for our first panel on S. 1237.
panion bills, S. 1237 and S. 256, is one of the 30 cosponsors of S. 460 that would
raise the federal minimum wage. Both support delaying a fair wage for the workers Ms. Sobeck will also appear on the second panel along with
in the CNMI who are some of the lowest paid workers on U.S. soil, while both sup- Vikram Singh from the Department of Defense and Edgard Kagan
port raising the minimum wage for other U.S. workers. Why? from the Department of State to discuss the Palau agreement.
It is time to end the disparity between workers who toil on U.S. soil in the CNMI Good morning to all of our witnesses. We welcome you.
and workers who toil on U.S. soil in the U.S. mainland. The vast majority of the
Let me just say a few words about S. 1237, the Omnibus Terri-
workers in the CNMI are disenfranchised, oppressed, and voiceless. Elected officials
in the CNMI and in the U.S. must listen not only to employers and business organi- tories Act. The committee has jurisdiction over matters relating to
zations who stand to benefit by keeping wages artificially low, but to the workers the territories of our country. However because the territories are
-residents and nonresidents-most impacted by the low wages. not represented in the Senate, few legislative proposals dealing
Income inequality in the CNMI prevents sustained economic growth, keeps U.S. with the territories are introduced here.
citizens from applying for low-paying private sector jobs, and holds those working
That's why Senator Murkowski and I have asked Congressman
in the private sector in extreme poverty. The proposed wage delays mean that the
Sablan to round up legislative proposals from the territories and
resident and nonresident workers of the CNMI will not even see a federal minimum -
wage of $7.55 an hour until 2018, five years from now. That is truly unacceptable send them to us. Senator Murkowski and I have introduced those
and unjust. I urge members of Congress to stop any further delays of the scheduled proposals as S. 1237, the Omnibus Territories Act. Congressman,
minimum wage increases in the CNMI.
we thank you for your cooperation with us.
Senator Murkowski and I have introduced the bill by request. As
many of the Senators know introducing a bill by request is a cour-
tesy that Senators usually provide to the Executive branch. How-
ever, it can be extended to others. We're happy to be able to do so.
It also means that Senator Murkowski and I are not endorsing
GThe Saipan Tribune, May visitor arrivals up by 16 percent, says MVA, Press Release, June
18, 2013. the bill or expressing support today for all of its provisions. We
7 The Saipan Tribune, More rooms needed to sustain tourism recovery, by Moneth Deposa, merely offer it for consideration at the request of others, in this
March 01, 2013 case the elected representatives of the various territories.
8 The Library of Congress, Bill Summary & Status 112th Congress (2013-2014) H.R. 1010 CRS
Summary,http://thomas.loc.gov/cgi-bin/bdquery/z?d113:HR01010:@@@D&summ2=m& (1)
....
2 71
The Omnibus Territories Act contains a wide variety of pro- porary structure drastically reduces the effectiveness of the policy and actively dis-
posals. Some have been considered by our committee before. Others courages new or long term investing.
Thank you for your time and your interest in these matters.
are new.
Some are a bit controversial. Others have significant support.
Let me just talk for a minute about two of the proposals. STATEMENT OF WENDY L. DOROMAL, HUMAN RIGHTS ADVOCATE, ON S. 1237
Section 12 of the bill, the Guam War Claims Act has come before
As a labor and human rights advocate, I would like to express my strong objection
the Senate a number of times in different forms. It has been con- to the provision in S. 1237 and in its companion bill, H.R. 2200, that would delay
troversial. It certainly has a high cost. the increase of the federal minimum wage in the U.S. Commonwealth of the North-
Few would deny the extraordinary heroism and steadfast loyalty ern Mariana Islands (CNMI) every other year starting in 2013.
of the citizens of Guam during World War II. Many were subjected SEC. 4. ADJUSTMENT OF SCHEDULED WAGE INCREASES IN THE
to forced labor, tortured, raped and killed by Japanese military COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS.
Section 8103(b)(1)(B) of the U.S. Troop Readiness, Veterans' Care,
forces, often simply because they were Americans. However, as I
Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (as
touched on, the cost of the payment of reparations to the victims amended by section 2 of Public Law 111-244) is amended by striking '2011'
and survivors has made this a bit of a challenge to get the bill and inserting '2011, 2013, and 2015'.
passed.
A separate Senate bill, S. 256, also calls for a delay in the CNMI's $.50 federal
But the Congresswoman is here, Ms. Bordallo. I hope I'm pro- minimum wage increase in 2013 and 2015.
nouncing that right. Again, we welcome her. The Fair Minimum Wage Act of 2007 component of P.L. 110-28 required the
She's tackled the issue by providing a creative way to pay for the CNMI minimum wage to be increased by $.50 an hour each year until it reached
the level of the national minimum wage in 2015. Before P.L. 110-28 became law in
proposal. The Guam War Claims would be paid using Guam tax May 2007 the CNMI minimum wage was a mere $3.05 an hour. Six years later the
dollars that are normally sent to Guam's treasury. So this is a cre- federal minimum wage in the CNMI remains at a shameful $5.55 an hour.
ative offset, certainly. Hopefully this wi11 bring Senators and col- The scheduled 2011 $.50 federal minimum hourly wage hike was delayed by pas-
leagues together with respect to the cost issue. ' sage of H.R. 3940, which became P.L. 111-244. The delay was promoted by the
Saipan Chamber of Commerce and the Hotel Association of the Northern Mariana
One of the new proposals in the bill, section 9, the Temporary Islands (HANMI) and backed by CNMI Delegate Gregorio (Kilili) Sablan.1 Although
Heating and Energy Assistance to the Virgin Islands, a provision they claimed that the weak economy would be further harmed by the scheduled $.50
designed to help those who have been hit hardest by the significant hourly increase, the U.S. Department of Commerce Bureau of Economic Analysis in-
spike in electricity prices on the Islands. When the oil refinery on
dicated that the CNMI economy actually grew 2.3 percent in 2010.2
When members of Congress make decisions involving delaying the scheduled
St. Croix closed last year, the Islands faced something of a double CNMI minimum wage increase, they primarily weigh the opinions of the Chamber
whammy where they were hit with big job losses and a huge in- , of Commerce, the Hotel Association of the Northern Mariana Islands (HANMI) and
crease in the cost of electricity. The economy of the Islands has other business owners who advocate for lower wages to ensure their own higher cor-
been devastated. porate profits. The members routinely ignore the needs and opinions of the 12,000
disenfranchised, legal long-term foreign workers who make up more than 80 percent
Congressman Christensen has been doing a lot of hard work on of the private sector workforce. Although most of the foreign workers have lived and
this. The Governor has. The Departments of Interior and Energy worked legally in the CNMI for 5, 10, 20 or more years, they remain the Northern
and local leaders have all been toiling diligently to address this Mariana Island's voiceless underclass.
The U.S. citizens who work in the private sector deserve a fair wage. An under-
economic disaster. lying purpose of Title VII of P.L. 110-229 was to phase out foreign contract workers
They've been working to install a variety of renewable and tradi- while training U.S. citizens to learn the skills needed to replace foreign workers
tional energy sources and increase efficiency. So a lot of people thus reducing the unemployment among U.S. citizens in the CNMI. Maintaining an
talked about all of the above in terms of energy policy. Congress- unfair minimum wage that promotes poverty and a poor quality of life is not the
woman, I know you really are practicing it.
way to encourage U.S. citizens to work in the private sector. More and more of the
CNMI's residents are leaving the CNMI to move to Guam and the U.S. mainland
It's going to take several years for these measures to provide re- where they have opportunities to make a decent living.
lief. In the meantime, the Congresswoman is proposing that the Resident and nonresident workers in the CNMI struggle to survive. Their meager
Virgin Islands receive a greater share of Low Income Home Energy earnings cannot keep up with the rising costs of commodities and utilities. Many
Assistance Act dollars. She proposes that eligibility be expanded to ~
of the workers must choose between paying rent and healthcare. According to the
2010 Census, over 33 percent of the CNMI population has no health insurance, 85.3
individuals with income up to 300 percent of poverty. These would percent of families with children under 18 years of age live in poverty, and the per
be temporary measures, in effect, to get the Virgin Islands through capita income is a mere $9,6563. As of January 2013 there were 3,518 household
the disaster. We are anxious to hear from the Congresswoman members and 9,522 individual recipients of the federal food stamp program.4 The
CNMI Medicaid client base is about 18,000.5 The poverty in the CNMI is worsened
about her proposal.
One other point, just a few words about S. 1268, to approve the
September 10, 2010, agreement between the United States and 1 The Saipan Tribune, Obama delays CNMI wage hike for 2011, by Haidee V Eugenio, Octo-
ber 2, 2010.
Palau. This agreement certainly has significant strategic value to 2 The U.S Department of Commerce Bureau of Economic Analysis Blog, http://blog. bea.gov/
our country. We're anxious to hear from the Pentagon and the De- ?s=northern+mariana,September 17, 2012
3 United States Census Bureau,http://factfinder2.census.gov/faces/tableservices/jsf/pages/
partment of State on those matters this morning. productview.xhtml?pid=DEC-10_ DPMP MPDP3&prodType=table.
It's hard to place a dollar value on an unsinkable aircraft carrier 4 The Saipan Tribune, Additional $12Mto $24M into CNMI economy, by Haidee V. Eugenio,
April 2, 2013.
in the Pacific, unchallenged authority over a huge swath of the 5 Pacific Islands Report, CNMI Medicaid Program Expects More Clients in 2014: High Pre-
ocean and a steadfast international ally. But we do know the cost, miums Leading toFamilies Dropping Medical Insurance, by Moneth Deposa, April 4, 2013.
....
70 3
ity was built in the early 19605, and we have been there ever since. In fact, this $175 million by the way, of one F-35 fighter jet. So it is hard to
August, StarKist will be celebrating our 50th anniversary manufacturing in the ter- overstate the value and strategic necessity of approving an agree-
ritory. It was American Samoa's prime location in the heart of the most prolific fish-
ing ground in the world that drew processors to the island initially. The advantages ment.
that come with being a U.S. territory also drew processors; specifically, the ability I hope the Administration will continue to work with the com-
to send finished tuna product to the mainland U.S. duty-free. Because of these and mittee to find an acceptable offset for the Palau agreement so that
other factors such as wages, American Samoa offered a favorable cost structure for
many years. America can address an important national security issue.
It was in this environment that the tuna industry thrived, growing to be the is- My friend and colleague, Senator Murkowski, is here. I want to
land's largest source of private sector employment by far. Until the closure of the . let her make whatever statement she chooses.
Chicken of the Sea facility, tuna processing accounted for 80 percent of American
Samoa's private sector employment. It is also important to note that most of the [The prepared statement of Senator Risch follows:]
other private sector employers in American Samoa are dependent on the tuna indus-
PREPARED STATEMENT OF HON. JAMES E. RISCH, U.S. SENATOR FROM IDAHO,
try, as their businesses consist of providing goods and services to us, the fishing ves-
sels that come into port to supply us, and to our employees. StarKist alone employed oN S. 1237
40 percent of the island's private sector workers. StarKist has employed generation I would like to note my strong opposition to Section 7 of S. 1237, as introduced
after generation of American Samoans, and we value the dedication the island's peo- on June 27, 2013 and as considered by the Committee today. That section would
pie have demonstrated to StarKist for decades. We recognize that our success has require the Government of the U.S. Virgin Islands to hold a referendum on whether
in many ways been due to their hard work and commitment.
the Federal government may establish an unelected Chief Financial Officer (CFO)
While these factors have historically combined to attract whole-fish processors to for the Territorial government. The provision then sets out a Rube Goldberg-type
American Samoa, in today's global economy, the fierce foreign competition faced by of process whereby a CFO would be identified and selected. The provision is strongly
U.S.-based processors means that mere proximity to fish and a favorable trade sta- opposed by the Governor of the U.S. Virgin Islands.
tus are no longer enough to make American Samoa competitive. As a former governor, I cannot imagine a more unwieldy and unnecessary intru-
sion into the local self-governance of the Virgin Islands. Apart from the questionable
CHANGES IN THE TUNA PROCESSING BUSINESS
merits of establishing a new bureaucracy to replicate the existing duties of the Ter-
Two Different Business Models ritory's executive branch , I believe the proposal sends the wrong signal that the Ter-
The increasingly global nature of the tuna business has enabled the industry to ritory is incapable of self-governance and that the Federal government must some-
shift operations from one location to another, allowing producers to adjust more eas- how intervene to settle local disputes. Indeed, it would appear to violate the prin-
ily to supply and demand and the changes in input costs and prices. An example ciples of federalism and to be a step backwards, not forward, in the Territory's path ,
of this dynamic is the shift made by my competitors to outsource the most labor to greater self-governance. Certainly no governor of any State of which I am aware
intensive aspects of tuna processing to low-wage countries, and then make final would tolerate federal legislation requiring (or even permitting) the establishment
product and packaging from imported frozen tuna loins. The loin is the light, meaty, of a CFO in their respective States.
erlihle part, of ti.ina: If the people of the Virgin Islands believe that a CFO would be useful or bene-
In a full scale tuna cannery, such as the cannery we operate in American Samoa, ficial, they are certainly free to require the same, through local referendum or local
the manufacturing process starts with a whole fish-known as a "round" fish-and legislation. They do not need Congress to tell them what to do or how to do it.
ends with a consumer-ready product in a can. Upon delivery to our dock, the whole
fish is cleaned, cooked, combined with other ingredients and packaged into cans by STATEMENT OF HON. LISA MURKOWSKI, U.S. SENATOR
our American Samoan workforce. We then ship those cans directly to the U.S. main-
land and distribute throughout the country for sale.
FROM ALASKA
In contrast, the alternate business model adopted by our competitors is the use Senator MURKOWSKI. Thank you, Mr. Chairman. Good morning
of outsourced foreign labor for nearly all of the tuna preparation and then a small
domestic loinery for final product packaging. In their business model, they have to each of you. Thank you for your representation in your respec-
outsourced the most labor intensive aspect of tuna processing to extremely low wage tive regions. We welcome you to the committee here this morning.
countries. In these mostly South Asian factories, workers making as little as sixty Mr. Chairman, I want to thank you for holding the hearing on
cents per hour clean, prepare, and cook the whole tuna fish and transform it into
a tuna loin. That loin is then frozen and exported to the Unites States nearly duty two pieces of legislation that impact the territories and the freely
free. Having removed nearly 80 percent of the labor expense, my competitors then associated states. As you have recognized, this is an area of a com-
take the frozen loin and use minimal U.S. employment to place the product into mittee's jurisdiction. It probably doesn't generate as many head-
cans for consumers. To illustrate the impact, Chicken of the Sea was able to replace lines as some of the other issues that we take up. But nonetheless,
its 2,000 person workforce in American Samoa with fewer than 300 workers in
Georgia. very important to our Nation's economic and clearly, physical, secu-
As you can see, two different business models have emerged in the tuna industry. rity.
One model involves outsourcing the bulk of the labor-intensive work to low-wage So it is an important issue, a series of important issues, that we
countries, using as little U.S. labor as possible to create the finished product and address today.
avoid import duties. The other model-the model we are trying to preserve in Amer-
ican Samoa-uses more U.S. labor to manufacture a can of tuna. The owners of - The first bill, the Omnibus Terntories Act of 2013, 20 sections
loineries in the United States have already maximized their competitive advantage contained within it and really a very wide range of issues, going
by using an outsourced labor approach. everywhere from the minimum wage to HUD programs to fisheries,
Star·Kist applauds your efforts to identify, through this legislation, alternatives for
endorsements and everything in between that may impact the ter-
less expensive energy in the territory-a major cost associated with business there.
We also applaud your efforts to examine the fairness of the application of existing ritories both individually and collectively.
federal cost benefit requirements and local cost sharing requirements for federal As you note, Mr. Chairman, this bill was introduced by request.
economic development assistance. Significant improvements can, and must, be made We have made some changes to the bill compared to what was in-
to American Samoa's infrastructure, ports, and shipping capabilities. Finally, while
troduced over on the House side. I anticipate that we're probably
not addressed in this legislation or within your committee's jurisdiction, we submit
that the existing federal tax-based incentives for businesses operating in American going to see further changes as we move forward with this. I look
Samoa are critical for survival of the territory's economy. However, the existing tem- forward to working with each of the delegates on these matters.
....
4 69
With respect to the second piece of legislation and this is the partments and agencies. This will free up scarce local government resources and
agreement between the United States and Palau. I do thank the allow us to address pressing matters impacting the people of the Vir~in Islands, and
again in this instance I presume to believe I can speak for practically all residents
Administration for transmitting the language to Congress so that of the Vir<n Islands in expressing unhesitating support of this measure.
it could be included in this hearing. I'm not going to go into all the Lastly, i wish to applaud the sponsors of this bill for the inclusion of sections to
details relating to the compact of free association between our two create the Castle Nugent National Historic Site Establishment and to establish the
St. Croix National Heritage Area. The promotion, protection and preservation of Vir-
nations. gin Islands heritage and culture are not simply important as economic resources
But as a result of the very close and strategic and economic ties that contribute to the viability of the tourism industry on which we depend, but
between our countries and our peoples, hundreds of Palauan citi- they are in fact vital to our very identity as a people. Delegate Christensen has
zens serve in all branches of the United States Armed Forces. We fought hard to bring the process to this point, beginning in 2006 with her sponsor-
ship of legislation to fund the feasibility study that found St. Croix to be a suitable
greatly appreciate their willingness to serve in our Nation's mili-
site. I applaud her foresight and tenacity, and offer my full and enthusiastic support
tary. In some cases, giving their lives to defend our freedom. of these measures. I only hope that in the near future, similar studies may be con-
Palau is a steadfast ally of the United States in international fo- ducted with the goal of establishing national heritage areas in my district of St.
rums who support we should be mindful of and grateful for. Palau, Thomas-St. John, as our historical and cultural resources are, in my humble and
admittedly biased opinion, no less worthy of recognition and protection.
along with Israel, votes with the U.S. in the United Nations more I would like to thank Chairman Wyden and the members of this committee for
times than any other member. It's also important to recognize your time and consideration, and I am confident that you will act with the best in-
Palau's leadership in working with the U.S. to resettle 6 ethnic terests of the people of the Virgin Islands as a primary consideration. I, and others
Uighurs, who were detained at the Guantanamo Detention Facility. in the Virgin Islands, look forward to the forging of a new partnership with Con-
gress and the administration in which the territory moves forward to true self-suffi-
Palau was the first country to offer itself as a future home for these
ciency and sustainable economic, social and political development that provides a
detainees. high quality of life for all Virgin Islands residents.
So as we deal with the issue related to the compact, the key Sincerely,
question really is how to pay for it. This has been unresolved since CLARENCE PAYNE, III,
Liaison to Congress.
the agreement was signed back in 2010. I am not aware of any pol- -
icy objections to the agreement but I also acknowledge that, in my
view, we have not yet seen an acceptable offset to the agreement's STATEMENT OF FRANK POGUE, VICE PRESIDENT, STARK[ST CO., ON S. 1237
cost. So I'm hopeful that this morning we will hear from the Ad-
On behalf of StarKist Co., I want to thank Chairman Wyden, Ranking Member
ministration witnesses some politically viable ways to move this Murkowski, and the Members of the Committee for holding this hearing to discuss
very important agreement forward. S. 1237 The Omnibus Territories Act of 2013. I also want to thank Representative
So I look forward to the testimony this morning from those who Eni Faleomavaega for his dedication to American Samoa and his leadership in this
are assembled, both not only on this first panel, a very distin- As you know, American Samoa has suffered a number of serious economic set-
important effort to bring economic stability to American Samoa.
guished panel, but on our second panel as well. backs over the last five years. It is not hyperbole to say that when Chicken of the
Thank you, Mr. Chairman. Sea closed its factory doors and took 2,000 jobs away on September 30,2009, leav-
The CHAIRMAN. Thank you, Senator Murkowski. ing StarKist as the only remaining large employer in American Samoa, it was the
I know we're going to work very closely together on these issues economic equivalent of the earthquake that gave rise to a tsunami.
American Samoa faces a tremendous threat to what remains of its tuna indus-
as we have on all of the matters that have come before us. try-the island's economic engine--due to massive competition from low-wage coun-
Let's go to our witnesses now. tries and diminished incentives for fishing vessels to deliver to American Samoa. It
We all know him as Eni, but certainly the Congressman, the is my hope that your efforts in today's legislation are a beginning to a serious proc-
ess of identifying changes to federal economic development policies necessary to pro-
American Samoa Delegate to Congress, has been doing good work
mole diversification of the economy and growth within its current strengths.
for his communities for quite some time. He is Congressman
Faleomavaega. ABOUT STARKIST
He will be at the witness table with the Honorable Donna M. StarKist is a leading manufacturer, distributor, and marketer of shelf-stable sea-
Christensen, who we know from health care days and appreciate food products in the United States, best known for our tuna products and our be-
her good work. -
loved icon Charlie the Tuna. We are a U.S. corporation headquartered in Pittsburgh,
Pennsylvania, we have more than 1,800 employees in the United States, and we pay
The Honorable Madeleine Bordallo, we welcome her. U.S. taxes. StarKist is also a subsidiary of the Dongwon Group, a leader in the food,
The Honorable Gregorio Sablan of the Northern Mariana Islands beverage and fisheries industries in South Korea. Our plant in Pago Pago, American
Delegate to the Congress. . Samoa is our largest processing facility.
The Honorable Pierluisi, a Resident Commissioner of Puerto Our biggest challenge to manufacturing in American Samoa is a supply chain pro-
file that is no longer competitive on a global basis. Consequently, we continue to
Rico, welcome and Eileen Sobeck.
lose market share to low-cost, foreign-manufactured products that come in the form
We'll make all of your prepared remarks a part of the record in of private label tuna on U.S. store shelves. "Private labels" are the store-brand prod-
their entirety. I know there's always, kind of, a biological compul- ucts you see at your grocery chains. Private label competes mostly on one metric:
sion to just read a statement. We'll make your entire statement in price.
the record in its entirety. STARKIST IN AMERICAN SAMOA
If you'd just like to speak with us for 5 minutes or so that will
Our company's long history in American Samoa provides some insight into why
leave some extra time for questions. the island and its people are important to us, and why we are working hard to stay.
We're also pleased that Senator Risch is here as well. Tuna canneries first arrived in American Samoa in the early 1950s. StarKist's facil-
....
68 5
of its monthly revenues. A similar fate has overtaken the only remaining bookstore Congressman, welcome.
on St. Thomas, which is closing its doors next month.
These businesses are just a few among hundreds of establishments-faced with the STATEMENT OF HON. ENI F. H. FALEOMAVAEGA, DELEGATE
inability to pass on their increased costs to consumers who have ever-decreasing TO CONGRESS, AMERICAN SAMOA
amounts of disposable income-that have closed over the past few years. As the V.I.
Public Services Commission has recently noted, the unsupportable price of elec- Mr. FALEOMAVAEGA. Thank you, Mr. Chairman. Thank you Mem-
tricity is draining the territory's economy of at least $150-200 million dollars which
would otherwise ci rculate in the economy-thus depriving the territory of much need-
ber Murkowski. It's an honor and a pleasure for us to be here this
ed employment, internal investment, and economic opportunities. morning.
Policymakers in the Virgin Islands have long been aware that the crux of our I want to take this opportunity to thank you for holding this
problem in this regard stems from the territory's total dependence on petroleum hearing on S. 1237, the Omnibus Territory's bill. This bipartisan
fuels for electricity production. The last ten years, during which the price of petro-
leum has risen from $32 per barrel in October 2003 to the current price of over $103 legislation is critical in addressing the many issues that residents
and rising, have been catastrophic for residents and businesses in the territory. We . of our U.S. territories have faced for many years. For American
are taking concrete steps to diversify our energy infrastructure, and over the next Samoa this bill would provide the necessary tools for our new Ad-
24 months the territory is on course to replace diesel with much less costly liquefied
ministration to help the territory move forward.
propane gas as the feedstock for electrical generation, and to begin utilization of
solar power for 17% of the territory's electrical needs. The Water and Power Author- Mr. Chairman, I realize that I have a laundry list of about 100
ity has estimated that these developments, apart from various measures to increase issues that I wanted to share with you this morning. So I decided
efficiency and energy conservation, will result in electricity bills that are 30-40% to cut it down to 5, if that's alright with you.
lower than at present. Besides the obvious fact that the resultant electricity prices
I'd, just to say on the general basis. By the way some of your col-
will still be roughly three times the national average, a burning question still re-
mains. How are our seniors and other residents of limited means to survive between leagues are wondering why is it we're making this approach in set-
now and then?
tling some of the issues affecting the territories. In actuality this
The Government of the Virgin Islands has taken its own measures and utilized was the procedure that Congress had set years ago. I remember the
its own resources to augment the funds provided under the LIHEAP program. Thus,
in each of the last four fiscal years, the Legislature of the Virgin Islands has appro-
1970s on a bipartisan basis, especially in the House with the late
priated in excess of $1 million to fund an Energy Crisis Assistance Program for el- Congressman Phil Burton and Lloyd Meeds and Patsy Mink and on
derly citizens and, to a lesser extent, low-income households. In the current fiscal the Republican side our colleagues Pablo DeMarcino and Don Clau-
year for example, $1.5 million of local funds have been appropriated to augment sen. They worked in such a way that in these issues.
the 4147,389 provided to the territory under the LIHEAP program. However, even
in combination with federal LIHEAP funds, the resources have not sufficed to meet The CHAIRMAN. Congressman, the Senators up here on this panel
the need. As such, the Department of Human Services, which administers the local still believe in working just that way.
program, has had to limit its service population to exclusively the elderly and pcr- Mr. FALEOMAVAEGA. OK.
sons with disabilities, leaving other low-income families unaddressed, and it has had
The CHAIRMAN. I appreciate your pointing out this history of bi-
to reduce the maximum bi-monthly benefit by 43% in order to serve the increased
caseload and still ensure that the appropriated funds last through the fiscal year. partisanship .
Both the federal government and the Virgin Islands government share the same Mr. FALEOMAVAEGA. Yes and that really was the spirit. I'd say . .
goals regarding the medium and long term blueprint for eneroy security in the Vir- look, so many of the issues affecting the territories are so munic-
gin Islands, and we are making positive steps--including reducing our reliance on
ipal. This will affect the national framework in terms of some of
fossil fuels and enhancing energy efficiency and conservation-which are admirably
augmented and facilitated by provisions such as the LIHEAP adjustment and the the issues because there may be instances we get lost in the shuffle
Energy Action Plan contained in this Omnibus Territories Act. We must, however, in many instances by oversight and not intentionally in any way.
ask you to go further. It is critical, for our territory's immediate survival, that you So these territories always are caught in that and we try to clean '
provide us with the assistance that our people need in the short term while the nec-
essary changes are being put in place. It will not suffice to say, a few years hence,
up the mess. I shouldn't say really the mess, but the problems that
that the operation was successful but that the patient died. it's created. So there have been several examples where omnibus
I also wish to say a few brief words on Section 7 of this bill, which would allow territories build it.
the people of the Virgin Islands to vote on the creation of a Chief Financial Officer I realize when it comes to committee jurisdictions there's a little
position in the Virgin Islands. This bill, in various forms, has circulated through the
problem with the sensitivities and how we do it. But all of this was
halls of this august body for a number of years now. In the past, officials of the ter-
ritorial government, including members of the Legislature of the Virgin Islands, done on the basis of trust and that our Republican/Democratic col-
have testified before Congress in vociferous opposition to legislation to establish a leagues worked in such a way that these issues are non controver-
Chief Financial Officer. I believe, however, that this present version of the legisla- sial, for the most part. Each issue affects that particular territory.
tion follows a suitable approach. It seeks to accomplish the basic goal of the sponsor,
All we need is just a little twitch and it's settled. But you have
which is to increase accountability and to create some degree of insulation between
financial decision-making and the vagaries of the political process, while respecting - to go through the whole legislative process. Sometimes you never
the inherent right of the people of the Virgin Islands to self-determination. Unlike get heard.
some previous versions of this measure, this bill calls for an expression of the peo- So I want to thank you, Mr. Chairman and Miss Murkowski, for
pie's will through a referendum, and it also provides that the CFO will be selected
being able to work this procedure again as a possible way to solve
and appointed by local persons, rather than by the Department of the Interior or
some other arm of the federal government. As such, I enthusiastically support the so many issues. As you notice we all have different issues affecting
enactment of this Section. the different territories because we're not all from the same tribe.
A few words are also in order regarding the increased waiver of local matching Our political relationships with the United States are also quite
fund requirements for federal grants to the territories. The increase from $200,000 different.
to $500,000, reflecting real dollar figures that are equivalent to the value of the
waiver when originally enacted in the early 1980's is of tremendous importance. Of So I want to say that I really want to thank you for this initia-
even greater importance, however, is the extension of the waiver to all federal de- tive. Then hopefully that we can go through with this procedure
....
6 67
and see what we can agree upon and move forward so it will be LEGISLATURE OF THE VIRGIN ISLANDS,
CAPITOL BUILDING,
a great help to the territories. St. Thomas, VI, July 11, 2013.
We've got a problem with the cost ratio studies. So in many in- Salutatory greetings to the Honorable Chairman Ron Wyden, members of the Sen-
stances I have a ten thousand foot runway airport but no airport ate Committee on Energy and Natural Resources, and other persons in physical or
tower because the FAA said you don't qualify for the cost ratio, virtual attendance. My name is Clarence Payne, and I am an elected member of the
30th Legislature of the Virgin Islands. I am the bodys Liaison to the U.S. Congress
whatever formula that they have. I say, how am I going to run an
and the Vice-Chairman of the Committee on Energy and Environmental Protection.
airport that doesn't have a tower? Yet we built a ten thousand foot However, I wish to make clear from the outset that I am not speaking on behalf
runway that 7478 can't fly on. - of the 3Oth Legislature, and that the positions presented here are my own.
I think that we should actually there at the Asiana airport. I Due to the financial constraints facing the territory I have chosen not to provide
testimony in person. However, I am thankful for this opportunity to submit written
mean, Asiana Airlines there at San Francisco is an example when
remarks on S. 1237, the Omnibus Territories Act, inasmuch as the provisions of this
you're talking about safety and hazards as far as the air transpor- - legislation address issues of critical importance to the Virgin Islands. Although the
tation. We need this cost study ratio. various sections of the bill deal with a wide array of topics that directly address the
The other is it also affects the construction of our harbors as I'm territory, I will focus, for the most part, on the critical issues of energy assistance
for lowincome households and the creation of a Chief Fiscal Officer in the Govern-
sure that all of territories are affected in that regard. ment of the Virgin Islands.
We also have a problem of local matching. For 30 years we've I must begin by stating from the outset that I cannot, and in this instance I be-
been struck with the fact that you can only go up to $200,000. The lieve I represent the viewpoint of most if not all of my colleagues of the 30th Legis-
cost of living, the increases in inflation and all of this has changed. lature, be more supportive of the Omnibus Territories Act in terms of increasing the
allocation of funds and adjusting the eligibility requirements for the operation of
Yet Congress still has not given us any assistance in that regard. LIHEAP in the Virgin Islands. As an elected official who stays close to the pulse
The GAO study, we have 18 minimum wages, Mr. Chairman. For of the grassroots, I can assure you that it is of critical importance to the survival
our little territory, we have 18 minimum wages. How in the world and well-being of thousands of households in the territory. As such, I not only ap-
plaud the sponsors of this measure, but on behalf of all residents of the Virgin Is-
did we create an idiotic system like this? Thanks to our partners lands I urge you to go further in addressing the territory's energy crisis by intro-
in the Federal Government and the Department of Labor we ended ducing and passing a Senate version of H.R. 92, The Virgin Islands Energy Crisis
up with 18 minimum wages. Relief Act, proposed by our Delegate to Congress, the Honorable Donna Christensen.
This measure would appropriate resources to help lower the consumer cost of elec-
We'd like to have a GAO study to see if we can have just maybe
tricity over the next two years and thus help ensure that the Virgin Islands econ-
one minimum wage so that everybody will be on the same even omy survives until the ongoing improvements to our energy infrastructure are in
playing field. That's another problem we have. place. Recently, the 30th Legislature of the Virgin Islands passed, by unanimous
The CHAIRMAN. Way too logical, Congressman. vote, Resolution No. 1794, urging the U.S. Congress to enact this important legisla-
tion introduced by our Delegate. A copy has been enclosed along with this presen-
Mr. FALEOMAVAEGA. Another question that we've just had. A tation.
problem with some of our residents have decided to file a lawsuit Although the amounts involved are less than a drop in the bucket compared to
demanding that our people should become automatically U.S. citi- the overall federal budget, the increase in Low Income Home Energy Assistance
zens under the 14th Amendment Citizenship clause. They lost the
Program (LIHEAP) funding and the adjustment in program eligibility for Virgin Is-
lands residents are literally matters of survival for many Virgin Islanders and for
case.
the economy of the territory. It is by now no secret, as many officials from the Vir-
But what I wanted to present here was to offer as a plebiscite gin Islands have previously testified before Congress on energy issues, that elec-
so that our people could decide once and for ever this has been an tricity prices in the Virgin Islands, at over 50¢ per kilowatt hour, are the highest
of any jurisdiction under the American flag and are nearly 5 times higher than the
issue that has been ongoing for over 100 years simply because of stateside average of 11¢/kwh. As a result, the average monthly electricity bill Virgin
our concerns with our traditional ways that it may have an impact Islands households is $254-an amount unimaginable in any other U.S. jurisdiction.
on the culture and all of that. I'm offering this idea of maybe a Further, as Representative Sanford Price noted in his questioning of USDA offi-
plebiscite. Leave it to the people and not to the courts to decide cials at an April 24th hearing of the House Committee on Appropriations-Sub-
committee on Agriculture, Rural Development, Food and Drug Administration, and
whether we should become U.S. citizens. Related Agencies; the high price of electricity is particularly hard on the residents
Mr. Chairman, I could go on for the next half day to give other of the Virgin Islands inasmuch as we are an economically distressed territory. The
details. But I want to thank you. I'm sure my colleagues will be - per capita income in the Virgin Islands is roughly half of the mainland average and
two-thirds that of the nation's least wealthy state, and the unemployment rate in
just as good in giving their concerns on this. the territory is 13.2% compared to the national rate of 7.6%. At the same time, how-
Thank you. ever, the cost of living in the territory has been estimated to be as much as 150%
[The prepared statement of Delegate Faleomavaega follows:] - of the national average. What this means in human terms is that for many house-
holds, and particularly for our elderly residents on fixed incomes, each month pre-
sents a harrowing choice between paying for electricity and buying medicine, food
PREPARED STATEMENT 0.F HON. ENI F. H. F~LEOMAVAEGA, DELEGATE TO CONGRESS, or other necessities. For a growing number of households, that choice has already
AMERICAN SAMOA, ON S. 1327 been made for them, and we are seeing more and more households that have been
living without electricity for weeks and months.
Chairman Wyden & Ranking Member Murkowski:
Businesses hardly fare better in the struggle to cope with electricity prices in the
I want to take this opportunity to thank you for holding this hearing on S. 1237, territory. One restaurant on the island of St. Croix regularly posts its monthly elec-
the Omnibus Territories Act. This bipartisan legislation is critical in addressing the tric bill in the foyer so that its clients can realize the link between the increase in
many issues that residents of our U.S. territories have faced for many years. For prices on the menu and the establishment's $24,000 monthly electric bill. The only
American Samoa, S. 1237 will provide the necessary tools for Governor Lolo and his remaining dairy operation in the territory closed its doors a few months ago, citing
new administration to help the Territory move forward. its inability to keep up with a monthly electric bill that sometimes equaled a third
....
66 7
crease the likelihood that Interior can provide reliable information on compact im- SECTION 15. BENEFIT TO COST RATIO STUDY FOR PROJECTS IN AMERICAN SAMOA
pacts to Congress. Included for American Samoa is a section requesting the Comptroller of the
This concludes my statement for the record.
United States to study and provide a report on the benefit-to-cost ratio formula used
to determine funding for federal projects in American Samoa. This comprehensive
study is necessary to address the discrepancies that American Samoa faces com-
LEGISLATURE OF THE VIRGIN ISLANDS, pared to other Territories. Due to our remote location, small population and single-
ENERGY AND ENVIRONMENTAL PROTECTION COMMITTEE , industry economy , it is very difficult for American Samoa to meet any threshold for
St. Thomas, VI, July 9, 2013. federal projects , especially federal agencies and departments that rely solely on the
Hon. RON WYDEN, benefit-to-ratio formula.
Chairman, Committee on Energy and Natural Resources, U. S. Senate, 221 Dirksen Because American Samoa does not meet the criteria, which I believe is discrimi-
Senate Office Building, Washington, DC. natory, American Samoa is the only U .S . territory without an airport tower even
though American Samoa is an international destination and has one of the longest
DEAR CHAIRMAN WYDEN: The Honorable Donna M. Christensen, U.S. Virgin Is- runways in the U.S. While making tourism a priority, it would be difficult for the
lands Delegate to Congress, informed Virgin Islanders of your introduction of an - local government to attract foreign carriers provided the airlines would not be com-
Omnibus Territories Bill. I write in support of this legislation, particularly your ini- fortable with their planes landing at an international airport that does not have a
tiative to address the energy needs of insular areas including the U.S. Virgin Is- physical control tower. Given the recent Asiana crash landing at San Francisco
lands. In my capacity as Chairman of the 30th Legislature of the Virgin Islands International Airport last week, a responsive and communicating physical presence
Committee on Energy and Environmental Protection ("Committee"), I most respect- is also essential to our residents.
fully submit this letter of support to be referenced during the July 11, 2013 hearing The benefit-to-cost ratio also affects our harbors. For now, we are unable to qual-
on Senate Bill 1237 (S. 1237). ify for federal support for additional harbors but, with the increase in traffic in the
I am aware that S. 1237 is the companion Bill to H.R. 2200, introduced in May Pago Pago harbor, building and creating harbors on other parts of Tutuila Island
by Delegate Gregorio Sablan of the Northern Mariana Islands and co-sponsored by will improve and expand inter-island commerce and build-up needed infrastructure.
Delegate Christensen and other territorial delegates. The Virgin Islands is in crit- Having a GAO study to determine alternative methods to the benefit-to-cost ratio
ical need of the energy action plan the legislation requires of the Energy Develop- will help Congress better understand and provide for one of our most vulnerable
ment in Island Nations (EDIN) Task Force, established by the Secretary of the Inte- communities.
rior. Presently, we are totally reliant on fossil fuel which we burn at a rate of over
SECTION 16. WAIVER OF LOCAL MATCHING REQUIREMENTS
12,000 BTUs per kilowatt-hour. With modern equipment, this could be reduced well
below 9,000 BTUs per kilowatt-hour. I am in strong support of waiving local matching requirements for non-competi-
Some action has been taken locally. Act No. 7075, codified as Title 12, Virgin Is- tive grants received by our U.S. territories. Currently, federal departments and
lands Code, Chapter 23, was enacted to establish a benchmark for reliance on re- agencies that provide grant funding to the Territories are able to waive local match-
newable energy technologies by Year 2025. Working with the Virgin Islands Water ing requirements. Congress intended to waive such requirements in order to help
and Power Authority and the Virgin Islands Energy Office, my Committee has held support the local governments with improving infrastructure and programs. The
current amount waived of $200,000 has not changed since 1983 when the Congress
hearings to discuss energy infrastructure and costs, as well as to explore energy
decided to increase it from $100,000 to $200,000.
generation options.
It is very unfortunate that the amount waived has not been increased even with
On behalf of the Committee, we realize federal resources are needed to help us
inflation and the higher cost-of-living in the U.S. Thirty years later, our U.S. terri-
develop and implement a plan to reduce the Territory's reliance and expenditures
tories continue to struggle to provide for their residents given the global recession
on fossil fuel. We stand ready to work with the Department of Interior to reduce
that affected all of us within the past 10 years. With the current push for reduction
energy costs and improve energy efficiency for the benefit of residents and busi-
in federal spending, it will make it even far more difficult for our Territorial govern-
nesses in the Virgin Islands. We are supportive of S. 1237 proposed expansion of
ments to provide for their residents.
funding for the Low Income Home Energy Assistance Program (LIHEAP).
I look forward to the success of this measure. SECTION 17. FISHERY ENDORSEMENTS
Respectfully,
SENATOR CRAIG W. BARSHINGER, While the language for this section may need to be revised, the intent of the lan-
Chairman. guage is to restore fishery endorsements to U.S. tuna boats that are 100% U.S.
built, 100% U.S. owned, and that offload the majority of their fish in American
Samoa.
We have some tuna boats that meet the above criteria but which have lost their
LEAGUE OF WOMEN VOTERS, fishery endorsement because they were repaired in a foreign shipyard meaning
St. Thomas, VI, July 10, 2013. these boats are no longer permitted to fish in the U .S . EEZs in the South Pacific
Hon. DONNA M. CHRISTENSEN, Tuna Treaty Area. This language corrects this problem and allows these vessels to
fish where all other 100% U.S. built tuna boats are allowed to fish.
Delegate, U.S. Virgin Islands, U.S. House of Representatives, Washington, DC.
This fix is critical to our economy because these boats supply the majority of their
DEAR DELEGATE CHRISTENSEN: The League of Women Voters of the Virgin islands fish to American Samoa's canneries and, as this Committee knows, American Sa-
lends its support to the Omnibus Territorial Bill, S. 1237, particularly to those por-
moa's economy is a single-industry economy which is almost entirely dependent on
tions of the Bill that relate to the Virgin Islands. This bill, introduced by Sen. Ron the U.S. fishing and processing industry.
Wyden, D-OR, Chair of the Committee on Energy and Natural Resources, will be I also want to add that this legislative fix does not affect Hawaii waters or waters
of significant assistance to the U.S. Territories as they grapple with global fiscal in the mainland U.S. The waters related to this language are restricted to U.S.
issues that have larger than usual impact on insular economies when compared EEZs within the South Pacific Tuna Treaty Area.
with impact at the national level. For this reason, LWV-VI is in favor of the passage I might also add that the original law which required that U.S. boats to be re-
of this bill, especially those provisions that relate to the U.S. Virgin Islands. paired in U.S. shipyards if they want to retain their fishery endorsement has been
We thank you for your contributions to the development and passage of this im- in force since 1956 to protect the U.S. steel industry. I believe the law is somewhat
portant piece of legislation for the U.S. Territories.
antiquated.
Sincerely,
GWEN-MARIE MooLENAAR, PH.D., LLD, SECTION 18. EFFECTS OF MINIMUM WAGE DIFFERENTIALS IN AMERICAN SAMOA
President, LWV-VI. The Fair Labor Standards Act of 1938 was amended in 1956 to exempt the tuna
industry from paying workers in American Samoa in accordance with federal min-
....
8 65
imum wage laws. Consequently, Special Industry Committees were established to pansion of facilities, agencies understated compact migrant impact by omitting
determine wage rates in American Samoa. these costs.19
From then to now, American Samoa to date has 16 different wage rates based on • Per person costs.-A number of local government agencies used an average per-
industry classification including retailing, tour and travel services, fish canning and person service cost for the jurisdiction rather than specific costs associated with
processing, publishing, private hospitals, government employees, etc., although the providing services to compact migrants. For example, one jurisdiction based the
original intent of the law was for wages among industry classifications to mesh into cost of providing health care services to compact migrants on the number of mi-
one. grants served out of the total patient load instead of totaling each patient's spe-
I believe the time has come for us to set this matter right because I feel it is dis- cific costs. Using the average cost may either overstate or understate the true
criminatory to pay some minimum wage workers less just because they work in the cost of service provision. 20
hotel industry, for example, versus the tuna industry. I believe anyone in American . Documentation Adequacy
Samoa should have access to a set minimum wage rate because the cost of living
A number of local government agencies did not disclose their methodology for de-
is the same for all workers across industry sectors.
veloping impact costs, including any assumptions, definitions, and other key ele-
A GAO report on the effects of minimum wage differentials in American Samoa
ments, which makes it difficult to evaluate reported costs. Furthermore, some agen-
will help us determine how we can best proceed to make the necessary corrections
cy methodologies vary among affected jurisdictions.
for the benefit of our workers.
Comprehensiueness
SECTION 19. AMERICAN SAMOA CITIZENSHIP PLEBISCITE ACT
For those years when the affected jurisdictions submitted impact reports to Inte-
The citizenship plebiscite provision in the Senate Territorial bill will provide for rior, not all local government agencies in the affected jurisdictions included compact
a federally authorized plebiscite in American Samoa on the question of citizenship. impact costs for those years. For example, Hawaii did not provide estimated costs
The U.S. District Court for the District of Columbia reaffirmed just last month in to Interior in 2005 and 2006, although it included partial costs incurred in those
the case of Tuaua v. U.S. that Congress has the plenary power to grant citizenship years in its 2007 and 2008 reports. Without comprehensive data in each year, the
to persons living in the U.S. territories. The plaintiffs in Tuaua argued that U.S. compact impact reports could understate total costs. In addition, compact impact re-
porting has not been consistent across affected jurisdictions. For example, Guam
citizenship should automatically apply to anyone born in American Samoa.
The decision to become U.S. citizens should be decided by the people of American and the CNMI included the cost of providing police services, while Hawaii did not.
Samoa by an election. Once the decision is made by a majority of American Samoan Existing Compact Impact Reporting Guidelines Haue Gaps and Generally Are Not
voters to become citizens , I will work with my colleagues in Congress to draft legis- Used
lation to provide citizenship to persons born in American Samoa. Guidelines that Interior developed in 1994 for compact impact reporting do not
American Samoans have been struggling with the question of citizenship for over adequately address certain concepts key to reliable estimates of impact costs. Devel-
70 years, and the time has come for the people to decide whether they want to be- oped in response to a 1993 recommendation by the Interior Inspector General,21 the
come U.S. citizens. If we choose to do nothing, outside forces will decide our future
guidelines suggest that impact costs in Guam and the CNMI should, among other
for us, as is the case in Tuaua. concepts, (1) exclude FAS citizens who were present prior to the compacts, (2) speci-
The decision for American Samoans to become U.S. citizens has been complicated fy omitted federal program costs, and (3) be developed using appropriate methodolo-
because of concerns of the impact of citizenship on our traditional way of life. How- gies. However, the 1994 guidelines do not address certain concepts, such as calcu-
ever, history has shown examples of other U.S. territories that have preserved their
lating revenue received from providing services to compact migrants, including cap-
traditional culture and still receive citizenship by an act of Congress. ital costs, and ensuring that data are reliable and reporting is consistent.
I am hopeful Congress will enact this important provision to allow the American Several Hawaii and CNMI officials from the reporting local government agencies
Samoan people to decide whether they want to become U.S. citizens. we met with, as well as Interior officials, were not aware of the 1994 guidelines and
had not used them. Officials at the Guam Bureau of Statistics and Plans, which pos-
CONCLUSION
sessed the guidelines, said that the bureau attempts to adhere to them when pre-
Chairman Wyden and Ranking Member Murkowski, I want to thank you again paring compact impact cost estimates. However, we found some cases where the bu-
for holding this hearing and for allowing me to testify before the distinguished com- reau and other Guam agencies did not follow the guidelines.
mittee. I look forward to answering any questions you or members of the Committee In order to strengthen Interior's ability to collect, evaluate, and submit reliable
may have. information to Congress on compact impact, we recommended in our November 2011
report that Interior disseminate guidelines to the affected jurisdictions on producing
The CHAIRMAN. Congressman, thank you for an excellent state- reliable impact estimates, and call for the affected jurisdictions to apply these guide-
ment and particularly your emphasis on bipartisanship. More than lines when developing compact impact reports. Interior agreed with our rec- .
ommendation. In March 2012, Interior convened a meeting of the Presidents of the
anything that's what the 3 of us have tried to do in this committee
FAS and governors and senior officials from affected jurisdictions to collaboratively
because without it we don't get anything done. develop strategies to address policy issues concerning the compacts. At the meeting,
Mr. FALEOMAVAEGA. Thank you, Mr. Chairman. Interior stated that it would work directly with the affected jurisdictions regarding
The CHAIRMAN. Thank you for your thoughts on this. the feasibility of developing uniform reporting guidelines, with Guam and Hawaii
- having leadership roles in the effort. As of June 2013, Interior had not prepared any
Congresswoman, welcome.
new guidance. We continue to believe that providing more rigorous guidelines to the
affected jurisdictions and promoting their use for compact impact reports would in-
STATEMENT OF HON. DONNA M. CHRISTENSEN, DELEGATE TO
CONGRESS, U.S. VIRGIN ISLANDS 19 In schools, the number of additional compact migrant students will likely have led to in-
creased capital costs such as additional school space. According to school district data for the
Ms. CHRISTENSEN. Thank you. 2010-11 school year, in affected jurisdictions, migrants made up 21 percent of the student popu-
Good morning, Chairman Wyden and Ranking Member Mur- lation in Guam, 12 percent in the CNMI, and 3 percent in Hawaii.
2OA further refinement is to consider the incremental cost of providing service to a compact
kowski, members of the committee. I deeply appreciate the effort migrant. If an agency has unused service capacity, the cost oi serving an additional person
and time Chairman Wyden, Ranking Member Murkowski and your would be less than the agency's average service cost. However, if an agency is operating at ca-
pacity, serving compact migrants might require an expansion in agency operations, causing the
staff put into making both the Omnibus Territories bill and this cost of serving compact migrants to exceed the average service cost. For a discussion of these
hearing a reality. I'm very pleased that S. 1237 includes 5 provi- cost issues, see GAO, Illegal Alien Schoolchildren: Issues in Estimating State-by-State Costs,
sions that originated in bills I introduced in this and previous Con- 21 U.S. Department of the Interior Office of Inspector General, Audit Report: Impact of the
GAO-04-733 (Washington, D.C.: June 21, 2004).
gresses. Compact of Free Association on the Government of Guam, Report No. 93-I-1195 (1993).
....
64 9
Sections 6 and 9 would address a crisis in the cost of electricity
Table 1. Affecled Jurisdictions' Reported Compact impa51, by Sector. 2004·2010 facing my constituents. Our current average cost of 50.8 cents for
secto, Guam Hawaii CNMI Total residential and 54.8 cents per kilowatt for commercial customers
Educational services 320:,080,392 5291,063,024 525.426,059 $517,569,475 threatens Virgin Island's families and adversely impacts businesses
Health services $85.374.466 5237,888,693 $10.700.277 SS,6365* causing closures, downsizing and job losses.
Public safety se,vir:m. $55.591.983 $7,641,537 $17.862,038 $81,065,558 Section 6 seeks long term sustainable solutions for the problem
Social sen,ices $4,532,•131 192,159,026 $1.527,730 $98,219,167 of high energy costs and cost of fuels for all of the insular areas.
Total 5326.549,292 5828.752,280 *55.516,104 $1.010.817.676 Section 9 would provide more immediate short term relief to Vir-
S).irce~ GAO *1195 $ m 4.5,V! p•itilic!k·ru Cort.. 0·1*~rt r,frn, . 70...p,Cll gin Islanders over the next 18 months while the local public utility
Note: 'The retorted cooto ore in nominal dollars. unedjugtcd Mr Inflation. believes they will be able to reduce the cost of electricity by 30 per-
cent by that time.
Compact Impact Estimates Haue a Number of Weaknesses
Section 10 would establish the Castle Nugent National Historical
We identified a number of weaknesses related to accuracy, adequacy of docu-
mentation, and comprehensiveness in affected jurisdictions' reporting of compact im- Site. This continues an effort I began in 2006 to continue the great
pacts to Interior from 2004 through 2010.17 Examples of such weaknesses include precedent set by our forefathers when Yellowstone became the first
the following. national park. It would become the fourth National Park Service
Accuracy unit on St. Croix and provide an excellent opportunity to preserve
• Definition of compact migrants.-For several impact reports that we examined, a very special and unique landscape for the people of St. Croix and
the reporting local government agencies, when calculating service costs, did not visitors to the Islands for generations to come.
define compact migrants according to the criteria in the amended compacts ena- The bill calls for preservation of 29 hundred acres which include
bling legislation. For instance, some agencies defined and counted compact mi-
a Caribbean dry forest, pristine coastal barrier coral reef system
grants using the proxy measures of ethnicity, language, or citizenship rather
than the definition in the amended compacts' enabling legislation. Using eth- and pre-Columbian and post-European settlements. The property
nicity or language as a proxy measure could lead to overstating costs, since nei- also has a long agricultural history dating back to the 1730s.
ther measure would exclude individuals who came to the jurisdiction prior to Section 11 would establish a St. Croix National Heritage Area.
the compact, while using citizenship as a proxy measure could lead to under- The St. Croix National Heritage Area will play an important role
stating costs, since it would exclude U.S.-born children of compact migrants.
• Federal funding.-Guam, Hawaii, and the CNMI, among other U.S. states and in the revitalization of St. Croix where we lost the HOVENSA re-
territories, receive federal funding for programs that compact migrants use; finery and its towns and neighborhoods. It will be a key part of
however, not all compact impact reports accounted for this stream of funding strategic economic development for the entire territory. ,
and included costs in compact impact estimates for programs that federal fund-
It has been a top priority of mine for over 10 years. I am there-
ing had partially addressed. To the extent that federal revenue for programs in
affected jurisdictions is based on population counts or data on usage, the pres- fore hopeful and encouraged that S. 1237 could be the catalyst to
ence of, and use of services by, compact migrants lead to federal offsets. For ex- finally make it a reality.
ample, from 2004 to 2008, Hawaii developed its education impact costs by calcu- Last, but not least in the bill it includes my legislation, H.R. 85,
lating a per-pupil expenditure multiplied by the number of compact migrant to establish a Chief Financial Officer. I first introduced this legisla-
students enrolled each school year. However, federal funds received through tion to create a Chief Financial Officer for my district, the U.S. Vir-
several programs are included in these annual expenditures. If the federal
funds component of per-pupil expenditures were subtracted from Hawaii's edu- gin Islands in 2003 at a time when because of lack of accountability
cation impact reporting, as well as a correction made to eliminate a data error the Federal Government was either taking control of Federal funds
that double-counted Marshallese students, it would reduce the total cost of serv- or placing them under a third party judiciary. The then Governor
ices to compact migrants by approximately $61 million for 2004 through 2008
was warning of layoffs, payless paydays and reduced services.
from $229 to $168 million.18
• Revenue.-Multiple local government agencies that receive fees as a result of The bill to create the Chief Financial Officer was my response.
providing services to compact migrants did not consider fees in their compact In recent years we've experienced layoffs, salary cuts and reduced
impact reports. Any exclusion of revenue may cause an overstatement of the services, ongoing budget shortfalls and austerity measures. So I
total impact reported. Compact migrants also participate in local economies feel it's still needed.
through their participation in the labor force, payment of taxes, consumption of -
local goods and services, and receipt of remittances. Previous compact migrant The bill was revised in the 111th Congress so that the CFO
surveys estimated compact migrants' participation in the labor force, but exist- would now simply certify the revenue of the territory mirroring
ing data on other compact migrant contributions such as tax revenues, local that of the then work of the CFO in the District of Columbia. I ex-
consumption, or remittances are not available or sufficiently reliable to quantify pect it to pass the House for the fifth time later this month.
their effects.
It won't solve the fiscal problems we are facing. But it will pave
• Capital costs.-Many local government agencies did not include capital costs in
their impact reporting. Capital costs entail, for example, providing additional the way for us working together to resolve them as we all will trust
classrooms to accommodate an increase in students or constructing additional the numbers and be clear on where we are financially. If the best
health care facilities. In cases where compact migration has resulted in the ex- that I can achieve is a referendum, I'm willing to accept that and
let the people voice their will. I can see no reason why anyone
17 For a discussion of recommended cost estimation practices, see GAO-09-3SP. For federal would object to that or to the establishment of better accountability
cost estimation guidelines, see OMB Circular No. A-94.
18The Hawaii Department of Education excluded federal funds from its costs reported to Inte- and transparency in the finances of our government or any govern-
rior in August 2011. ment.
....
10 63
In response to one point of opposition I do not see how this bill Hawaii increased during the same period from an estimated 7,297 to 12,215 and
could be considered an imposition of the will of the Congress on represented approximately 1 percent of Hawaii's total population in 2008.
An analysis of 2010 decennial census race data also shows growth in the popu-
local authority. It is legislation introduced by the representative of
lation of FAS-related persons throughout the United States, with the U.S. popu-
the people of the Virgin Islands. Further there are many times that lation of FAS-related persons more than tripling from 17,380 in 2000 to 55,286 in
Congress has been and will continue to be called on to act on behalf 2010.11
of the Virgin Islands because we're still governed by an act of Con- Guam and Hawaii Report Rising Compact Costs, Primarily for Education and
gress , the Revised Organic Act of 1954. Health
In closing I would request a consideration of adding two more of . For 2004 through 2010, the affected jurisdictions' reports to Interior show more
my bills as S. 1237 moves forward. than $1 billion in costs for services related to compact migrants.12 During this pe-
The first bill is H.R. 374 which seeks to create an innovative riod, Guam's annual reported costs increased by nearly 111 percent, and Hawaii's
pilot program to leverage private pension assets to raise revenues by approximately 108 percent. The CNMI's reported annual costs decreased by ap-
proximately 53 percent, reflecting the decline in the CNMI compact migrant popu-
for both the Federal Treasury and investment in the Virgin Is-
lation. During the same period, the amended compacts' enabling legislation provided
lands. It would creatively address the chronic underfunding of in- $210 million in impact grants-approximately $102 million to Guam, $75 million to
frastructure needs in the Virgin Islands to a dedicated source of Hawaii, and $33 million to the CNMI.13 Figure 3 shows compact impact costs re-
revenue and it would reduce our unemployment. We think it is ported by the affected jurisdictions for 1996 through 2010.14
likely to raise approximately $500 million a year for the Federal The affected jurisdictions reported impact costs for education, health, public safe-
ty, and social services. Education accounted for the largest share of reported ex-
Treasury. penses in all three jurisdictions, and health care costs accounted for the second-larg-
The second bill, H.R. 79, would tie the FMAP for Puerto Rico, the
est share overall (see table 1). Several officials in Guam and Hawaii cited compact
Virgin Islands, Guam, the Northern Mariana Islands and American migrants' limited eligibility for a number of federal programs, particularly Medicaid,
Samoa to the highest FMAP applicable to any of the 50 States con- as a key contributor to the cost of compact migration borne by the affected jurisdic-
sistent with our average income levels. The language was passed tions.15 While their parents may not be eligible for some programs, U.S.-born chil-
in the House version of the Affordable Care Act and it has no budg- dren of compact migrants are eligible as citizens for the benefits available to them
et impact. as U.S. citizens.16
So I'd like to thank you once again, Chairman Wyden and Rank-
ing Member Murkowski for scheduling this hearing today and for FAS races and only that race (e.g., Pohnpeian, Chuukese, Marshallese, Palauan) in the 2010
11 We use "IfAS-related persons" to refer to individuals reporting that they are of one of the
the opportunity to testify. decennial census. There are substantial differences between the decennial census counts based
I have two letters of support. on reported race and the Census estimates of compact migrants derived from the 2005-2009
American Community Survey and 2008 migrant enumerations. For example, the 2010 decennial
One from Senator Craig Barshinger, who is chairman of the com- census counted 21,226 persons reporting they were solely of an FAS race in Hawaii, while the
mittee on Energy and Environmental Protection of the Virgin Is- 2005-2009 American Community Survey estimated 12,060 compact migrants in the state. On
the U.S. mainland, the 2010 decennial census counted 4,302 persons reporting they were solely
lands Legislature.
of an FAS race in Arkansas, while the American Community Survey estimated 1,155 compact
One from the League of Wom'en Voters in the Virgin Islands that migrants in the state. There are multiple defnitional and methodological reasons why these
I'd also like to enter as testimony for this hearing. numbers are not comparable. For a full discussion of these issues, see appendix IV of GAO-12-
64.
I look forward to answering any questions. 12 For 1986 through 2003, affected jurisdictions reported total compact impact costs of approxi-
[The prepared statement of Delegate Christensen follows:] mately $540 million to $568 million (unadjusted for inflation).
13 In addition, from 1992 through 2003, Guam received approximately $53 million, Hawaii re-
ceived $7 million, and the CNMI received $6.6 million from funds appropriated to Interior for
PREPARED STATEMENT OF HON. DONNA M. CHRISTENSEN, DELEGATE TO CONGRESS, grants to address compact impact. The largest annual compact impact grants to Guam in fiscal
U.S. VIRGIN ISLANDS, ON S. 1237 years 2005 through 2010 supported public school construction and maintenance. Most other
compact impact grants to Guam funded health and public safety purchases, such as the pur-
I want to begin by thanking you Chairman Wyden and Ranking Member Mur- chase or renovation of facilities, emergency vehicles, and medical supplies, among many others.
kowski for the friendship you have shown to the residents of the Insular Areas and All compact impact grants to Hawaii in fiscal years 2004 through 2010 were provided to its De-
their representatives in the House with the introduction of S. 274 and the sched- partment of Human Services to offset the cost of state-funded medical services. Compact impact
grants to the CNMI in fiscal years 2004 through 2010 supported the operations of several CNMI
uling of this hearing today. My Colleagues and I deeply appreciate the effort and government departments, such as the Departments of Public Health and Public Safety, and the
time you and your staff put into making both, the Omnibus Territories bill and this public school system.
hearing a reality. 14 Guam published its most recent estimate of the impact of compact migration in January
Mr. Chairman, I am pleased that S. 1237 includes five provisions that originated 2013. In its January report, Guam estimated that its fiscal year 2011 impact was $95.3 million
in bills I introduced in this and previous Congresses. The first and third provisions and its fiscal year 2012 impact was $125 million. CNMI estimated a 2011 impact of approxi-
of the bill. Sections 6 and 9, where included in legislation I sponsored last December mately $2.5 million and a 2012 impact of approximately $5.6 million in its 2012 compact impact
to address a crisis in the cost of electricity facing my constituents. The current aver- - grant application. We have not assessed the reliability of these more recent estimates. Hawaii
age cost for residential customers in the Virgin Islands is 50.8 cents per kilo watt 16 When the compacts were signed, FAS citizens were eligible for Medicaid; however, the Per-
has not compiled updated compact impact estimates since its 2011 report.
hour and 54.8 cents for commercial customers. These high costs threaten Virgin Is- sonal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) removed this
lands families at all income levels but especially low income. It also adversely im- eligibility. Hawaii chose to continue to provide equivalent services at its own expense. Current
pacting businesses causing closures and downsizing. legislation in both the House (H.R. 912 and H.R. 1222) and Senate (S. 744) would restore Med-
Section 6 is intended to look for long term sustainable solutions to the problem icaid eligibility for compact migrants. Guam and the CNMI, unlike states, are subject to annual
of high energy coast from fossil fuels for all Insular Areas. Section 9 on the other caps on federal funds for Medicaid; once this cap is reached, each area must provide for the
hand, is intended to provide immediate "short-term" relief to Virgin Islanders over cost from its own funds. For further information, see GAO, U.S. Insular Areas: Multiple Factors
Affect Federal Health Care Funding, GAO-06-75 (Washington, D.C.: Oct. 14, 2005).
the next 18 months when the local public utility believes it will be able to reduce 16 See table 2 on page 27 of GAO-12-64 for an analysis of the eligibility status of compact mi-
the cost of electricity by 30%. grants as of November 2011 for ten selected federal benefit programs, including Social Security
Section 10 and 11 of the bill deals with legislation I sponsored to bolster and give programs, Medicare, the Children's Health Insurance Program, Temporary Assistance to Needy
a boost to the tourism based economy of my home island of St. Croix. Families, and the Supplemental Nutrition Assistance Program.
....
62 11
and to lawfully work and establish residence indefinitely.7 In the 1986 compacts' en- Section 10 relates to the establishment of Castle Nugent National Historic site.
abling legislation, Congress stated that it was not its intent to cause any adverse Introduction of this bill continues an effort I begun in 2006 to continue the great
consequences for U.S. territories and commonwealths and the state of Hawaii. Con- precedent set by our forefathers when Yellowstone in Wyoming became the first na-
gress further declared that it would act sympathetically and expeditiously to redress tional park. The establishment of the Castle Nugent Historic Site would provide an
any adverse consequences and authorized compensation for these areas that might excellent opportunity to preserve a very special and unique landscape for the people
experience increased demands on their educational and social services by compact of St. Croix and visitors to the island for generations to come.
migrants from the Marshall Islands and the FSM. If designated, the Castle Nugent Historic Site would become the fourth National
The December 2003 amended compacts' enabling legislation restated Congress's Park Service unit on St. Croix. A special resource study authorized in 2006, has de-
intent not to cause any adverse consequences for the areas defined as affected juris- termined that the site meets criteria set by the NPS to determine national signifi-
dictions-Guam, Hawaii, the CNMI, and American Samoa. The act also authorized cance, suitability and feasibility. The bill calls for the preservation of 2,900 acres
and appropriated $30 million for each fiscal year from 2004 to 2023 for grants to which include a Caribbean dry forest, pristine coastal barrier coral reef system and
the affected jurisdictions, to aid in defraying costs incurred by these jurisdictions as a pre-Columbian and post-European settlement.
a result of increased demand for health, educational, social, or public safety services, In addition to guaranteeing the protection of one of the most ecologically sensitive
or for infrastructure related to such services specifically affected by compact mi- . areas on the island, H.R. 3726 also preserves a rich part of our historical and cul-
grants resident in the affected jurisdictions.8 tural past, by preserving the archaeological remains oi our indigenous Native Amer-
Figure 1* shows the locations of the FAS and the affected jurisdictions. ican inhabitants. The property has a long agricultural history dating back to the
The amended compacts' enabling legislation provides for Interior to allocate the 17305, when the Danish estate house, now listed on the National Register of His-
$30 million in grants to affected jurisdictions on the basis of their compact migrant torie Places, was constructed.
population. Each affected jurisdiction is to receive its portion of the $30 million per Section 11 would establish the St. Croix National Heritage Area on St. Croix, U.S.
year in proportion to the number of compact migrants living there, as determined Virgin Islands, which would provide us with a great opportunity to showcase and
by an enumeration to be undertaken by Interior and supervised by the U.S. Census expose St. Croix to the world. According to a 2009 national research study on U.S.
Bureau (Census) or another organization at least every 5 years.9 The act defines the Cultural and Heritage Travel by Mandela Research, 78% of all U.S. leisure travelers
population to be enumerated as persons, or those persons' children under the age participated in cultural and /or heritage activities while traveling. And these trav-
of 18, who pursuant to the compacts are admitted to, or resident in, an affected ju- elers spend more, $994 per trip compared to $611 for the average traveler.
risdiction. The amended compacts' enabling legislation permits, but does not re- Additionally, 2011 study by the Advisory Panel for Historic Preservation has also
quire, affected jurisdictions to report on compact migrant impact. If Interior receives confirmed that tourism is a growth industry worldwide and that there seems to be
such reports from the affected jurisdictions, it must submit reports to Congress that consistent evidence that heritage tourism is one of the fastest growing segments of
include, among other things, the governor's comments and administration's analysis that industry. the St. Croix National Heritage Area will play an important role in
of any such impacts. the revitalization of St. Croix; and its towns and neighborhoods and a key part of
The combined data from Census's 2005-2009 American Community Survey and strategic economic development planning for the Territory.
the 2008 required enumerations in Guam and the CNMI estimated that approxi- Enactment of a National Heritage Area for St. Croix has been a top priority of
mately 56,000 compact migrantslo-nearly a quarter of all FAS citizens-lived in mine for almost ten years. I am therefore hopeful and encouraged that S. 1274 could
U.S. areas, with the largest populations in Guam and Hawaii. An estimated 57.6 be the catalyst to finally make it a reality.
percent of all compact migrants lived in affected jurisdictions: 32.5 percent in Guam, Last but not least, the bill includes my legislation, H.R. 85, to establish a Chief
21.4 percent in Hawaii, and 3.7 percent in the CNMI, while nine mainland states Financial Officer in section 7. I first introduced legislation to create a Chief financial ,
each had an estimated compact migrant population of more than 1,000. (See fig. 2.) Officer for my district, the U. S. Virgin Islands in 2003. At that time, the then gov-
On the basis of these combined data, we estimate that approximately 68 percent ernor was warning of layoffs, payless paydays and reduced services. My financial
of compact migrants were from the FSM, 23 percent were from the Marshall Is- advisory team was urging a control board, and the Federal government had put our
lands, and 9 percent were from Palau. Surveys conducted in affected jurisdictions Housing Authority into receivership, the U S Department of Education was pre-
from 1993 through 2008 show growth in the compact migrant populations in Guam
paring to place a fiduciary to oversee and control spending in our local department
and the Department of Justice was considering putting other local agencies under
and Hawaii. In the CNMI, from 2003 to 2008, the compact migrant population de-
clined. Over the same period, the total compact migrant population in Guam and receivership. Our Prisons and waste water systems were under consent decree.
Hawaii grew as a percentage of their total populations. The estimated number of Not seeing any concerted efTort to reverse or correct the situation, as an elected
compact migrants in Guam increased from 9,831 in 2003 to 18,305 in 2008. In 2003, leader of my community I did not feel I could sit by and do nothing. The Bill to
compact migrants represented approximately 6 percent of Guam's total population, create an independent CFO was my response.
In the 111th Congress we revised the bill, removing any authority that would in-
but by 2008 they had increased to approximately 12 percent. Compact migrants in
fringe on those of the Governor and his cabinet. This CFO would simply certify the
revenue of the Territory. I felt that this was important then and now as the Virgin
7 Under the compacts, the United States has a responsibility for the defense of the FAS, and Islands' legislators, unions and every day citizens repeatedly question the reports
the compacts provide the United States with exclusive military use rights in these countries.
and projections of the Virgin Islands government . At the very least it would confi rm
In addition, under the compacts, the United States provided economic assistance and access to
certain federal services and programs, among other things. Under the initial compacts with the the government's projections objectively and independently, and at best the people
FSM and the Marshall Islands, the United States provided $2.1 billion in economic assistance of the Virgin Islands would have an accurate and trusted source of this information.
to these governments. Under the amended compacts, the United States will provide an esti- - Today after the layoffs of approximately 500 government employees, an across the
mated combined total of $3.6 billion in economic assistance, much of it in a form known as "sec- board 8% cut in salaries, a structural deficit and budget shortfalls in FY 2013 yet
tor grants," in annually decreasing amounts from 2004 through 2023. For more information to be filled with a 2014 unbalanced budget now before the VI Senate; with union
about U.S. assistance provided under the amended compacts, see Compacts of Free Association: negotiations stalled, and uncertainty on the restoration of the 8% cuts, coupled with
Micronesia's and the Marshall Islands' Use of Sector Grants, GAO-07-514R (Washington, D.C.:
the closure of our largest private sector employer the HOVENSA oil refinery-re-
May 25,2007). We plan to publish an additional report on the use of these funds in September
2013. sulting in reduced revenues, I feel that this office is more needed than ever.
8 Beginning in fiscal year 2010, Interior was to annually award approximately $16.8 million No, it will not solve the fiscal problems we are facing. All of us-elected and other
to Guam, $11.2 million to Hawaii, and $1.9 million to the CNMI. leaders have a hard road ahead to meet these challenges, but it will pave the way
* Figures 1-3 have been retained in committee files. for us working together to resolve them as we will all trust the numbers and be
9 Census conducted these enumerations in 2003 and 2008 and plans to conduct a third in clear on where we are financially. HR. 85 is based on the CFO in the District of
2013. Previous Interior and Census surveys had enumerated the migrant population in 1992- Columbia and that office has served them well over the past 20 or so years.
1993 and 1997-1998. Many may ask if such an office is needed why then is it not being created locally.
10 Census's 2005-2009 American Community Survey and 2008 enumerations estimated the
There have been several attempts to pass legislation aimed at the same goal of bet-
total number of compact migrants in U.S. states and territories as ranging from 49,642 to
63,048, with a 90 percent confidence interval; that is, Census is 90 percent confident that the ter financial accountability and transparency, but they have not passed. The current
true number of compact migrants falls within that range. For additional detail on these Census administration strongly opposes this bill and would surely veto such local legisia-
estimates, see pages 12 through 18 of GAO-12-64. tion.
....
12 61
Some may feel that passing this bill would represent an imposition of the will of vancement, and securing security and defense rights. In addition, the compacts pro-
Congress on local authority. I would respond that it is legislation introduced by the vide for citizens of these freely associated states (FAS) to enter and reside indefi-
representative of the people of the Virgin Islands, and further there are many times nitely in the United States, including its territories. Since the compacts went into
that Congress has been and will continue to be called on to act on behalf of the Vir- effect-in 1986 for the FSM and the Marshall Islands and in 1994 for Palau-thou-
gin Islands because we are still governed by an act of Congress-the Revised Or- sands of migrants from these countries have established residence in U.S. areas,
ganic Act of 1954.
particularly in Guam, Hawaii, and the Commonwealth of the Northern Mariana Is-
I had expected that the House would have completed action on H.R. 85 and sent lands (CNMI).2
it to you for further consideration as we have done on four previous occasions but In 2003, Congress approved amended compacts with the FSM and the Marshall
that will not occur until later this month. Islands.3 In the amended compacts' enabling legislation, Congress extended addi-
In closing Mr. Chairman and Ranking Member, I would like to request your con- . tional economic assistance to the two countries and authorized and appropriated $30
sideration for adding two more of my bills as S. 1237 moves forward. million annually for 20 years for grants to Guam, Hawaii, the CNMI, and American
The first bill is H.R. 374 which seeks to create an innovative pilot program to le- Samoa, which it deemed "affected jurisdictions," to help defray the cost of services
verage private pension assets to raise revenues for both the federal treasury and to compact migrants.4 Congress directed the Department of the Interior (Interior)
investment in the Virgin Islands. It would creatively address the chronic under- - to divide these compact impact grants among the affected jurisdictions in proportion
funding of infrastructure needs in the Virgin Islands through a dedicated source of to the most recent enumeration of compact migrants residing in each jurisdiction.
revenue that would enable the territory to build a modern infrastructure that would Since 1986, affected jurisdictions have submitted to Interior compact impact reports
move the islands toward self-sufficiency and reduce unemployment. These invest- that include descriptions of, and estimated costs for, education, health, public safety,
ments would substantially mitigate the federal government;'s cost for rebuilding and social services that local government agencies provided to compact migrants.
after tropical storms and hurricanes. The Joint Committee on Taxation estimated However, affected jurisdictions have expressed continuing concerns that they do not
that the bill would raise $477 million over 10 years to the U.S. Treasury; however, receive adequate compensation for the growing cost of providing government serv-
with the lull implementation of the Roth income cap removal, it is now likely to ices to compact migrants. In addition, thousands of compact migrants have moved
raise approximately $500 million a year. to other states that are not eligible to receive compact impact grants. My statement
The second bill, H.R. 79, would address a problem with the Affordable Care Act draws from our November 2011 report on compact migrants and will discuss chal-
which included a significant increase in the federal medical assistance percentage lenges in assessing the impact of compact migrants on U.S. areas.5
(FMAP) for the territories but kept or match at a rate which prevents us from ac- For our 2011 report's discussion of the impact of compact migrants, we reviewed
cessing the increased funding. H.R. 79 would amend the law to tie the FMAP for previous reports on compact migration and cost estimation, Interior's impact re-
Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and Amer- ports, as well as the supporting documentation and methodologies used to prepare
ican Samoa, beginning in FY2014, to the highest FMAP applicable to any of the 50 impact reports. We also interviewed Interior and local government officials. To as-
states. This legislation does not have a cost associated with it because it just shifts sess compact impact cost reporting, we reviewed affected jurisdictions' impact re-
the existing pool of resources that already are available.
ports since 2004 and compared these reports to cost estimation criteria.6 To assess
Thank you once again Chairman Wyden and Ranking Member Murkowski for
Interior's guidance on compact impact reporting, we reviewed the requirements in
scheduling this hearing today. This concludes my oral remarks. I look forward to the amended compacts' enabling legislation and Interior's existing guidelines. To de-
answering any questions you may have.
scribe compact migrants' role in the economy, we used data from earlier FAS mi-
The CHAIRMAN. Congresswoman, thank you. Without objection, grant surveys, supplemented where possible with additional information from local
agencies and other literature. For this statement, in June 2013, we updated and as-
we'll put those letters into the record.
sessed progress made by Interior on the recommendation in the 2011 report that
I thank you for your thoughtful statement. I also remember all Interior disseminate adequate guidance on estimating compact cost impacts. Our
our conversations about health care because you've always been 2011 report contains a detailed description of its scope and methodology.
very creative and very practical. And I appreciate your leadership We conducted this work in accordance with generally accepted government audit-
in those areas. ing standards. Those standards require that we plan and perform the audit to ob-
tain sufficient, appropriate evidence to provide a reasonable basis for our findings
So, let's go next to you, Congresswoman Bordallo. We welcome and conclusions based on our audit objectives. We believe that the evidence obtained
you. provides a reasonable basis for our findings and conclusions based on our audit ob-
We'll make your prepared remarks a part of the record. If you'd jectives.
just like to talk for 5 minutes or so about what's important to you Background
that would be great. The FSM, the Marshall Islands, and Palau are among the smallest countries in
the world. In 2008, the three FAS had a combined resident population of approxi-
STATEMENT OF HON. MADELEINE Z. BORDALLO, GUAM mately 179,000-104,000 in the FSM, 54,000 in the Marshall Islands, and 21,000
in Palau.
DELEGATE TO CONGRESS
Under the compacts of free association, citizens of the FAS are exempt from meet-
Ms. BORDALLO. Hafa Adai, Chairman Wyden and Ranking Mem- ing the visa and labor certification requirements of the Immigration and Nationality
Act as amended. The migration provisions of the compacts allow compact migrants
ber Murkowski and members of the committee who are here. to enter the United States (including all U.S. states, territories, and possessions)
Thank you for your opportunity to provide testimony on the re-
newal of the Palau compact in the Omnibus Territory Act.
2 n this report, 'U.S. areas" refers to the 50 U.S. states; the U.S. insular areas (Guam, the
First I'd like to address the critical importance of advancing the CNMI, American Samoa, and the U.S. Virgin Islands); Puerto Rico; and the District of Colum-
renewal of the Palau Compact. bia.
3 Compact of Free Association Amendments Act of 2003, Pub. L. No.108-188, December 17,
Palau is one of our closest and our strongest allies. Renewal of 2003. In this testimony, the act is referred to as "the amended compacts' enabling legislation."
the Palau Compact has lingered in the U.S. Congress for over 4 4 Because of American Samoa's small reported FAS population-estimated at 15 in a 2008
years. Our lack of action on renewing the compact has very signifi- 5 GAO-12-64.
enumeration-we did not address compact migrants in American Samoa in our 2011 report.
cant impacts for the geopolitical situation in the Western Pacific. 6 GAO, GAO Cost Estimating and Assessment Guide: Best Practices for Developing and Man-
Palau is truly critical to our national security and economic inter- aging Capital Program Costs, GAO-09-3SP (Washington, D.C.: March 2009) and OMB Circular
No. A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs, revised
est. We should not put this relationship in jeopardy. October 29, 1992.
....
60 13
this statement, GAO assessed progress made by Interior to address the rec- With regards to the Omnibus Territories legislation I want to
ommendation that it disseminate cost guidelines.
particularly thank Chairman Wyden and Ranking Member Mur-
What GAO Recommends kowski for introducing this bill. This bill contains many provisions
GAO is not making new recommendations in this statement. In its 2011 report, important to the territorial delegates. I hope this committee will
GAO recommended that Interior disseminate adequate guidance for estimating com-
pact cost impacts and call for the affected jurisdictions to apply these guidelines,
advance this legislation in the coming months.
among other steps needed to assess and address the impact of the growing compact Of particular importance to the people of Guam is section 12, the
migration. Interior concurred with the recommendation on providing adequate guid- text of the Guam World War II Loyalty Recognition Act. I think,
ance for estimating compact cost impacts. Mr. Chairman, this is one of those that you referred to as con-
What GAO Found troversial. Bringing resolution to a painful chapter in Guam's his-
Data from the U.S. Census Bureau (Census) show that migrants from the freely tory is critical.
associated states (FAS)-the Federated States of Micronesia (FSM), the Marshall Is- In particular this bill would implement the recommendations of
lands, and Palau-reside throughout U.S. areas. GAO's 2011 report found that Cen- -
sus estimates that roughly 56,000 compact migrants-nearly a quarter of all FAS citi- the Guam War Claims Review Commission which was established
zens-were living in U.S. areas in 2005 to 2009. About 58 percent of compact mi- by the 107th Congress. The Review Commission found that the oc-
grants lived in areas that Congress defined in the amended compacts' enabling leg- cupation of Guam was especially brutal due to the unfailing loyalty
islation as affected jurisdictions: American Samoa, Hawaii, Guam, and the Common- of the people of Guam to the United States of America. The people
wealth of the Northern Mariana Islands (CNMI).
For fiscal years 2004 through 2010, Hawaii, Guam, and the CNMI reported more of Guam were subjected to forced labor, forced marches, intern-
than $1 billion in costs associated with providing education, health, and social serv- ment, beatings, rapes and executions and including public behead-
ices to compact migrants-far in excess of the $210 million in compact impact grants ings. The Review Commission recommended that Congress remedy
over that time period. The afTected jurisdictions reported impact costs for education,
this injustice through the enactment of legislation to authorize pay-
health, public safety, and social services to the Department of the Interior (Interior).
Education accounted for the largest share of reported expenses in all three jurisdic- ment of the claims.
tions, and health care costs accounted for the second-largest share overall. Now the big question is why doesn't Japan pay for this?
However, assessed against best practices for cost estimation, these cost estimates It is important to note that the Review Commission found that
contain a number of limitations with regard to accuracy, adequate documentation,
and comprehensiveness, affecting the reported costs' credibility and preventing a
the United States signed a Treaty of Peace with Japan on Sep-
precise calculation of total compact impact on the affected jurisdictions. For exam- tember 8, 1951, which precludes Americans from making claims
ple, some jurisdictions did not accurately define compact migrants, account for fed- against Japan for war reparations. The treaty closed any legal
eral funding that supplemented local expenditures, or include revenue received from mechanism for seeking redress from Japan. The U.S. Government
compact migrants.
Interior developed guidelines in 1994 for reporting compact impact. However, sev-
has settled claims for U.S. citizens and other nationals through
eral officials from the reporting local government agencies, as well as Interior offi- various claims programs authorized by Congress.
cials, were not aware of the guidelines and had not used them. Moreover, the 1994 Further, this section addresses concerns that have been raised
guidelines do not address certain concepts that are essential for reliable estimates about this legislation in the past.
of impact costs, such as calculating revenue received from providing services. Pro-
viding more rigorous guidelines to the affected jurisdictions that address concepts
First, the text reflects a compromise that was reached with the
essential to producing reliable impact cost estimates and promoting their use for Senate when they considered the legislation as a provision of the
compact impact reports would increase the likelihood that Interior can provide reli- National Defense Authorization Act for fiscal year 2011. That com-
able information on compact impacts to Congress. Although Interior took initial
promise removes one claims category but protects the claims of liv-
steps to implement GAO's recommendation in 2012, it has not yet provided updated
guidelines for estimating compact cost impacts. ing survivors. We went on with this.
The provision also contains an offset for the estimated cost of the
AMected Jurlsdictions' Reported Compact Impact. by Sectoi. 2004-2010 bill. The bill would be paid by section 30 funding remitted to Guam
through the U.S. Department of the Interior at any level above sec-
Sect.1 Guarn Haw:ali CNMI Total
Ed,c=tion.W Bervrees 8201,080,399 1291.063.024 $25,426.go $517,569,475 tion 30 funds in fiscal year 2012. With the realignment of military
Haanh sen/ices 563,374,486 3237,858,603 $10,700,277 $313.963,456 personnel to Guam, it is expected that Guam will receive additional
PuDIio safely Bely:ox 555,561,983 57.641,537 $17,852,038 $31,065,558 section 30 funds above the current levels.
Socia! IC,-vioes 54.532,431 392,153.026 51.327730 590,214.187
Total $326,54@,202 $623.752280 151514,04 St,0,0.HY,aFT . This mechanism is a credible budget offset that meets Senate
and House budget rules. I have talked to local leaders about this
Sco. : CAO ..0408 41 afe:ed Wzililieri' 0/,racl noast reports for 2004 0,0,;oh 20 10
Nota: ~Ple 'eporte a cest, gre in nombell ddhe, midinted fet inflatkn offset. There is a consensus that while they would prefer an out-
Chairman Wyden, Ranking Member Murkowski, and Members of the Committee: right appropriation from Congress, they recognize that we must
I am pleased to submit this statement about our previous work on the impact of overcome budget objections that have stymied this bill.
migration under provisions of the compacts of free association. 1 Three Pacific island Our community recognizes that we must solve this matter once
nations-the Federated States of Micronesia (FSM), the Republic of the Marshall Is-
and for all. I'm passing this authorization to bring justice and clo-
lands, and the Republic of Palau-have entered into compacts with the United
States. Compact goals included achieving self government, promoting economic ad-
sure for the people of Guam.
Earlier I discussed the importance of the Palau Compact Re-
1 GAO, Compacts of Free Association: Improvements Needed to Assess and Address Growing newal. However, it is also important to remain mindful of the im-
Migration, GAO-12-64 (Washington, D.C.: Nov. 14, 2011). We also previously reported on com- pacts of compact migrants on affected jurisdiction. The compacts,
pact migrants and their impact in Foreign Relations: Migration From Micronesian Nations Has
Had Significant Impact on Guam, Hawaii, and the Commonwealth of the Northern Mariana Is- while important to our national interest, do have negative con-
lands, GAO-02-40 (Washington, D.C.: Oct. 5, 2001). sequences for local affected jurisdictions. The amount of compact
....
14
impact funding in a given fiscal year is not nearly enough to cover
the expenses incurred by local governments, who provided services
to compact migrants.
Section 13 takes some important steps to address the issue of un-
reimbursed compact impact costs. Jurisdictions which are greatly
impacted by compact migrants spend a significant amount of local APPENDIX II
funds to support the social needs of these migrants. While Con-
gress does appropriate an annual compact impact funding, these Additional Material Submitted for the Record
funds are insufficient to cover the entirety of impacts imposed by
these migrants.
The Guam legislature has passed a resolution that asks me to STATEMENT OF HON. HERSEY KYOTA, AMBASSADOR OF THE REPUBLIC OF PALAU TO
seek additional compact impact funding. We recognize that an ap- THE UNITED STATES, ON S. 1268
propriation in the amounts requested by the Guam legislature is
The Republic of Palau appreciates the opportunity to provide this Statement to
not feasible under the current budgetary constraints. So that is the Senate Energy and Natural Resources Committee in connection with Senate Bill
why we must look for other creative solutions that will have a tan- 1268, to approve the Agreement between Palau and the United States entered into
gible benefit for the affected jurisdictions. We achieve that, in part, on September 3, 2010. On behalf of President Remengesau and the people of Palau,
through section 13. I would also like to convey our special appreciation and gratitude to Chairman
Wyden, Ranking Member Murkowski and the members of this Committee for their
Finally, I strongly support inclusion of section 13 in the Omnibus continued support and assistance to the Government and people of Palau.
legislation. The provision would very simply clarify current stat- We particularly appreciate that Chairman Wyden so promptly introduced S. 1268
utes. The provision would make clear the U.S. citizens and U.S. na- and included it in the July 11 hearing. Palau is also grateful for the efforts dis-
tionals have preference when applying for Section 8 housing on
cussed at the hearing to expeditiously find the means to implement the Agreement.
As the witnesses at the hearing explained, the S. 1268 would implement the
Guam. Agreement reached between Palau and the United States following the review man-
Finally, I strongly support section 16 that will increase the waiv- dated under Section 432 of the Compact of Free Association between Palau and the
er on local matching requirements on most Federal grant pro- United States. In short, as noted at the hearing, the Agreement addresses the goal
grams. The territories have limited resources. Oftentimes the declining scale of funding through 2024 and it provides for Palau to continue to
of economic self-reliance by extending assistance to Palau under the Compact on a
matching requirements inhibit them from competing for critical make economic, legislative, financial, and management improvements.
Federal funds. The Agreement has been awaiting approval by the United States Congress for al-
Mr. Chairman and Ranking Member Murkowski, at this table most three years. In addition to creating regional strategic and security concerns,
today we represent 1.4 million American citizens living in the terri-
this delay is an obstacle to Palau's continued economic growth and progress toward
self-reliance and negatively impacts the confidence of domestic and foreign inves-
tories. I want to thank you for the chance to testify. I look forward tors. It also makes managing Palau's finances difficult and postpones critical public
to your questions. infrastructure investments and maintenance of existing economic infrastructure.
Thank you. United States government in implementing the Agreement.
Throughout this period, Palau has patiently worked as best it can to assist the
[The prepared statement of Delegate Bordallo follows:]
Chairman Wyden indicated that Palau is unsinkable as a country. Palau's friend-
ship with the United States has also remained unsinkable. Our two countries need
PREPARED STATEMENT OF HON. MADELEINE Z. BORDALLO, DELEGATE TO CONGRESS, the Agreement so that the strong relationship between Palau and the United States
GUAM, ON S. 1268 AND S. 1237 can continue to be an important and strategic base for stability and security in the
Western Pacific. Palau will continue to support the efforts of the United States to
Chairman Wyden and Ranking Member Murkowski, thank you for the oppor- promptly approve the Agreement.
t;unity to testify on legislation pending before the Senate Committee on Energy and
Natural Resources. In particular, I appreciate providing testimony on S. 1237 the
Omnibus Territories Act and S. 1268 a bill to renew the Compact with the Republic STATEMENT OF DAVID B. GooTNICK, DIRECTOR, INTERNATIONAL AFFAIRS AND TRADE,
of Palau. I appreciate the concerted effort to advance legislation and policies that THE U.S. GOVERNMENT ACCOUNTABILITY OFFICE
are important to the people of the U.S. territories. Moreover, I appreciate this Com-
mittee's continued leadership in finally passing the renewal of the Compact with the COMPACTS OF FREE ASSOCIATION.-GUIDELINES NEEDED TO SUPPORT RELIABLE
Republic of Palau.
 ESTIMATES OF COST IMPACTS OF GROWING MIGRATION
S . 1268-PALAU COMPACT RENEWAL Why GAO Did This Study
U.S. compacts with the FAS permit those three countries' citizens to migrate to
Before I address specific provisions in S. 1237, I want to address the critical im-
the United States and its territories (U.S. areas) without regard to visa and labor
portance of advancing S. 1268 the renewal of the Palau Compact. Palau is one of
certification requirements. Thousands of FAS citizens have migrated to U.S. areas
our closest and strongest allies. Renewal of the Palau Compact has lingered in the
(compact migrants)-particularly to Hawaii, Guam, and the CNMI. In fiscal year
U.S. Congress for over four years and this is simply unacceptable. Moreover, I am
2004, Congress appropriated $30 million annually for 20 years to help defray af-
deeply concerned by this Administration's lack of focus, effort and attention to this
fected jurisdictions' costs for migrant services. Interior allocates the $30 million as
critical issue. Our lack of action on renewing the Compact has very significant im-
compact impact grants in proportion to the number of compact migrants living in
pacts for the geopolitical situation in the Western Pacific.
The Compact with Palau as well as the Federated States of Micronesia and Re-
each affected jurisdiction. Although not required, affected jurisdictions may report
impact costs to Interior, which submits any reports it receives to Congress. This
public of the Marshall Islands is predicated on continued U.S. military access to
statement draws from GAO's November 2011 report on compact migrants and dis-
these areas. In fact, the Compact gives the United States strategic control over a
cusses challenges in identi~ing the impact of compact migrants on U.S. areas. For
vast area of the Asia-Pacific region. In order to have base rights for 50 years we
provide Palauans with free access to the United States and limited direct financial (59)
....
15
assistance to the Palau government. The current Compact agreement would provide
Palau with $215.75 million for 14 years and phase out assistance in fiscal Year
2023, a year before the next review.
If we do not follow-up with our commitment to Palau we risk our strategic posi-
tioning in this area of the world. The lack of leadership from the Obama Adminis-
tration and lack of action from the U.S. Congress on this compact renewal risks un-
dermining our strategic goal of rebalancing to the Asia-Pacific region. Time after
time I meet with officials from foreign governments who embrace the rhetoric be-
hind the rebalance to the Asia-Pacific region yet express concern about the lack of
tangible resources or commitment in the rebalance. The inability to renew the Com-
pact reflects that lack of commitment. The total cost of the Compact renewal is only
$215 million over 14 years. To put that figure in perspective, since 2009 we have
spent $85.6 million in foreign assistance to China.
Several years ago the Congressional China Caucus in the House of Representa-
tives held a briefing from Department of Defense and Department of State officials
on the importance of renewing the Palau Compact. The Department of Defense
briefer presented a map of the Western Pacific and highlighted the importance of
the first and second island chains in U.S. defense posture. Palau is on the front
lines of the first island chain and truly critical to our national security, diplomatic
and economic interests in the Asia-Pacific region. Our assistance to Palau is a small
price to pay for this important partnership.
I find it incomprehensible that we cannot find a reasonable offset to move the
Palau Compact renewal legislation forward. I hope that the Obama Administration
will renew their leadership role and. work with Congress to find an appropriate off-
set for this critical legislation. I fear that further inaction will undermine the ,
strength of our alliance with Palau and that has serious consequences for the Asia-
Pacific region and for my constituents on Guam.
It is also important to remain mindful of the impacts of Compact migrants on af-
fected jurisdictions like Guam, Hawaii and the CNMI. The Compacts, while impor-
tant to our national interest, do have negative consequences for local affected juris- ..„
dictions. The amount of Compact-Impact funding in a given fiscal year is not nearly
enough to cover the expenses incurred by local governments who provided services
to Compact migrants. I appreciate that S. 1237 takes some important steps to ad-
dress the issue of unreimbursed Compact-Impact but this issue requires creative so-
lutions during these tight budgetary times.
S. 1237-OMNIBUS TERRITORIES LEGISLATION »
Of similar importance is today's legislative hearing on S. 1237. I appreciate the
efforts of Chairman Wyden and Ranking Member Murkowski to finally act on a va-
riety of provisions and policies that are important to the people of the U.S. terri-
tories including my constituents on Guam. There has been little action on issues im-
portant to the U.S. territories over the past several years and this bill and hearing
are an important step forward. I thank the Chairman and Ranking Member and
look forward to working with them to advance this legislation.
SECTION 12-GUAM WAR CLAIMS REVIEW COMMISSION
Of particular importance to the people of Guam is section 12, the text of the
Guam World War II Loyalty Recognition Act. Guam war claims legislation is one
of my top legislative priorities and I appreciate its inclusion as part of the overall
omnibus legislation. Bringing resolution to a painful chapter in Guam's history is
critical. In particular, this bill would implement the recommendations of the Guam
War Claims Review Commission, which was appointed by Secretary of the Interior
Gale Norton and established by an Act of the 107th Congress (Public Law 107-333).
The Review Commission, in a unanimous report to Congress in June 2004, found
that there were significant disparities in the treatment of war claims for the people
of Guam as compared with war claims for other Americans. The Review Commission
also found that the occupation of Guam was especially brutal due to the unfailing
loyalty of the people of Guam to the United States of America. The people of Guam
were subjected to forced labor, forced marches, internment, beatings, rapes and exe-
cutions, including public beheadings. The Review Commission recommended that
Congress remedy this injustice through the enactment of legislation to authorize
payment of claims in amounts specified.
It is important to note that the Review Commission found that the United States
Government seized Japanese assets during the war and that the record shows that
settlement of claims was meant to be paid from these forfeitures. Furthermore, the
United States signed a Treaty of Peace with Japan on September 8, 1951, which
precludes Americans from making claims against Japan for war reparations. The
....
16
treaty closed any legal mechanism for seeking redress from the Government of
Japan, and the United States Government has settled claims for U.S. citizens and
other nationals through various claims programs authorized by Congress.
Further, this section addresses concerns that have been raised about this legisla-
tion in the past. First, the text reflects a compromise that was reached with the
Senate when they considered the legislation as a provision of the National Defense
Authorization Act for Fiscal Year 2011. That compromise removes payment of APPENDIXES
claims to heirs of survivors who suffered personal injury during the enemy occupa-
tion. The provision continues to provide payment of claims to survivors of the occu-
pation as well as to heirs of citizens of Guam who died during the occupation. The
compromise continues to uphold the intent of recognizing the people of Guam for
their loyalty to the United States during World War II. APPENDIX I
The provision also contains an offset for the estimated cost of the bill. Many have
expressed concern that there was no offset to pay for the cost of the bill. Guam war - Responses to Additional Questions
claims has a very simple offset that will pay for the cost of the provision over time.
The bill would be paid by section 30 funding remitted to Guam through the U.S.
Department of Interior at any level above section 30 funds that were remitted to
Guam in fiscal year 2012. With the impending relocation of Marines from Okinawa RESPONSE OF EILEEN SOBECK TO QUESTION FROM SENATOR WYDEN
to Guam as well as additional Navy and Air Force personnel relocating to Guam, Question 1. Assistant Secretary Sobeck, Delegate Christensen asks that the Com-
it is expected that Guam will receive additional section 30 funds. Claims would then
mittee also consider adding her legislation H.R. 374 to this Omnibus bill. H.R. 374
be paid out over time based off the additional amounts that were made available
would establish a pilot program to leverage private pension funds to raise revenues
in any given year. Not only does this offset address payment of claims but it impacts
for meeting the chronic infrastructure needs in the territory and it would raise
my jurisdiction only and is a credible source of funding that will ensure that claims funds for the U.S. Treasury. Because it is a revenue raiser, this bill would be in
will be paid. the jurisdiction of the Finance Committee and as a member of that Committee, I
I have talked to local leaders about this offset and the Guam Legislature supports am interested in the Administration's views on this bill because it may also provide
this approach provided that use of the Section 30 funds does not set precedence for
an offset for the legislation to approve the Compact Agreement with Palau.
using these funds in the future which I do not believe it does. As a community, we Would you please provide the Administration's views, including Treasury Depart-
agree that we must find the means to resolve this longstanding injustice, and the ment views, on this bill to the Committee with 45 days?
Section 30 offset is a placeholder for the Administration to work with Congress in Answer. Approving the results of the Compact Review Agreement is of critical im-
funding this requirement. We do intend to seek subsequent appropriations from the portance to the national security of the United States, to our bilateral relationship
Obama Administration should this authorization pass so that our Section 30 funds with Palau, and to our broader strategic interests in the Asia Pacific region. The
which are intended to address local needs will continue to be made available to the , Department is interested in continuing to work with the Committee to identify an
Government of Guam.
appropriate off-set to approve the Compact Agreement with Palau. As you noted,
Again, resolving this issue is a matter ofjustice for the people of Guam. This care- HR 374 amends the Internal Revenue Code to provide for a reduction of taxes on
fully crafted compromise legislation addresses the concerns over the cost of this pro- distributions from certain retirement savings plans designated by an individual
vision. This provision represents a unique opportunity to right a wrong because under the age of 61 as being under investment by the Virgin Islands Investment
many of the survivors of the occupation are nearing the end of their lives. It is im- program for at least 30 years. This legislation amends the Internal Revenue Code
portant that Congress act on the recommendations of the Guam War Claims Review to raise revenue, and therefore is within the purview of the U.S. Treasury. The De-
Commission to finally resolve this longstanding injustice for the people of Guam. partment is unable to comment on behalf of the U.S. Treasury, but has flagged your
request for the U.S. Treasury's review.
SECTION 13-USE OF CERTAIN EXPENDITURES AS IN-KIND CONTRIBUTIONS
I strongly support section 13 of the underlying bill as it is an innovative way to
mitigate the impacts of Compact migrants on affected jurisdictions. Essentially the
provision would allow affected jurisdictions to consider the cost of providing local
services to Compact migrants as an in-kind contribution for the purposes of pro-
viding matching funds to certain federal grant programs.
Jurisdictions which are greatly impacted by Compact migrants spend a significant
amount of local funds to support the social needs of these migrants. As I discussed
earlier, the free access of these migrants to the United States is the key underpin-
ning of these compact agreements. While Congress does appropriate an annual Com-
pact-Impact funding, those funds are insufficient to cover the entirety of impacts im-
posed by these migrants. This has been affirmed by a GAO report 12-64 in 2011.
The provision will also help to address a key concern and recommendation from
that GAO report. In particular, passage of this provision will require the Office of
Insular Affairs to develop a mechanism to ensure that there is accurate and uniform
way to account for the amount of local funds that supplement federal funding to
support the Compact migrants.
The Guam Legislature has passed a resolution that asks me to seek additional
Compact-Impact funding. While we continue to engage the Administration and Con-
gress on this issue, we recognize that an appropriation in the amounts requested
by the Guam Legislature is not feasible or possible under the current budgetary and
political environment here in Washington DC. That is why we must look for other
solutions that will have a tangible benefit for the affected jurisdictions. I believe
that this provision will help defray the cost of supporting Compact migrants over
time and help affected jurisdictions apply for federal programs that support the
needs of local citizens. (57)
....
56 17
So expect that we'll be in touch as well with your respective Sec- SECTION 14-IMPROVEMENTS IN HUD ASSISTED PROGRAMS
retaries or your agencies. This has to get done. The 3 of you are I also strongly support inclusion of section 14 in the Omnibus legislation. The pro-
dedicated public servants. I don't doubt that for a moment. vision would very simply clarify an apparent vagueness in current statute. The pro-
We're going to have to look at some fresh approaches. vision would make clear that U.S. citizens and U.S. nationals have preference when
applying for Section 8 housing on Guam. In 1999, Public Law 106-504 amended Sec-
Ms. Sobeck, you got put under the microscope first because we tion 214(a) of the Housing Community Development Act of 1980, to make citizens
committed you to 2 weeks. I guess what I'm going to do is say that of the Freely Associated States (FAS) eligible for federal programs, grant assistance,
for Mr. Kagan and Mr. Singh. and services of the United States, "provided that, within Guam any such alien shall
not be entitled to a preference in receiving assistance under this Act over any
I want you to have every opportunity to flesh out your state-
United States citizen or national resident therein who is otherwise eligible for such
ments for the record. I suspect you may want to do that. We need assistance."
you to come back to us within 2 weeks as well with your ideas with Congressman Robert Underwood further clarified congressional intent of this leg-
respect to the points that I talked about. . islation by stating on the Floor of the House on June 29, 1999 "American citizens
in need of social services such as housing are not displaced by these very migrants.
Mr. Singh, a question of the Defense Department since this is a
Our omnibus legislation will ensure that American citizens are not left in the back
strategic asset sharing at least some portion of the cost. Then look- of the line for housing, for public housing."
ing at how the State Department can have a bigger role in this cer- The Guam Housing and Urban Renewal Authority (GHURA) promulgated regula-
tainly with respect to the idea I talked about, moving it to the De- tions for public housing assistance on Guam that provided, among others, priority
for U.S. citizens or nationals to receive assistance over FAS citizens. On May 11,
partment.
2012, GHURA received guidance from the U.S. Department of Housing and Urban
But we'll stay open for other options. Development (HUD) that "it is legally inconsistent with HUD's statutory and regu-
Do any of you have anything else you want to add before we latory scheme for GHURA to afford U.S. citizens a priority of COFA citizens in
wrap up? Guam on the basis of U.S. citizenship or nationality along."
Aldght I wrote to HUD on July 9, 2012 to request reconsideration of this guidance be-
cause I believed that HUD's distinction between "preference" and "priority':with re- 4.K
With that the Energy Committee is adjourned. gard to GHURA's tenant selection process misapplied the intent of Congress to not
..
[Whereupon, at 11:20 a.m., the hearing was adjourned.] displace U.S. citizens and nationals by permitting FAS citizens in the U.S. to benefit .13.
from federal social programs. F
HUD responded on August 3, 2012 and reaffirmed its guidance. The Department
A
concluded that while the statute make explicit that FAS citizens cannot receive a N.
housing preference over U.S. citizens, it does not provide that U.S. citizens may re- 4
ceive a preference over FAS citizens on the basis of national origin alone. The letter :
indicates that in some cases an FAS citizen could receive Section 8 benefits before
a US citizen based off local requirements. 14
I was deeply concerned by this interpretation by HUD and appreciate that this -4,
provision is included further clarifying Congressional intent and correcting HUD's .4
misplaced guidance and interpretation of the underlying statute. 3
4,
SECTION 16-WAIVER OF LOCAL MATCHING REQUIREMENTS
Finally, I strongly support section 16 that will increase the waiver on local match-
ing requirements from $250,000 to $500,000 on most federal grant programs. This
provision will help our local jurisdictions compete for federal grant programs. The
territories have limited resources and often times the matching requirements inhibit
them from competing for critical federal funds. The initial underlying law that
waived matching requirements was set back in 1977 and has not been adjusted
since then.
Again, I greatly appreciate the leadership of this Committee in holding a hearing
on this bill and its important provisions. I look forward to working together along
with other Delegates from the territories to ensure this bill becomes law. I look for-
ward to your questions.
The CHAIRMAN. Thank you, Congresswoman. You certainly de-
serve credit for bringing some real creativity to this. We'll certainly
have questions about the details and those related issues.
Mr. FALEOMAVAEGA. Mr. Chairman, I didn't mean to interfere. I
do apologize. I have to go catch my canoe or I'm not going to be
able to make the connecting flights.
The CHAIRMAN. I understand.
Mr. FALEOMAVAEGA. Thank you very much.
The CHAIRMAN. We will excuse you. Thank you for coming.
Mr. FALEOMAVAEGA. I have absolute confidence in my fellow del-
egates that they will answer any question you might have.
The CHAIRMAN. Very good.
Mr. FALEOMAVAEGA. Thank you very much.
....
18 55
The CHAIRMAN. Thank you, Congressman. visions to the Department of State, we consider moving forward on the Palau Com-
Alright, our next witness will be Congressman Sablan, Northern pact Review Agreement to be an important foreign policy priority.
Our partnership with Palau is a strategic asset and maintaining that relationship
Mariana Islands.
is a foreign policy priority for the Department of State; however, the Department
STATEMENT OF HON. GREGORIO KILILI CAMACHO SABLAN, of the Interior has many years of expertise, staffing resources, and institutional
knowledge in administering Compact assistance and understanding the development
DELEGATE TO CONGRESS, NORTHERN MARIANA ISLANDS needs of Palau, unlike the Department of State. Our Compact relationship affords
Mr. SABLAN. Thank you very much, Chairman Wyden, Ranking Palau the eligibility to receive types federal assistance, including access to federal
programs and services, typically provided only to U.S. states and territories (Com-
Member Murkowski, Senator Risch. Let me start by thanking you - monwealt~ of Puerto Rico, Guam, American Samoa, U.S. virgin Islands, and Com-
for agreeing to introduce the Omnibus Territories Act, S. 1237 and monwealth of Northern Marianas), that are generally not available to recipients of
for moving so quickly to hold this legislative hearing. U.S. foreign assistance. Primary jurisdiction over Palau Compact assistance, and
I'd also like to thank your committee staff for their generous help technical assistance to the other Compact states, has historically resided with the
Department of the Interior. We will continue working with Interior, the rest of the
with our territory offices to assemble this bill so it could be intro-
Administration, and you on this important policy issue.
duced on a bipartisan basis. Moving forward, any discussion on where Compact oversight responsibilities
Traditionally as Congressman Faleomavaega earlier said, Con- should reside should involve numerous stakeholders including the Department of
gress has handled territorial issues outside of the partisan arena. the Interior, the Department of Defense, the Department of State, the U.S. Agency
Although recently when stand alone territory bills have come up for International Development, the Office of Management and Budget, the National
Security Staff, as well as the numerous Congressional committees that have an in-
for consideration they have sometimes been given a party label and
terest in the U.S.-Palau Compact. Given that such complex discussions could require
sometimes they have to paired with other bills and that makes pas- a substantial amount of time and consideration, we believe that moving now, with-
sage very difficult. out any further delay, on the Palau Agreement is important.
But by getting the bipartisan sponsorship at the outset and by We hope this information is helpful. Please let us know if we can be of further
identifying a group of legislative proposals as territorial in nature, assistance.
as with S. 1237, the hope is that we can get a lot of work done effi- The CHAIRMAN. But what I had hoped, Mr. Singh, and frankly
ciently and without getting caught up in other concerns. what I think is disappointing, is I think everybody's got to step up.
That said, I acknowledge this committee already reported two I don't think it's acceptable to just say, look, we've always done it
sections of S. 1237 having to do with the Northern Mariana Islands this way. So we're going to keep doing it this way.
as a single, stand alone bill last month which I very much appre- I mean, that's not what I do on any other program. I mean, to
ciate.
have everybody just be on automatic pilot and say this is the way
One section dealing with the territories also passed the House
we've always done it, I think in these times we've got to be open
last month for the third time unanimously. to all the options.
The other section, rescheduling minimum wage increases in the
Particularly to say, look, and this would be fine with me to say
Northern Mariana Islands is time sensitive. So there were special this is difficult. Defense Department, other agencies under seques-
reasons to think that these two sections could and should move
tration, but we're going to roll up our sleeves and try to figure out
swiftly to the Senate Floor. I certainly hope the Senate will act this
month. how to solve some stuff that looks intractable. Particularly on these
kinds of issues, nobody gets exactly what they want. Nobody gets
Section 5 of S. 1237 is new, however, and needs a brief expla-
what they actually believe they deserve.
nation. This section makes 3 changes to the Consolidated Natural
The question is are we going to be able to get what we need?
Resources Act which extended Federal immigration to the Northern
I think, certainly the two ·of you and I've heard your agencies
Marianas.
First, it provides greater accountability in the use of training
talk about it, don't doubt for an instance, that this is a strategic
funds intended to help U.S. workers replace foreign labor in the relationship and one that we'd feel strongly about.
Northern Mariana's economy. This is a fee based fund. I think that So when you have a strategic relationship you start with that
employers, who pay the fee, deserve to know the money is spent and say, look, there's sorne tough calls. We've got to find some ways
effectively and for the intended purpose.
to address it and particularly in difficult times.
Second, section 5 provides for the immigration transition period I've said, for example, to my constituents just down the hall on
now scheduled to end on December 31, 2014, to continue through . something we feel very strongly about, the Klamath Basin in rural
2019. During this transition, which only began 2 years ago, the De- Oregon, where it's dry as a bone. They've worked very hard to come
partment of Homeland Security has been authorized to allow non- up with a restoration agreement. I said, I don't think we can afford
immigrants to continue to work in the Northern Marianas until we that.
reach the goal of an all U.S. workers. We're all going to have to go back to the table. That's what we're
In September, however, the GAO reported that 54 percent of the doing now on a bipartisan basis. We're going back to the table and
Island's work force is still comprised of foreign labor and noted, looking for ways where I just heard you say this Mr. Singh. I don't
"The CNMI economy remains dependent on foreign workers." Re- want you to feel specifically singled out, where we are saying it's
cent improvements in hotel occupancy rates and the number of in- not enough to say this is the way it's been done in the past. We've
bound tourists indicate that the demand for service employees, got to say we're going to do some new stuff.
....
54 19
We believe that this has worked. I mean, I think, clearly in the largely fueled by foreign workers, will continue strong beyond 2014.
case of Palau. So it seems necessary to extend the transition period.
The CHAIRMAN. So, time is brief. This does not undermine the conversion to a U.S. work force.
I just want to know whether you agree that the agreement with Employers must continue to attest that no U.S. workers available
Palau is important enough to put this idea and, frankly, all other for any given job before having a foreign worker. As I last men-
ideas on the table for discussion? tioned, section 5 also sharpens the training program so more U.S.
That's a yes or no answer, too. workers should be available.
Mr. KAGAN. I think that the agreement with Palau is very impor- Third, during the transition period non-immigrants with estab-
tant. It's important to move as quickly as possible. Certainly- lished investments in the Northern Mariana Islands were also pro-
The CHAIRMAN. That's not the question I'm asking. vided status. Section 5 extends the transition period for these in-
The question I'm asking is it important enough to put all the op-
vestors just as it does for non-immigrant workers keeping invest-
tions for funding this on the table?
ments in place.
Mr. KAGAN. I believe, again, Mr. Chairman, that this is a very Each of these 3 proposed changes come experience implementing
complex issue. This involves jurisdiction of a number of different
the Immigration and Nationality Act in the Northern Marianas. I
committees both in the Senate and the House. It involves two exec-
should emphasize that these changes will help the implementation
utive departments. Moving forward on this and having these sorts
no matter what the outcome of comprehensive immigration reform
of discussions could be something that we could do going forward.
bill, the Senate passed on June 27, which I strongly support.
But at the same time, it is very important to recognize this is
I will close with a word about section 13 which is not specific to
not an easy process. I mean we believe it's very important to move
quickly on Palau. the Northern Marianas, but will benefit my Islands as well as
r
The CHAIRMAN. Mr. Singh, given your testimony about Palau's Guam and American Samoa. Each of our territories have received
importance to America's national security isn't it appropriate that non-immigrants from the Freely Associated States which are al- .,
at least some of the cost of the Palau compact be borne by the De- lowed entry to the U.S. under terms of the compact. Each of our ,
fense Department? territories have experienced costs from this influx providing health e
Mr. SINGH. I think, as Mr. Kagan was just saying, I think we care, education, public safety services.
have, there are sort of, two issues here, Senator. Congress recognized the Federal responsibility to defray these
The first is can we quickly implement what we've agreed to? I costs in Public Law 108-188. But there is a shortfall between the ,
think for all of us we believe that that is going to be most easily Federal reimbursement the law provides and the cost we bear 10- :
done by keeping the obligations where they have been, the respon- cally. Increasing the Federal reimbursement is a steep hill to climb
sibilities where they have been and managing it as- in the present fiscal environment. So section 13 allows our local
The CHAIRMAN. So are you answering my question no or yes? government to use the costs of the services to FAS citizens as in- i
Mr. SINGH. At this time, no. I do not think it is appropriate for kind offsets for any local matching funds required by Federal for- ..
the Department of Defense to fund this requirement. Actually at mula grants.
this point-
Credit to this idea goes to my colleague, Ms. Bordallo. It is also
The CHAIRMAN. Not even a part? a creative way to remedy the long standing source of friction be-
Mr. SINGH. At this point also given the significant pressure the tween the United States insular areas and the Federal Govern-
Department is under and the difficulty we're having in the back ment. I support it fully. Our local governments will still be spend-
and forth we're having with Congress right now simply to fund our ing to provide services to FAS migrants, but at least they will have
FY'13 operations. Right now it is simply something the Department some additional compensation.
couldn't take on. Finally, Mr. Chairman, I'll just take a few moments, with your
I would echo what Mr. Kagan said. I think if we can get a way permission, I'd like to make a brief statement also in support of the
forward now that eventually in the future I would agree with you
other bill on the agenda today, S. 1268. As the only Micronesian
that this is, you know, anything should be discussed.
in Congress, I feel an obligation, a duty, to speak up for the inter-
But for not I think it is important that we try to move forward
est of the people of Palau and other parts of Micronesia when I
with the tools we have in place. - have the opportunity.
The CHAIRMAN. Here's what we're going to do.
In this case I will simply say that the Republic of Palau is a very
No. 1, I'm going to hold the record open because I at least want
important island of the United States and that Palau has waited
to give you, Mr. Singh, and you, Mr. Kagan, the opportunity to
flesh out the answers that you gave to my questions. We'll be open very patiently for Congress to take action and approval of the ex-
to any and all ideas.
tension of the compact agreement.
[The information referred to by response of Mr. Kagan follows:] Thank you very much for allowing us to testify this morning.
Thank you for the time.
While I am not aware of any serious discussions that have taken place at the
State Department or between agencies involving the possibility of moving full re- [The prepared statement of Delegate Sablan follows:]
sponsibility for oversight and administration of the Compacts and their funding pro-
....
20 53
PREPARED STATEMENT OF HON. GREGORIO KILILI CAMACHO SABLAN, DELEGATE TO Ill just interpret your answer as you're willing to take out the
CONGRESS, NORTHERN MARIANA ISLANDS, ON S. 1237 shovels and help us address this offset. I appreciate it.
Chairman Wyden, Ranking Member Murkowski, let me start by thanking you for Mr. Kagan, Palau and the other countries with which the United
agreeing to introduce the Omnibus Territories Act, S. 1237, and for moving so quick- States has compacts of free association are all sovereign nations.
ly to hold this legislative hearing. We've got embassies. We've got Ambassadors. They've got their
I'd also like to thank your committee staff from both sides of the aisle, who helped
the House territorial offices assemble this bill, so it could be introduced on a bipar- own seat at the United Nations.
tisan basis. Yet the funding for the compacts comes out of the Department
Traditionally, Congress has handled territorial issues outside of the partisan of the Interior. As we've looked at this question with respect to
arena. Although, recently, when stand-alone, territorial bills have come up for con-
sideration, they have sometimes gotten a party label. That makes passage more dif- both how to address our responsibilities and how to address the off-
ficult. By getting bipartisan sponsorship at the outset, and by identifying a group sets, I've come to think that what I just described to you made cer-
of legislative proposals as "territorial" in nature-as with S. 1237-the hope is we . tainly a lot of sense several decades ago. But I think it is worth
can get a lot of work done efficiently and without getting caught up in other con- discussing the idea of moving the Compact of Free Association re-
cerns.
That said, I acknowledge this Committee already reported two sections of S. 1237 sponsibilities from the Interior to the State Department.
having to do with the Northern Mariana Islands, as a single, stand-alone bill, last I want to emphasize that it seems to me this is an idea worth
month, which I very much appreciate. One section, dealing with the territorial sea, exploring just because these compacts are truly important to Amer-
also passed the House last month-for the third time, unanimously. The other sec- ica's strategic interests. My concern is that with all the inertia that
tion, rescheduling minimum wage increases in the Northern Marianas, is time-sen-
sitive. So, there were special reasons to think those two sections could and should inevitably sets in with a challenging budget situation. These com-
move swiftly to the Senate floor. And I certainly hope the Senate will act this pacts are at risk.
month. The Congress, the Administration, haven't been able to agree on
Section 5 of S. 1237 is new, however, and needs brief explanation. This section an offset. I think part of this is due to the fact that this is an Inte-
makes three changes to the Consolidated Natural Resources Act, which extended
federal immigration to the Northern Marianas. rior program. So people say the offset has to come from Interior.
First, it provides greater accountability in the use of a training fund intended to I think the reason I asked Ms. Sobeck the question is we're all
help U.S. workers replace foreign labor in the Northern Marianas economy. This is going to have to be part of this effort to address this.
a fee-based fund; and I think that the employers who pay the fee deserve to know I think it's also worth noting that the reality is these agreements
the money is spent effectively and for the intended purpose.
Second, Section 5 provides for the immigration transition period, now scheduled are with foreign nations. What we have traditionally said is agree-
to end on December 31, 2014, to continue through 2019. During the transition, ments with foreign nations, logically, belong at the Department of
which only began two years ago, the Department of Homeland Security has been State.
authorized to allow nonimmigrants to continue to work in the Northern Marianas,
until we reach the goal of an all-U.S. workforce. Has there been discussion, Mr. Kagan, at the State Department
In September, however, the Government Accountability Office reported that 54 of the idea of moving this program from Interior to State?
percent of the island workforce is still comprised of foreign labor and noted "[tlhe Mr. KAGAN. Thank you, Mr. Chairman.
CNMI economy remains dependent on foreign workers." Recent improvements in Obviously you raise a very valid and interesting point. I think
hotel occupancy rates and the number of in-bound tourists indicate that the demand
the short answer is no. There has not been a discussion.
for service employees, largely filled by foreign workers, will continue strong beyond
2014. So it seems necessary to extend the transition period. The CHAIRMAN. Are you sure?
This does not undermine the conversion to a U.S. workforce. Employers must con- Mr. KAGAN. At the Department of State.
tinue to attest that no U.S. worker is available for any given job before hiring a The CHAIRMAN. You're sure there have been no discussions?
foreign worker. And, as mentioned, Section 5 also sharpens the training program, Mr. KAGAN. I think-
so more U.S. workers should be available.
Third, during the transition period nonimmigrants with established investments The CHAIRMAN. That's a yes or no answer.
in the Northern Mariana Islands were also provided status. Section 5 extends the Mr. KAGAN. To the best of my knowledge we have had no discus-
transition period for these investors, just as it does for nonimmigrant workers, keep- sions because we believe that the current arrangements work.
ing investment in place.
Each of these three proposed changes comes from experience implementing the There is a long legislative history, a long history, of our relation-
Immigration and Nationality Act in the Marianas. And I should emphasize that ships with the compact states that go back to the original creation
these changes will help the implementation no matter what the outcome of the com- of the compacts where it was believed it was very important to
prehensive immigration reform bill the Senate passed on June 27-which I strongly
support. maintain a very special relationship between the compact states
I'll close with a word about Section 13, which is not specific to the Northern Mari- and the United States.
anas, but which will benefit my islands, as well as Guam and American Samoa. Because of this special relationship the compact states, typically
Each of our territories has received nonimmigrants from the Freely Associated Palau, are eligible to receive Federal assistance typically provided
States, who are allowed entry to the U.S. under terms of the Compacts. only to U.S. States and territories and not available to general re-
Each of our territories has experienced costs from this influx-providing health
care, schooling, public safety services. Congress recognized the federal responsibility cipients of U.S. foreign assistance.
to defray these costs in Public Law 108-188. But there is a shortfall between the For this reason the Department of the Interior which had the ex-
federal reimbursement that law provides and the costs we bear locally. pertise and continues to have the expertise and the experience and
Increasing the federal reimbursement is a steep hill to climb in the present fiscal the understanding of the development needs of these countries, was
environment. So, Section 13 allows our local governments to use the costs of services
to the FAS citizens as in-kind offsets for any local matching funds required by fed- the logical place to have the responsibility for continuing to provide
eral formula grants. the assistance.
....
52 21
I hope that my testimony today gives you an understanding and sense of how the Credit for this idea goes to my colleague Ms. Bordallo. It is a creative remedy to
Compact deepens our partnership with Palau and serves the interests of the United a longstanding source of friction between the U.S. insular areas and the federal gov-
States. I look forward to working with you and other Members of Congress to secure ernment. I support it fully. Our local governments will still be spending to provide
and advance U.S. interests in Palau by passing the legislation implementing the re- services to FAS migrants, but, at least, they will have some additional compensa-
suits of the Compact review before the end of the year. tion, even if not as new federal dollars.
Thank you again for giving me the opportunity to testify before you today and to Finally, with your permission, Mr. Chairman, I ask that the comments of North-
clarify the importance of this legislation, I look forward to answering your questions. ern Mariana Islands Governor Eloy Inos, which I have here, be added to the record
on S. 1237 for the Committee's consideration.
The CHAIRMAN. Very good. Thank you all for your cooperation Thank you, again, for introducing this bill and for holding today's hearing.
here. Let me just kick off a few issues that seem important to Sen- . The CHAIRMAN. Congressman, thank you so much.
ator Murkowski and me.
We enjoyed talking with you as well in the office here recently
Mr. Kagan, first, I don't think it's exactly an atomic secret that
and appreciate your good work.
China wants to expand its sphere of infuence in this part of the . ,The Honorable Congressman Pierluisi.
world. What would be the implications of failing to approve an
agreement with respect to China? STATEMENT OF HON. PEDRO R. PIERLUISI, RESIDENT
Mr. KAGAN. The broader question is not just China, but it's about COMMISSIONER TO CONGRESS, PUERTO RICO
U.S. ability in the region.
The CHAIRMAN. Allies in the region. Mr. PIERLUISI. Chairman Wyden, Senator Murkowski, Senator
Mr. KAGAN. I think that what the region sees is that we have Risch, thank you for inviting me to testify.
a long standing relationship with Palau. One that's been beneficial I want to begin by thanking the committee for scheduling a sepa-
to both countries and which gives us, as Deputy Assistant Sec- rate hearing on the political status referendum that was held in
Puerto Rico and on the Federal Government's response to that ref-
retary of Defense Singh has said, very valuable national security
prerogatives in a critical part of the world. erendum. I look forward to testifying about that subject next
month.
I think that the broader question really is if the U.S. is unable
With respect to the present bill I want to express support for 3
to move forward on something that we have signed that this will :
particular provisions. *
call into question the credibility both of our own word, but more
Section 8 requires the GAO to evaluate the annual estimates of -
broadly of our engagement in the region and our commitment to
revenues and expenditures of the territory governments and to
the region. make recommendations for improving the process by which those
So I think the question of China is obviously an important one.
estimates are developed. Puerto Rico faces severe economic chal-
I think it's worth noting that China has expanded its engagement r
lenges. Based on all indicators Puerto Rico has lagged far behind
in the region. But that said, it's done so in many other parts of the
the States for at least 4 decades. The income gap between the terri- 6
world commensurate with its own rise. tory and the States continues to widen. -
I think that the broader question really is one of U.S. credibility
Puerto Rico's population decreased by nearly 4 percent between
and the fact that people are watching. This is a question that we 2000 and 2012. With hundreds of thousands of island residents re- 1
are asked regularly about the Palau Compact by other Pacific locating to the States in search of economic opportunity. This exo-
States, some other states in the Asia Pacific. I think that we will
dus is likely to worsen because the governing party in Puerto Rico
not stand in good stead with our allies and partners if we're not has enacted a series of laws that purport to stabilize and strength-
seen fulfilling this.
en the economy but are so poorly conceived that they can be ex-
The CHAIRMAN. Alright. pected to produce the opposite effects.
Ms. Sobeck, I think it's pretty obvious that in today's political re- As this committee knows I support statehood for Puerto Rico and
alities, you need an offset for a piece of legislation like this. do so in meaningful part because history shows that every territory
I'd like to ask that you and your staff commit to working with that joins the Union experiences a substantial increase in its eco-
my staff and with Senator MuI·kowski's staff so that 2 weeks from ~ nomic activity and standard of living. Statehood is the only status
now we have found a politically viable offset. Will you commit to
doing that? that will enable Puerto Rico, on an enduring basis, to reduce unem-
ployment, attract investment, retain talent, promote growth and
MS. SOBECK. I'm happy to commit myself and my staff to work manage our deficits and debt. However, until Puerto Rico becomes
with you. I hope that we can achieve the goal. But we will certainly an equal member of the American family, I must take all reason-
engage. We really appreciated working with your staff on this able steps to strengthen the island's economy within the con-
issue. straints imposed by our territory status.
So yes, we commit to work with you. Absolutely. My support for section 8 is rooted in this responsibility. The pro-
The CHAIRMAN. I don't want to make this a brutal forced, star vision will address a problem that has been witnessed in Puerto
chamber proceeding, but we really need you all to dig in with us. Rico. That is the tendency for the local government to overestimate
We've got to get this done. revenue and underestimate expenditures.
I'm going to ask some other questions with respect to the offsets, For example, between 2006 and 2008 the Puerto Rican govern-
but we need you all to really dig in with us. ment overestimated revenue by an average of nearly $900 million
....
22 51
annually. Between 2009 and 2012 this practice came to an end machine readable passports (instead of allowing them to come to the United States
with actual revenues slightly exceeding projected revenue. How- If the bilateral Agreement between our two countries is not implemented, the
without passports).
ever, economists and rating agencies have expressed concern that trust fund would be unable to provide a steady outlay of $15 million a year, from '
the Puerto Rico government may now be returning to its old ways. now until 2044, which was the intended purpose of the Compact negotiators, backed
When a government makes inaccurate budget projections it has by Senate and House concurrence, in the 19805. To ensure smooth continuation of
our bilateral relationship as well as the continued economic development and ad-
a cascading effect resulting in larger deficits, excess borrowing,
vance of its self sufficiency, it is crucial we provide Palau the assistance agreed to
credit downgrades, higher interest payments and the diminished in the Compact review.
ability to meet pension obligations and make important investment
decisions in priority areas. I am confident that the GAO can pro- SUPPORTING PALAU'S TRANSITION TO INDEPENDENCE
vide sound advice to help the territory governments with the budg- Our history with Palau began in bloody battle in 1944. It was a sense of duty,
eting process. and the understanding that Palau was important then to our strategy in the Pacific,
that led thousands of Marines ashore to free Palau from colonialism and occupation.
Next, I want to express support for section 6 which requires the Palau remains important now, and that same dutv has led the United States down
Federal Government to establish a team of experts to develop and a lon~ road of partnership with the people of Pafau from liberation to trusteeship
helping implement a plan for each territory to reduce reliance on and, nnally, to independence. That steadfast commitment to our friends has been
imported oil and to transition to cleaner energy sources that will noted not just in Palau, but across the Pacific.
Shortly after the end of World War II, the United Nations assigned the United
improve the environment and lower electricity costs. States administering authority over the Trust Territory of the Pacific Islands, which
A typical territory resident pays two to 3 times more for elec- included Palau and island districts of Micronesia that we had liberated from Japa-
tricity than the U.S. national average. As an island that does not nese occupation. Palau adopted its own constitution in 1981, and the governments
produce oil, coal or natural gas, Puerto Rico faces the inherent en- of the United States and Palau concluded a Compact of Free Association that en-
tered into force on October 1, 1994.
ergy challenges notwithstanding the progress that was made under With a government modeled on our own, Palau shares our goals for human rights
the last Administration in Puerto Rico which oversaw a nearly 15 and democracy throughout the world. Palau has shown maturity of a much older
percent increase in the use of natural gas and a doubling of the use nation in its democratic processes, which is a testament to the commitment to
of renewable sources. Puerto Rico still generates most of its elec- strong values the people of the Pacific have, and reinforces the value of the Compact
tricity from imported oil. Palau has been a staunch ally to the United States, and it is essential we stand
as a vehicle for transition.
Burning oil pollutes the air and explains why Puerto Rico has by our commitment to the people of Palau. The Palauan people have been loyal and
the highest rate of asthma and other respiratory illnesses in the dedicated partners, but they are concerned about their future and that of their
Nation. Oil is expensive and subject to sudden price shocks. The grandchildren. Palau is as interested in regional and international security as we
are. Failing to affirm the results of the 15-year review of the Compact with Palau
high cost of electricity strains family budgets and harms busi-
is not in our national interest. We appreciate the interest and leadership of this
nesses. Committee in considering this legislation promptly and hope both the House and the
The plans called for by section 6 will help the governments of Senate will pass it before the end of the year.
Puerto Rico and the other territories diversify their energy port- Senator Inouye of Hawaii was perhaps the most important example to the people
folios and reduce electricity rates.
of the Pacific of the American generation that fought in World War II and its after-
math. As his generation passes and other emerging powers seek to increase their
Finally, I want to express my support for section 20 which is influence in the region, passage of this legislation will send a reassuring signal that
drawn from legislation I introduced. Current law authorizes the the United States is and will be engaged in the Pacific and will remain a faitMul
Department of the Interior to support efforts in foreign countries friend and ally through both good and challenging times.
to protect endangered marine turtles. Section 20 would enable the THE IMPORTANCE OF IMPLEMENTING THE AGREEMENT
Department to support such projects in the U.S. territories as well.
Mr. Chairman, Secretary Kerry, and others in this Administration deeply appre-
This is appropriate given that most of the marine turtle species are ciate not only the rich and historic World War II legacy of the Pacific, but also the
found in Puerto Rico. Section 20 empowers the Federal Govern- continuing strategic role those islands and waters play globally. The Administration
ment to provide assistance to preserve this species for present and places great importance on continuing our strong alliance with Pacific Island part-
future generations. ners. I recently visited the battlefield of Peleliu, where more than 1,700 U.S. Ma-
rines and other servicemen were lost liberating the island, a necessary step towards
In closing, I appreciate this committee's attention to the fiscal, the eventual liberation of the Philippines and the seizure of other key island bases
energy and environmental concerns in the territories. I look for- that helped bring the war to a close. I met with Palauans who are working with
ward to working with you to advance this bill and to make any ad- partners in the United States to identify personal effects that still remain on the
ditions that may be appropriate. battlefield and to return them to family members in the United States nearly sev-
Thank you. connections that have been forged in the decades since World War II. In the current
enty years later. These efforts are emblematic of our shared history and the deep
[The prepared statement of Commissioner Pierluisi follows:] political environment in the Pacific region, it is paramount that we maintain those
ties and continue to develop our strategic framework for a peaceful future in the
PREPARED STATEMENT OF HON. PEDRO R. PIERLUISI, RESIDENT COMMISSIONER TO region. Our investment will help to ensure that Palau becomes financially inde-
CONGRESS, PUERTO RICO pendent over time and continues to stand with us as a loyal, trustworthy, and demo-
cratic ally.
Chairman Wyden, Ranking Member Murkowski and Members of the Committee: In today's dynamic Pacific environment, others in the region closely watch how
thank you for inviting me to testify about S. 1237, the Omnibus Territories Act. the United States treats its new and old friends. Changing out engagement with
Before I begin, I want to thank the Committee for agreeing to hold a separate Palau could affect the way others view our commitment to the region. It is likely
hearing, originally scheduled for June 11th and rescheduled for August 1st, on the that Palau would face offers of assistance from other nations expanding their reach
referendum that was held last November in Puerto Rico regarding the territory's po- in the Pacific to fill the void we would leave.
....
50 23
its Exclusive Economic Zones (EEZ), facilitate mutual economic benefits and allows litical status, and on the federal government's response to the historic results of that
us to guard and protect our long-term interests in the region. referendum. I look forward to testifying before the Committee about that subject
With respect to the second goal of maintaining and strengthening our relation- next month.
ship, Palau is among our strongest supporters in regional and multilateral fora. In With respect to the legislation before the Committee today, I will use my time to
the former, Palau has been an ardent advocate for enhanced U.S. participation and express support for Sections 6,8 and 20 of the bill.
engagement in the Pacific Islands Forum, the Secretariat of the Pacific Community Section 8 would require the GAO to evaluate the annual estimates of revenues
and other regional bodies. Palau has been a constructive partner in our successful and expenditures of the territory governments, including the government of Puerto
effort to work with Pacific Island nations to extend, and eventually renew, the Rico, and to make recommendations for improving the process by which those esti-
South Pacific Tuna Treaty.
mates are developed.
At the 67th General Assembly of the United Nations in 2012, Palau's voting coin- Puerto Rico faces severe economic challenges. Based on all economic indicators,
cidence with the United States on all votes was approximately 97 percent, which the territory has lagged far behind the states for at least four decades, and the in-
is markedly higher than 74 percent for the United Kingdom, 71 percent for Aus- come gap between Puerto Rico and the states continues to widen. Puerto Rico's pop-
tralia, 57 percent for Japan, and 61 percent for the Republic of Korea. Despite an ulation decreased by nearly four percent between 2000 and 2012, with hundreds of
increase in assistance from others interested in enhancing their engagement with - thousands of island residents departing for the states in search of improved eco-
the region, such as China, Russia, and the Arab League nations, Palau has not only nomic opportunities. This exodus is likely to worsen, because the governing party
supported the United States on Israel and Cuba-related votes but was one of only
in Puerto Rico has recently enacted a series of laws that purport to stabilize and
a handful of nations that voted with the United States on the divisive motion to strengthen the economy, but are so poorly conceived that they can be expected to
have the opposite effect.
grant Palestine "non-member observer state" status in the UN. Palau has supported
As the Members of this Committee are aware, I support; statehood for Puerto Rico,
UN resolutions seeking to combat the spread of weapons of mass destruction, and
and do so in meaningful part because history shows that every territory that joins
joined in efforts to address systematic human rights abuses in North Korea, Syria,
the Union experiences a substantial increase in its economic activity and standard
and Iran.
of living. I believe statehood is the only status that will enable Puerto Rico, on an
OUR PARTNERSHIP EXTENDS BEYOND DEFENSE enduring basis, to reduce unemployment, attract investment, retain talent, promote
growth, and manage our deficits and debt.
The importance of our strong relationship with Palau is not limited to defense. However, until the day-not too far off, in my estimation-that Congress wei-
We work closely with Palau in the fight against international crime and terror. In comes Puerto Rico as a full and equal member of the American family, it is my re-
2009, Palau resettled six ethnic Uighur detainees from Guantanamo, the first coun- sponsibility to take all reasonable steps to strengthen the Island's economy within
try to stand up to support our efforts, when few other countries were willing to do the severe constraints imposed by the current territory status.
so. Palau was our first island partner to sign the U.S. ship rider and ship-boarding My support for Section 8 is rooted in this obligation. The provision will help ad-
agreements that are successfully increasing maritime surveillance and law enforce- dress a problem that has been witnessed in Puerto Rico and other territories, and -
ment cooperation in the Pacific Islands. that is the tendency for the local government to overestimate the amount of revenue .6
that will be collected and to underestimate the amount of government expenditures
SHARED RESPONSIBILITY AS A COMPACT PARTNER that will be made in the coming fiscal year. For example, between Fiscal Year 2006
and 2008, the Puerto Rico government overestimated revenue by $1.1 billion dollars,
The original process that led to our Compact with Palau was based on a solemn $822 million dollars, and $718 million dollars, respectively. Between Fiscal Year .6
promise to help this young nation through financial, security, and other assistance 2009 and 2012, this practice came to an end, with actual revenue exceeding fore-
to achieve self-governance and a sustainable economic development path. The effort casted revenue by a fairly small amount each year. However, economists and rating
that has gone into the 15-year Compact review and the positive contribution of
agencies have expressed concerns that the Puerto Rico government may now be re-
Members of both chambers of Congress to work towards implementation of those ar-
turning to its old ways.
rangements is a symbol of our good faith and partnership, not just in Palau, but When a government makes inaccurate budget projections, it has a negative, cas-
also among all our Pacific partners. cading effect-resulting in larger deficits, excess borrowing, credit downgrades,
The timing of this review could not be more important. We are now at a point higher interest payments, and the diminished ability to meet pension obligations
where the goal of self-governance and democracy in Palau is firmly in place. The and make important investments in education, infrastructure, public safety and
goal of sustainable economic development and independence, however, remains a other priority areas. I respect the work of the GAO, and am confident that their
work in progress. The tiered nature of the support agreed to in this 15-year review sound advice will help the governments of Puerto Rico and the other territories bet-
agreement is designed to reduce Palau's dependence on U.S. direct economic assist- ter manage their finances.
ance and assist Palau in moving towards sustainable economic independence. Im- Next, I want to express support for Section 6 of the bill, which would require the
portantly, it also requires the Palauan government to continue undertaking serious federal government to establish a team of experts to develop--and help implement-
economic and fiscal reforms, and, should the United States determine that progress an action plan for each territory to reduce reliance on imported oil and to transition
towards such reform is inadequate, we are able to withhold further assistance until to clean energy sources that will improve the environment and lower electricity
they are implemented. costs.
Our Compact with Palau took effect in 1994. It does not have a termination date A typical territory resident pays two to three times more for electricity than the
and requires a review on the 15-year, 30-year, and 40-year anniversaries. The direct U.S. national average. As an island that does not produce oil, coal or natural gas,
economic assistance provisions of the Compact, however, expired on September 30, Puerto Rico faces inherent energy challenges. Notwithstanding the progress that
2009. Our two governments worked closely over 20 months of discussions and nego- was made under the last administration in San Juan-which oversaw a nearly 15
tiations to conclude the 15-year review, which resulted in an Agreement, signed by percent increase in the use of natural gas and a doubling of the use of renewable
former Deputy Assistant Secretary Frankie Reed and former President Toribiong in . sources like solar and wind-Puerto Rico continues to generate most of its electricity
September 2010. If approved, S. 1268 will implement the outcomes of that Review from imported oil.
and is the manifestation of the shared commitment between our two governments. Burning oil pollutes the air and is a major reason why Puerto Rico has the high-
In support of our relationship with Palau, the Departments of Defense, State and est rate of asthma and other respiratory illnesses in the United States. Oil is expen-
Interior resubmitted draft legislation to Congress. The Agreement provides a glide sive and subject to sudden price spikes based on world events outside our control.
path for Palau to move from reliance on the over $18 million it has been receiving The high cost of electricity strains family budgets and is regularly cited as the main
to a sustainable $15 million level, provides for U.S. contributions to the Trust Fund burden facing current and prospective island businesses.
from FY 2013 through FY 2023 and decreases the amount Palau may withdraw The action plan called for by Section 6 will help the governments of Puerto Rico
from the Trust Fund during this period, to allow the Trust Fund to grow. The and the other territories diversify their energy portfolios and reduce electricity
Agreement has other provisions that supplement the Compact, resulting from a re- rates, thereby improving the environment and bringing relief to consumers.
view of how the Compact worked over its first 15 years. The Agreement will also Finally, I want to express my support for Section 20, which is drawn from legisla-
requi re Palauan nationals coming to the United States under the Compact to have tion I introduced. Current law authorizes the Department of the Interior to support
....
24 49
efforts in foreign countries to protect endangered marine turtles. Section 20 would PALAU: A FRIEND AND RELIABLE PARTNER
enable the Department to support such projects in the U.S. territories as well. This
is appropriate given that four of the seven species of marine turtles are found in Mr. Chairman, the vast stretch of the Pacific and the island countries that reside
within it share an integral connection to our western border and are critical to our
Puerto Rico. The territories are home to many natural treasures. Section 20 empow-
ers the federal government to provide assistance to preserve one of these treasures national security. Linking many of our close friends and allies, from Japan and Aus-
for present and future generations. tralia to Palau, Papua New Guinea, and Tonga, the Pacific region forms a crucial
In closing, I want to express my appreciation to this Committee for its attention security arc that stretches from California to the Philippines, from Alaska to New
to the fiscal, energy and environmental concerns in the territories. I look forward Zealand. Our presence and ties to our partners in the Pacific not only safeguard our
to working with the Committee to advance this legislation and to make any addi- security interests, they also guarantee access to the critical sea lanes through which
tions to the bill that may be appropriate. much of our trade flows. Among our many friends and partners in the region, we
Thank you. have perhaps none stronger than Palau, a country for which we paid a steep price
in blood and treasure to liberate in 1944.
The CHAIRMAN. Very good. Thanks so much. Our relations with our Pacific partners are unfolding against the backdrop of a
Ms. Sobeck, representing the executive branch. We have had 4 shifting strategic environment, where emerging powers in Asia and elsewhere seek
legislators. We have now the executive branch. to exert a greater influence in the Pacific region, through development aid, people-
to-people contacts, and security cooperation. There is continued uncertainty in the
STATEMENT OF EILEEN SOBECK, ACTING ASSISTANT SEC- region about the United States' willingness and ability to sustain the robust forward
RETARY FOR INSULAR AREAS, DEPARTMENT OF THE INTE- presence in the Pacific that has been a hallmark of much of the last 60 years. That
RIOR is why the Administration has put such an effort into increasing our engagement
not only with mainland and maritime Asia, but with the Pacific as well.
Ms. SOBECK. Thank you very much, Mr. Chairman. Thank you With respect to our foreign policy goals in the region, I think we have two critical
tasks that touch on our historic relationship with Palau. First, we have to sustain
for your gracious invitation today. Ranking Member Murkowski
and reinforce our full authority and responsibility for the security and defense of
and Senator Risch, thank you for including me on this distin- Palau. We have no greater responsibility in the eyes of the Palauan people, and I
guished panel. know that we, and the other federal agencies that work with Palau, take that re-
My full statement addresses all of the sections of the bill. In this sponsibility very seriously. Second, we have to ensure that our partners in the Pa-
limited time I will just touch on a few of them without any dis-
cific, including Palau, continue to work with us and support our common goals in
regional and multilateral fora, on everything from fisheries management to human
respect for the ones that I'm leaving out. rights to countering the proliferation of weapons of mass destruction.
First, with respect to section 3 of the bill regarding giving CNMI Under the Compact of Free Association, the United States provides for the secu-
authority over submerged lands out to 3 miles from its coastline. rity of Palau, which occupies a strategic position in the Western Pacific. This secu-
CNMI is the only territory that currently doesn't have authority rity relationship gives us access to Palau and its waters, along with the critical au-
thority to deny such access by military forces and personnel of other nations. While
over, title to its submerged lands. We do support CNMI getting this we have welcomed for many decades a peaceful and positive approach to relations
authority out set out consistent with the January 2010 Presidential in the Pacific by all parties, the relatively modest annual cost associated with the
Proclamation creating the Marianas Trench Marine National proposed legislation is leveraged many times over in the important strategic advan-
Monument. Therefore the Department of the Interior strongly sup- tages this arrangement confers on the United States.
As a result of our security guarantee, Palau does not maintain its own military
ports enactment of section 3. forces, but under the terms of our Compact, their citizens are eligible to, and do,
But we also strongly recommend an amendment that addresses serve voluntarily in the U.S. Armed Forces. Palauan citizens volunteer in the U.S.
the coordination of management as contemplated in the proclama- military at a rate higher than in any individual U.S. state. Approximately 500
tion prior to the transfer of submerged lands to ensure that the is- Palauan men and women serve in our military today, out of a population of about
14,000. We are grateful for their sacrifices and dedication to promoting peace and
land unit of the monument will retain its protections. We look for-
fighting terrorism. Palau has deployed soldiers for U.S. coalition missions and par-
ward to working with the CNMI to ensure that an appropriate ticipated in U.S.-led combat operations in the world's most difficult and dangerous
agreement is worked out. places, including Mghanistan and Iraq, where seven Palauans have lost their lives
With respect to section 6 of the bill which calls for energy action in combat.
plans for each territory and the FAS. We believe that this language
Palau's Ambassador to the United States, Hersey Kyota has a son, who is a staff
sergeant in the Army and a daughter, who is also a staff sergeant in the Air Force.
is largely duplicative of an existing law, Section 604 of Public Law He also has one nephew, who is a sergeant in the Marine Corps and another neph-
96-597, except that the Secretary of the Interior would now be re- ew in the Army. Kyota also has other close relatives in the U.S. Armed Forces. The
sponsible for the described energy effort rather than the Secretary son of Minoru Ueki, Palau's Ambassador to Japan, serves in the U.S. Army. Palau
Paramount Chief Reklai has a daughter and son in the Army. Similarly, many other
of Energy. Palauan sons and daughters of other government officials and of ordinary Palauan
However 8 years ago Interior undertook a comprehensive effort citizens served honorably in U.S. military units since the Compact has been in
to study energy needs and is currently supporting energy planning place.
efforts through NREL and financed by our Technical Assistance In addition to our specific responsibility for the safety and security of the Palauan
Program within the Department of the Interior. Our 2014 budget people under the Compact, given the wide range of U.S. strategic interests and equi-
ties in the Western Pacific, security developments in the region require our sus-
includes funds to implement a number of the NREL recommenda- tained presence and engagement. The Reagan Ballistic Missile Defense Test Site on
tions. Therefore the Department of the Interior opposes section 6 Kwajalein Atoll, the presence of U.S. Armed Forces, including the U.S. Coast Guard,
of S. 1237 as duplicative of existing authority and existing actions in Guam and in the waters of the Pacific, and our disaster relief operations through-
and programs being carried out by the Department of the Interior. out the region are all crucial to peace and security not only for the region, but for
the United States. Keeping our commitments to Palau, as reflected in S.1268, rein-
With respect to section 7, which includes provisions for estab-
forces our defense posture in the Western Pacific, and therefore our strategic inter-
lishing a Chief Financial Officer for the Virgin Islands and a plebi- ests. Working closely with the Palauan government, we are able to better protect
scite of Virgin Island voters on the issue. In the past the Depart- and conserve its resources, while our access to Palauan waters, lands, airspace, and
....
48 25
I think we have worked closely within the Administration, with ment of the Interior has had no objection to such a bill because it
Congress, because we all recognize the importance to doing this. would only have imposed some diminimus interference with self
Time is starting to drag. government of the Virgin Islands. With the addition of the plebi-
The relationship is important to us. It's important from a foreign scite we think that's only reinforced. So at this point the Depart-
policy perspective and to the Department of State because this is ment of the Interior has no objection to the enactment of section
an example of U.S. commitment. The region is watching how we 7.
treat this. With respect to the Low Income Home Energy Assistance Pro-
We've made a commitment. We have yet to fulfill it. So we be- . gram. We are very sympathetic to the concerns that have been
lieve it is important to move forward as quickly as possible. raised by Representative Christensen. Given that the electric rates
Should note that we believe that the agreement, as Acting As- in the Virgin Islands are more than 4 times those on the U.S.
sistant Secretary Sobeck has said, is actually very good for both . mainland, it seems as if payments under the Assistance Act of 3
Palau and for the United States. It deals with some issues that times the mainland amount for a limited period is quite reasonable.
have been raised originally, with the original agreement and has, We would note that in addition the territories of Guam, CNMI
we believe, has strengthened it and make it better for both sides. and American Samoa are also paying significantly higher residen-
One of the key goals for the compact was to get Palau to the tial rates than in the rest of the United States. We would have no
point where it would be able to stand on its own and be economi- objection to the enactment of similar provisions on a fair pro rata
cally viable. We think Palau has made tremendous strides on self basis, some sort of formula that the committee devised for the
governance and democracy. We think that rapid implementation of other territories and that they be included in this section as well.
the agreement will allow it to continue working on economic sus- Section 10 would establish Castle Nugent on St. Croix as a Na-
tainability.
tional Historic Site within the National Park system. A special re-
We do believe that U.S. credibility is at stake and that moving source study has already found that site has met the criteria for
on this will strengthen our overall approach toward the Asia Pa- inclusion in the National Park system. Including this site would
cific and strengthen our rebalance to have greater emphasis on the protect this outstanding cultural landscape. We support that provi-
region. sion.
We have worked closely with you and will continue to do so and Section 11 would include the entire island of St. Croix as a Na- '
really appreciate your strong support for this. tional Heritage Area and we generally support the objectives of this
section. But we would recommend that Congress enact a pro-
Thank you.
[The prepared statement of Mr. Kagan follows:]
grammatic legislation that establishes criteria to evaluate poten-
tially qualified National Heritage Areas and a process for the des- *
PREPARED STATEMENT OF El)GARD KAGAN, DEPUTY ASSISTANT SECRETARY OF STATE, ignation funding and Administration of these areas before desig-
BUREAU OF EAST ASIAN AND PACIFIC AFFAIRS, DEPARTMENT OF STATE nating any additional sites.
With regard to the Guam War Claims Review Commission. We
Chairman Wyden, Ranking Member Murkowski, and Members of the Committee,
thank you for inviting me to appear before you today to testify on the importance understand the importance of this provision. We understand that
of our bilateral relationship with Palau as well as to discuss the Compact with the creative measures being taken to fund it. We recommend that
Palau and proposed legislation approving the results of the mandated 15-year re- broad counsel be taken along Guam leaders.
view of the Compact. Let me just take a moment to thank you for introducing With respect to section 13. While we are mindful and sympa-
S.1268, which is identical to the legislative language proposed by the Administra-
tion to approve the Agreement. thetic of the impacts and we know that this is a huge concern. We
Our relationship with Palau is a key aspect of the Administration's focus on our are very concerned and must object to the provisions of section 13.
engagement, based on our history, our values, and our national interest, with the We believe that there are not the specific and exacting standards
Asia-Pacific region, and specifically on ensuring that we increase our engagement that are necessary to determine what the standards for measuring
with Pacific Island nations as we look forward to what the President has called the
"Pacific Century." I know that several members of the Committee met recently with the costs and the benefits incurred by migration to the State of Ha-
the President of Palau, Tommy Remengesau, Jr, and members of the Palau legisla- - waii and the territories and that those must be established before
ture, during his visit to Washington last month. Secretary Jewell, several other anything along those lines could ever be included.
members of the Administration and I met with his team to discuss this legislation,
With respect to matching requirements. Of course we are fine
and other important issues in our relationship, during that visit. I was fortunate
during the first few weeks in my current position, almost exactly one year ago, to - with those provisions with respect to the Department of the Inte-
be able to travel with then-Assistant Secretary for East Asian and Pacific Affairs rior an increase seems more than reasonable.
Kurt Campbell to the region, including to Palau. Secretary Clinton's participation With regard to the American Samoa plebiscite, Citizenship Plebi-
at the Pacific Islands Forum in August 2012 was the first by a Secretary of State
scite Act, we support that provision. It seems like an auspicious
in its 41-year history and marked a historic high-water mark of engagement by the
Administration with our Pacific partners, including Palau. In Palau, I was able to time to support finding out what the will of the people of American
meet with several senior Palauan government officials, who repeatedly asked about Samoa are with respect to citizenship.
the status of the legislation, passage of which is their highest priority in working Finally, with respect to the marine turtles, we would have to ob-
with the United States. All of these events and meetings have demonstrated the ex- ject to not support section 20 at the moment. While we support the
cellent relationship we enjoy with the people of Palau, the genuine friendship they
share with the United States and the importance the Administration places on this intent for increased funding for turtle conservation in the U.S. ter-
relationship.
ritories, we note that there's already a significant amount of do-
....
26 47
mestic spending for the States and the territories for marine turtle Second, the Defense Department's humanitarian programs have been very well-
received in island communities. These programs primarily focus on the removal of
protection and conservation and that the Turtle Conservation Act
explosive remnants of war from the World War II era, humanitarian projects, and
of 2004 is designed to provide a small amount of funds to foreign
prisoner of war/missing in action operations. DoD's 12-person Civic Action Team ro-
countries. tates through Palau, conducting small-to medium-scale humanitarian and civic ac-
The CHAIRMAN. Why don't you see if you could, Ms. Sobeck, wrap tion projects in the health, education, and infrastructure areas.
up. We just want to ask some questions. Additionally, DoD leads large-scale, multinational, pre-planned humanitarian mis-
Ms. SOBECK That concludes my remarks, Mr. Chairman. sions, such as the U.S. Air Force's Pacific Angel and U.S. Navy's Pacific Partner-
ship, which include medical and engineering projects in remote regions that are con-
The CHAIRMAN. Very good. Thank you. . ducted in close coordination with local communities. For example, in the summer
Congresswoman Christensen, on the electric rate front, as we've of 2010, the USS BLUE RIDGE (LCC-19) treated more than 1,900 Palauans, com-
heard today all the territories are getting just clobbered with these pleted 14 community service projects, and spent more than 1,000 man hours across
high electric rates. I know your constituents have a particularly the three Palauan states of Koror, Peleliu, and Angaur as part of Pacific Partner-
difficult time because of the suddenness of the price spike coin-
ship 2010. Also, the longest running humanitarian campaign in the world, Oper-
ation Christmas Drop, which provides air-dropped supplies to the people of remote
ciding with the departure of HOVENSA, this very large employer islands each year, celebrated its 60th anniversary in December 2012 and continues
and fuel supplier. to assist the remote islands of Palau each year. These humanitarian missions are
So tell us a little bit. I understand you've got some short-term evidence that the Department's engagement in Palau extends well beyond tradi-
plans to cope with this. Why don't you lay out for us what you hope tional security parameters.
to do there?
CONCLUSION
Ms. CHRISTENSEN. If you would visit, especially St. Croix right
In conclusion, U.S. presence and power projection in the Asia-Pacific region con-
now, you would find that many of our businesses have closed. Even tinue to be essential to our national security interests. The U.S.-Palau Compact is
in some areas you'll find that some households are going without a strategic asset for U.S. presence in the Western Pacific, an increasingly important
electricity because of the high cost because we are approximately region. Loss of the defense rights and unfettered access granted to the United States
5 times the national average. under the Compact would adversely affect U.S. national security. Our relationship
So while our utility, the Virgin Islands Water and Power Author- with Palau is unique and reliable. Passage of the proposed legislation approving the
results of the 15-year Compact Review would ensure this important security agree-
ity, is in the planning stages for making a transition to propane ment continues, and would reassure Palau of our sustained commitment to Palau
and then to natural gas. That would probably not happen for an- and its people and of our shared interest in regional and global security. I urge you
other 12 to 18 months. The people of the territory, given our eco- to support the continued security agreement the United States has developed with
nomic conditions and the costs now cannot wait that long. Palau over the years and ask for your support of the proposed legislation.
So one of the areas is increasing the LIHEAP assistance in the Thank you, and I look forward to answering your questions.
territories for a period of time. I have no objection to having it ex- The CHAIRMAN. Very good. Thank you, Mr. Singh.
tended to the other territories who are facing similar high costs. Mr. Kagan.
Another one is increasing weatherization funding so that house-
holds can reduce their use of electricity and thus reduce the costs. STATEMENT OF EDGARD KAGAN, DEPUTY ASSISTANT SEC-
We have another proposal that we're trying to work through the RETARY OF STATE, BUREAU OF EAST ASIAN AND PACIFIC
Farm bill that would transfer funds from a loan program at USDA AFFAIRS, DEPARTMENT OF STATE
to the High Energy Costs Grant Program that they have that
would assist any of the territories that meet the criteria of that
Mr. KAGAN. Mr. Chairman, we're very grateful to you for the op-
grant right now with additional funding to help to lower the cost portunity to come before you and the committee. We're also very
of their electricity. We're working with Senator Stabenow and her grateful to you for your personal interest and your leadership on
staff on that one. the issue of Palau.
We just feel that it's really critical. There's no more important You know, you have spoken very eloquently, as has Ranking
issue to the people of the territory right now than reducing their Member Murkowski, about Palau's importance to the United States
electricity costs. It is creating safety hazards for families. It is ham- . and why the relationship has been beneficial to both countries. So
pering our economic recovery and making it very difficult. there's no need to repeat that.
I would add that the House Energy and Power Committee, yes- What I will say is that 3 years ago the State Department, as
terday, passed my bill to create the team of technical experts that . called for under the original 1994 Palau Compact of Free Associa-
is included in this bill today. We feel that that is critically impor- tion, negotiated an agreement to extend and revise the assistance
tant. EIA has been very helpful over the years, but we still are fac- under the compact to provide a more economically sustainable fu-
ing 50 cents and 54 cents costs. When we started to look at pro- ture for Palau. This was done in very close consultation with Con-
pane and natural gas, because they are focused on renewal, they gress, as well as, obviously, with the Departments of Interior and
were not able to really expand from that to help us look at the full Defense and was mandated under the original compact.
range of fuel sources because we, like the President, we believe in We have since worked very closely with Congress to try and find
an all of the above. We still don't have an integrated resource plan a pathway to be able to move forward on this because I think we
that would help us put the best mix of fuel sources together and all share the goal of implementing the agreement and fulfilling our
create energy for the lowest cost for our territory. commitments.
....
46 27
We must take note of critical security developments in the Pacific that require the The CHAIRMAN. Let me see if I can get some of your other col-
Department's sustained presence and engagement. Broadly speaking, numerous
countries are actively courting Pacific Island States, seeking security opportunities
leagues into this discussion. But I very much want to work with
that mav challenge the security status quo in the region, by increasing their eco- you on these energy issues and know you've put a lot of time into
nomic, diplomatic, and military engagement with the island States. These critical this.
security developments require sustained U.S. presence and engagement in the re- Ms. Bordallo, as you know various versions of the Guam War
gion. Our relationship with Palau would be reinforced under the Compact and would
ensure the United States the extraordinary advantage of sole military access to Claims issue have been discussed here in the Senate over the
Palau. For these reasons, it is important for the U.S. Government to sustain this years. We've talked about the issues with respect to the price. Tell
advantage. . us your take with respect to how the text of the Guam War Claims
Since the Compact of Free Association between the Government of the United issue in the Omnibus Territory bill is going to get us over the chal-
States of America and the Government of Palau entered into effect in 1994, the
United States has taken full responsibility for the security and defense of Palau. lenges we've seen in the past?
This unique security arrangement has created a steadfast and reliable partner that . I know you're trying very hard to be creative on this.
helps the United States advance its national security goals in the region. Ms. BORDALLO. Thank you. Thank you, Mr. Chairman.
PALAU IN THE REGIONAL SECURITY CONTEXT First let me correct the record. I mentioned that we represent,
I would also like to highlight the extraordinary service of Palauans in the U.S. we delegates and the Resident Commissioner here, represent 1.5
Armed Forces and contributions to U.S. security. Under the provisions of the Com- million. It's 4.5 million thanks to the huge population of Puerto
pact, Palauans are able to serve in the U.S. Armed Forces. Sadly, six Palauans have Rico. But I do want to emphasize that, that we are American citi-
sustained casualties fighting on the battlefield in Afghanistan and Iraq since the zens living in U.S. jurisdictions.
terrorist attacks of September 11, 2001. Their sacrifice in the defense of the U.S.
homeland as well as U.S. and Coalition security interests around the world should The war claims is very important to me, Mr. Chairman. All of
not go unnoticed. Furthermore, in 2009, Palau stepped up to offer resettlement of my predecessors, beginning with Mr. Won Pat, which he was our
some of the detainees from Guantanamo Bay at a time when other countries were first, have tried to get this through. The immediate prededessor,
hesitant to take these individuals.
Most notably, our commitment to the Compact with Palau allows the Department Dr. Underwood, introduced legislation to establish a commission.
to leverage Palau's strategic geopolitical position to sustain U.S. security interests We have followed the rules all along the way.
in the region. The United States exercises full authority over and responsibility for I came into office, but there wasn't funding for this commission.
the security and defense of Palau, an arrangement similar to those that we have So we received the funding, established a commission. They met
with the Federated States of Micronesia and the Republic of the Marshall Islands.
With this authority and responsibility, the United States is entitled to sole military several times, had meetings, public hearings, back in Guam and
access to the lands, water, and airspace of Palau. Our current security arrangement decided, very, very thoroughly that we were not treated, you know,
attords us expansive access, which will be an increasingly important asset in the in the right way. We deserved to be given some compensation and
defense and security interests of the United States in the Asia-Pacific region in com-
ing years. The Department recognizes the strategic value of the Compact, and we
recognition for what we went through during World War II.
hope to continue to utilize it to serve our national security interests. Now the cost has come up, Mr. Chairman, at first. Incidentally
We have growing national security interests and equities in the Western Pacific, this bill, 44, has gone through the House 5 times.
a region that la traditionally overlooked and undervalued. Together with the two Once by an outright vote. Other times it was included in the Na-
other Compact States, the Federated States of Micronesia and the Republic of the
Marshall Islands, Palau forms part of an important security zone under exclusive tional Defense Authorization Act.
U.S. control that spans the entire width of the Pacific when we include Hawaii and Then it came over to the Senate. We took out a section there of
the U.S. territories-Guam, American Samoa, and the Commonwealth of the North- survivors of those who died during the war and that was objection-
ern Mariana Islands. Palau's location makes it an important part of the U.S. stra-
able to one of the Senators. So we removed that. I went back to
tegic presence in the Asia-Pacific. The Palau Compact affords us strategic posi-
tioning in a country with a unique geopolitical position in the Asia-Pacific region. Guam and checked with our people. They agreed it's alright.
The region's lack of political and security infrastructure has given rise to a trend So that was removed. Then the last time I went down on the
of growing transnational crime, which underscores the importance of continued DoD Senate Floor we were asked for an offset. Now we have come up
engagement in the Western Pacific. With this in mind, the Department seeks to de-
with an idea for an offset.
velop creative ways to remain strategically engaged in the region.
So we have done everything we can. It is very, very important
U.S.-PALAU DEFENSE RELATIONS to Guam. Although there are very few survivors now, the CBO last
Recognizing that Palau has no military and only limited law enforcement capabili- estimated in 2010 that the bill would cost about $100 million. But
ties and resources, the Department's engagement with Palau primarily focuses on that was before they had the 2010 census data.
helping them develop maritime security and humanitarian assistance capabilities.
First, maritime security has been one of the most fruitful areas of cooperation be- - So now, we have roughly estimated off informal surveys that we
tween our two nations. Palau's Exclusive Economic Zone (EEZ) is part of the did several years ago that the cost would be around $80 million.
Pacific's richest fishing grounds and has traditionally faced serious problems with Again, this is informal.
foreign exploitation of the fishery resources. Large numbers of far-ranging fishing
As we speak many of the survivors are dying. They are in their
vessels from other pacific nations threaten encroachment, seeking access to Palau's
abundant and lucrative tuna fishing areas.
80s and 90s now. I just feel that, you know, as long as I'm a mem-
To combat illegal fishing, the U.S. Coast Guard has entered into a shiprider ber of the Congress, I hope we will see this through.
agreement with Palau, which enables Palauan security officials to embark on It's been a thorn in the side of many of our local people. They
transiting U.S. Coast Guard vessels to conduct maritime patrol and enforce Palauan
fishing laws in its enormous, under-patrolled EEZ. This kind of shiprider agreement
feel that other jurisdictions, the CNMI were given their recognition
allows the U.S. Coast Guard to play a more active role in developing partner law and compensation for what they went through. With that I just feel
enforcement capacity of the island States. that it's very, very important to where I am to get it through.
....
28 45
The CHAIRMAN. I'm over my time. I want to recognize my col- authority and responsibility the United States is entitled to sole
leagues.
military access to the lands, water and air space of Palau.
But we will work very closely with you, Ms. Bordallo. I know this Our current security arrangement under the compact affords us
has just gone on and on and on. It's time to get a resolution of it. expansive access which is increasingly an important asset in the
To my other colleagues, Congressman Sablan and Congressman defense and security interests of the United States in the Asia Pa-
Pierluisi, we may give you some questions in writing. cific region. Given the increasing importance of the Asia Pacific
Both of you have given excellent presentations. overall, we are in the early stages of a rebalance toward the region
I know that Congressman Sablan, you have some issues with re- . and U.S. presence and power projection in the Asia Pacific is in-
spect to the deadline on section 4 of S. 256 and some of the con- creasingly essential to our national security interests. The U.S./
cerns that could cause a hardship if this isn't resolved quickly. Palau compact, therefore, is a strategic asset for U.S. presence in
So all of you have given excellent presentations. . the Western Pacific.
Let me recognize, Senator Murkowski now and then Senator Loss of the defense rights and unfettered access granted to the
Manchin. United States under the compact would certainly adversely affect
Senator MURKOWSKI. Thank you, Mr. Chairman. U.S. national security. The relationship we have with Palau is
As I listen to each of you present here on these issues I can't unique and reliable and it's an important piece of our overall ef-
help but be reminded that it was just several decades ago that forts to implement this rebalance and to have a steady and strong
Alaska was in the same situation. We were a territory. We were security presence in the Asia Pacific.
treated like a territory. Failure to implement the review agreement would also send a
We've made some progress as a State. Some would say we have poor signal to the region about the United States' commitment and
done some amazing things. But yet as I listen to your issues and ongoing commitment to regional security.
your priorities, they are still so much the same as we face in Alas- Passage of the proposed legislation approving the results of the
ka.
15 review would ensure that our important security agreement con-
The high cost of energy, even though we are an energy producing tinues and reassure Palau of our sustained commitment to Palau
State, unlike Puerto Rico, the Virgin Islands, where you are not and its people and our shared interests in regional and global secu-
able to produce. We're able to produce and yet we still have some rity.
of the highest energy costs in the 50 States. In one village, Lime So I urge you and the members of the committee to support the
Village, it is the highest cost per capita or per kilowatt/hour. The agreement and to support the proposed legislation.
folks there in that village are paying $1.40 a kilowatt hour. It's not Thank you.
sustainable.
[The prepared statement of Mr. Singh follows:]
It's not, as you know, Congresswoman, you can't afford to live in
these places. So many of our rural communities, our rural villages, PREPARED STATEMENT OF VIKRAM J. SINGH, DEPUTY ASSISTANT SECRETARY OF DE-
are facing energy costs in excess of 40, 50 cents a kilowatt hour. FENSE FOR SOUTH AND SOUTHEAST ASIA, OFFICE OF THE SECRETARY OF DEFENSE
They cannot continue to live. FOR POLICY, DEPARTMENT OF DEFENSE
It's a different situation. They don't need the air conditioning, Chairman Wyden, Ranking Member Murkowski, members of the Committee,
but they need the heat. So at the end of the day it all comes down thank you for the opportunity to appear before you to discuss the importance of the
to being able to live in a region, in an area. Palau Compact Agreement.
The Congressman from American Samoa, good friend, spoke to Since its enactment in 1994, the Compact has served as an important foundation
- for our security strategy in the Asia-Pacific region, providing the United States with
the issue of the cost benefit ratio that you face. It's pretty tough critical access, influence, and strategic denial of access to other regional militaries.
to meet a ratio that seems reasonable when your costs are so high Our Compact with Palau, coupled with our compacts with the Federated States of
because of transportation, small population numbers. It's never Micronesia (FSM) and the Republic of the Marshall Islands (RMI), has enabled DoD
going to pencil out. So we lose every sindle time. to maintain critical access in the Asia-Pacific region. The Compact of Free Associa-
tion between the United States and Palau is important to allowing the Department
You also mentioned the issue of meeting the match, the local
to continue to benefit from the security arrangement afforded by the Compact.
match. Again, when you don't have significant population, it's just Today, I would like to discuss the importance of Palau and the Compact to pre-
really difficult to be in there and competing. serving U.S. national security interests in the Asia-Pacific region.
So please know that I share the frustration that so many of you . PALAU'S CONTRIBUTIONS TO U.S. AND GLOBAL SECURITY
have as you try to represent those in your respective territories. We
have a lot of work to do together. Let me begin by discussing Palau in the context of the regional security environ-
ment in the Western Pacific. The Pacific Islands region is sparsely populated, phys-
I'd like to ask you, Congressman Sablan, about this immigration ically isolated, and geographically widespread. However, Palau lies at a pivotal
transition period. You mentioned it in your comments. It's my un- crossroad in the Pacific, an area near critical sea lines of communication and rich
derstanding that the Secretary of Labor doesn't need to make a de- fishing grounds. It is also located directly in the so-called "Second Island Chain"
cision on the extension until 180 days before the transition period from Mainland Asia, relatively close to all of the major East and Southeast Asian
ends there at the end of the year 2014. powers. With our strategic interests and equities shifting more toward the Asia-Pa-
cific region, having Palau as a strong partner in the Pacific is increasingly impor-
So, OK, technically we've got a period of time here. But what tant to maintaining military, as well as political and diplomatic, leadership in this
does waiting do to the local businesses, the economy, if you don't quickly evolving strategic environment.
....
44 29
the trust fund may only be used for education, health, administration of justice know what the decision is going to be? Have you given any consid-
and public safety.
eration to what the impact might be with the situation in terms of
Continuing Cooperation just really not knowing whether this transition is going to be ex-
The United States and Palau will work cooperatively on economic reform. The tended?
Agreement requires the two governments to establish an advisory group to rec- Mr. SABLAN. Yes. Thank you. Thank you very much for the ques-
ommend economic, financial and management reforms. Palau is committed to adopt- tion.
ing and implementing reforms. Palau will be judged on its progress in such reforms
as the elimination ot operating deficits, reduction in its annual budgets, reducing Yes, the impact is serious. At a tiine when we're just beginning
the number of government employees, implementing meaningful tax reform and re- . to see an uptake in our economy. In the last study we saw an up-
ducing subsidies to public utilities. take of 2.3 percent.
Palau's progress in implementing reforms will be addressed at annual bilateral Basically grateful to Inos spending, it was territory government
economic consultations. If the government of the United States determines that
Palau has not made significant progress on reforms, the United States may delay . spending. Too recent the family beginning to pick up. Businesses
payment of economic assistance under the Agreement. need to make a decision.
The Agreement also continues to provide Palau with access to other United States Obviously the present law says that the Secretary of Labor has
services and grant programs, including the United States Postal Service, the Na-
to make a decision by 180 days before, but look, we've all, you
tional Weather Service, and the Federal Aviation Administration. The Postal Serv-
ice moves mail between the United States and Palau, and offers other related serv- know, we've seen, we know the bureaucracy like to wait until the
ices. Palau maintains its own postal service for internal mail delivery. The National very last minute to make decisions. But we would like to treat
Weather Service reimburses Palau for the cost of operating its weather station in businesses and workers in the Northern Marianas better than that
Palau, which performs upper air observations twice daily, as requested, for the pur-
just out of common decency. Businesses need to plan out. Airline
pose of Palau's airport operations and the tracking of cyclones that may affect other
United States territories, such as Guam. The Federal Aviation Administration pro- charters need to be arranged. Hotel rooms need to be booked. They
vides aviation services to Palau, including en-route air traffic control from the main- need to decide, to know, whether those workers are going to be
land United States, flight inspection of airport navigation aids, and other services. there.
The proposed legislation will also allow the continuance of other Federal program The Department of Homeland Security has said the number of
services currently available to Palau under separate authorizing legislation, includ-
ing programs of the Departments of Education and Health and Human Services. workers, CW workers in the Northern Marianas at 15,000 up to
The general authorization for Palau to receive such services was created by the 2014. So we know that we can't zero this out immediately on De-
Compact, but individual program eligibility has been created by specific laws that cember 31, 2014. We know that they will have to just make an ex-
include Palau as an eligible recipient.
tension, recently, consistent with the law. We're just urging them
Even as the Administration awaits congressional approval of the agreement, the
Department of the Interior has remained engaged with Palau. Palau participates in to do so. They cari't wait until 180 days just because that's what
OIA's technical assistance and other programs, and is a partner in regional forums the law says.
supported by OIA. Palau is also receiving assistance from 0IA to repair sections of But we've been trying to work with them. Now we finally had a
the Compact Road.
The Administration looks forward to continuing the United States partnership
meeting. We got nothing from that meeting really except, you
with Palau. The Department of the Interior is proud of the contribution the United know, just a lot of meeting. We really need to continueto urge
States has made to the success we call Palau. We look forward to future progress them. So we're trying to include that in the language.
over the period of the new agreement. Thank you very much. I hope I have answered your question,
The CHAIRMAN. Thank you. Senator.
Mr. Singh. Senator MURKOWSKI. You did. I appreciate that. It would be
helpful if you could get something from that meeting in terms of
STATEMENT OF VIKRAM J. SINGH, DEPUTY ASSISTANT SEC-
an indication as to where they might want to go.
RETARY OF DEFENSE FOR SOUTH AND SOUTHEAST ASIA,
My time is expired. But I want to ask very quickly to Congress-
OFFICE OF THE SECRETARY OF DEFENSE FOR POLICY, DE-
woman Bordallo regarding the Guam War Claims language.
PARTMENT OF DEFENSE
You've mentioned that given the very specific beneficiaries of
Mr. SINGH. Thank you, Chairman Wyden for inviting me to tes- these war claims and the fact that these individuals are dying off
tify with my colleagues from State and Interior to talk about the . at a rate. That you initially anticipated about $100 million would
importance of the Palau Compact Agreement to the Department of be necessary. Now it's down to 80.
Defense. Given what we're seeing in terms of the military buildup so the
Since its enactment in 1994 the Compact has served an impor-
 additional funding that would then come under this section 30.
tant piece of our security strategy in the Asia Pacific region pro- How many years of funding do you anticipate you would need to
viding the United States with critical access, influence and the cover these war claims?
strategic denial of access to other regional militaries. Have you done an assessment on that?
Our compact with Palau coupled with our Compacts to the Fed- Ms. BORDALLO. No, we haven't done that. But it's a good ques-
erated States of Micronesia and the Republic of the Marshall Is- tion.
lands enable DOD to maintain critical access in the Asia Pacific. However, I do want to point out, Senator, that we do have, we
The United States exercises full authority over and responsibility have talked to the Guam legislature and the Governor about this
for the security and defense of Palau, an arrangement similar to and have explained it to them very thoroughly. They seem to be
what we have with Micronesia and the Marshall Islands. With this on board with this.
....
30 43
We have had occasions where they've said they've agreed to it. States assistance, including access to United States Federal domestic programs and
I do want you to know that. services.
From the perspective of the United States, the viability of the Compact Trust
The point is that we would take these section 30 moneys until Fund was of paramount concern. The economies of Pacific islands are always fragile;
such time this amount is covered and the years that it would take? their size, distance from markets and relative lack of resources make growth a pe-
I really couldn't. We'd have to know how much money the military rennial problem. Although Palau has some relative advantages in contrast to other
is going to contribute to the section 30 funding. Pacific island countries, the Compact Trust Fund was established with the intention
of providing a relatively secure revenue base for Palau's government through fiscal
We could certainly let you know that if we could look at it. But year 2044. As the 15-year review began, Palau's trust fund, which had earned
it's a very good question. roughly 9 percent annually since its inception, had suffered significant losses. As
Senator MURKOWSKI. I think it might be helpful. GAO reported in 2008, it was uncertain that the trust fund could pay $15 million
annually to the Government of Palau through fiscal year 2044.
Ms. BORDALLO. Yes. We will want to be sure that we go back to
the previous. Once it's covered that we then, the section 30 funding Compact Agreement
with addition to the military, will be back in the government of The condition of the Compact Trust Fund, the need for fiscal and economic re-
forms, and the goal of strengthening conditions for private sector growth became the
Guam coffers. focus of the bilateral review. The Agreement Between the Government of the United
Senator MURKOWSKI. Thank you. Thank you, Mr. Chairman. States of America and the Government of the Republic of Palau Following the Com-
The CHAIRMAN. Thank you, Senator Murkowski. pact of Free Association Section 432 Review (Agreement) that arose from the 15-
year review, will address these concerns, maintain stability, promote economic
We're always glad to have our friend, Senator Manchin. Wel-
growth and increase the progress already made under the Compact of Free Associa-
come. tion.
Senator MANCHIN. Thank you, Mr. Chairman. The Agreement extends United States assistance, in declining annual amounts,
Before I start my line of questioning with Congresswoman through fiscal year 2024. The total of direct financial assistance to Palau under the
Christensen, my disclaimer is I'm a former Governor. So you know appropriated for direct economic assistance by congressional action through fiscal
Agreement is $229 million, although $52.6 million of that amount has already been
where I'm coming from with the questions.
year 2013 .
The revised Organic Act of the Territory of the Virgin Islands Under the Agreement, direct assistance for governmental operations declines an-
provides for the Executive and legislative branches to make impor- nually. The declining amount of assistance is intended to provide an incentive for
Palau to develop other sources of local revenue and serves notice that the Palauan
tant decisions on behalf of the territory's residents. It seems that government has agreed that it will need to make systemic adjustments to its gov-
your proposal to install a CFO to make important budgetary deci- ernment in order to live within those same resources.
sions for the Virgin Islands, undermining both this act and the cur- The Agreement contains five categories of financial assistance for Palau:
rent processes of trying to find a path toward a constitution. Direct economic assistance.-The Agreement provides for direct assistance for
Your response? education, health, administration of justice and public safety, in amounts start-
MS. CHRISTENSEN. On the issue of the constitution. Most every ing at $13 million, declining to $2 million, the last payment, in 2023. As dis-
cussed below, this "glidepath" is coupled with a gradual increase in how much
constitution has included a provision such as a Chief Financial Of- Palau can withdraw from its trust fund. The timing of direct assistance pay-
ficer. And often we've seen that as we have not been able to pass ments is conditioned on Palau's making certain fiscal reform efforts. If the
a constitution certain provisions have actually been put in place. United States government determines that Palau has not made meaningful
My legislation to create a Chief Financial Officer is a temporary progress in implementing meaningful reforms, direct assistance payments may
be delayed until the United States Government determines that Palau has
position. It is one that would come to a referendum under the origi- made sufficient progress on the reforms.
nal legislation at some point before the term was up. So it's seen Infrastructure projects.-Under the Agreement the United States is to pro-
as a temporary, not a permanent, position. So we don't feel that it vide $40 million to Palau for mutually agreed infrastructure projects to be de-
is contrary to the Organic Act. Infrastructure maintenance funa.-Under the Agreement, a trust fund will be
cided after implementation has begun.
But more importantly, you know, when we looked at where our established to be used for maintenance of capital projects previously financed
government was in 2003 and where we look at where it is today, by the United States, including the existing Compact Road. During the life of
I think it is a reasonable,approach to addressing, not only the dis- the agreement the United States government will contribute $2 million annu-
ally and the Palau government will contribute $600,000 annually to the fund.
tress that exists of government, but in just being more fiscally re- This will protect crucial United States investments in Palau that significantly
sponsible and fiscally accountable. It is interesting that in every . contribute to economic development.
election that has taken place since 2003, as we go to forums and Fiscal consolidation fund.-The United States will have provided grants of $5
debates, the issue is always raised. Are you in favor of a Chief Fi- million during each of the first two years of the agreement to help the Palau
government reduce its debt. United States creditors must receive priority, and
nancial Officer?
the government of Palau must report quarterly on the use of the grants until
I will tell you that, with very few exceptions, no one running for they are expended. This fund will also simplify needed economic adjustments
office is willing to say to the public that they don't support it. to Palau's fiscal policies.
Trust fund.-The Agreement increases the size of Palau's trust fund directly
There's wide public support for it.
and indirectly to bolster the likelihood that the trust fund will yield payments
Senator MANCHIN. Let me ask you this. of up to $15 million annually through 2044. First, the United States will con-
Installing an appointed and not an elected CFO to supervise the tribute a total of $30 million in annual contributions through 2022 and con-
finances of the Virgin Islands seem like that would be, to me, hard tribute $250,000 in 2023. Second, the government of Palau will delay with-
drawals from the fund, drawing $5 million annually through 2013 and gradu-
to do, especially when you enjoy democratic elections.
ally increasing its withdrawal ceiling from $5.25 million in 2014 to $13 million
As a former Governor I appointed my revenue secretaries. I ap- in 2023. From 2024 through 2044, Palau is expected to withdraw up to $15 mil-
pointed my budget teams. I was held accountable and responsible. lion annually, as originally scheduled. Under the Agreement, withdrawals from
....
42 31
conservation. If applicants in the U.S. are made eligible, this limited amount for You have an election. I understand you're running for Governor?
critically important international work is likely to be significantly reduced. Ms. CHRISTENSEN. I plan to.
Conclusion Senator MANCHIN. OK. So why wouldn't you wait and then if you
Mr. Chairman, we at the Department of the Interior are pleased that you and the want to give those powers away or if you want to put the right per-
ranking member have introduced the Territorial Omnibus Act of 2013. Despite the
fact that the Department cannot support each and every provision, the bill gives an son, why wouldn't you do it then?
ai ring to important territorial issues of long standing. We will be pleased to work Ms. CHRISTENSEN. As we have gone through this process and
with the Committee as it finalizes the legislation. we've reached-
S. 1268
 Senator MANCHIN. Why-
Ms. CHRISTENSEN. Senator, this has passed the House 5 times-
Chairman Wyden and members of the Committee on Energy and Natural Re- 4 times.
sources, I am pleased to be here today to discuss S. 1268, which would approve the
agreement between the Government of the United States and the Government of - Senator MANCHIN. Let me ask you this, if I may.
the Republic of Palau following the Compact of Free Association section 432 review. Ms. CHRISTENSEN. Can I just respond to the first question?
My colleagues from the Departments of State and Defense will discuss the impor- Senator MANCHIN. OK.
tance of the United States-Palau relationship as it relates to national security and
our policies in the Pacific. My statement today regarding Palau will focus on the
Ms. CHRISTENSEN. At this point in this Omnibus Territories bill
financial assistance components of the new agreement with Palau, for which the De- the Chief Financial Officer would go to a referendum where the
partment of the Interior will be responsible. people would decide at the next election. I think that that is only
The United States-Palau Relationship fair. Let the people voice their will.
The Department of the Interior and the Government of Palau have been partners Senator MANCHIN. The people have voiced if they've elected your ,
since 1951, when the Navy transferred to the Department of the Interior the admin- Governor. If I was your Governor I would be offended that you ,
istration of the United Nations Trust Territory of the Pacific Islands. Since the end would be pushing my Administration that I'm not running it prop-
of World War II, Palau has emerged from its status as a war-ravaged protectorate erly when I just got ratified. I just got elected.
to become a sovereign nation and respected member of the world community. Con-
sistent with the provisions of the 1994 Compact of Free Association, Palau has exer- How?
cised its sovereignty in accordance with the principles of democracy and in firm alli- Ms. CHRISTENSEN. The Governor himself, when he was first run- 1
ance with the United States. ning, when he was asked at a forum, did he support the Chief Fi- 1· 4
The Compact of Free Association has proven to be a very successful framework nancial Officer? And at that time the Chief Financial Officer had - p
for United States-Palau relations. The goals of the first fifteen years of the Com-
pact have been met: the trusteeship was terminated; Palau's self-government was more authority to interfere in the authority of the Governor in the
restored; a stable democratic state was established; third countries were denied first iteration of this bill. The Governor said yes, I support a Chief f
military influence in the region of Palau; and with U. S. financial assistance, a base Financial Officer.
for economic growth has been provided.
The original financial terms and conditions of the Compact have been fully imple-
Senator MANCHIN. The way this bill is drafted, S. 1237, it says r a
mented by the United States and Palau. The United States, through the Depart- each year prepare and certify spending limits of the annual budget - -,
ment of the Interior, has provided over $600 million of assistance, including $149 including annual estimates. That's- . -,2
million used to construct the 53-mile road system on the island of Babeldoab and MS. CHRISTENSEN. That' s all they do.
$38.7 million for health care and education block grants. Most of the funding, $400 Senator MANCHIN. That's what your revenue person does. Do you -
million, was expended on activities defined under Title Two of the Compact, which
included general government operations, energy production, communications, capital not have a revenue person at all?
improvements, health and education programs and establishment of the Compact Tax Department?
Trust Fund. Revenue Department?
The Compact Trust Fund was an important feature of U.S. assistance. Capitalized
Ms. CHRISTENSEN. Yes, we do.
with $70 million during the first three years of the agreement in the 1990s, the ob-
jective of the trust fund was to produce an average annual amount of $15 million Senator MANCHIN. You're saying they're incompetent.
as revenue for Palau government operations for the thirty-five year period fiscal Ms. CHRISTENSEN. No. I'm saying that and you've heard it from
year 2010 through fiscal year 2044. The fund also generated $5 million in annual the Puerto Rican Resident Commissioner, that at times the rev-
operational revenue for Palau since the fourth year of the agreement, totaling $60
million for the years 1998 through 2009. enue projections are off and it has caused problems in Puerto Rico.
Palau has made strong economic gains under the Compact of Free Association. Its ' It's caused problems in the Virgin Islands.
growth, in real terms, has averaged just over two percent per year. Palau's govern- Senator MANCHIN. If you revenue projections are off your legisla-
mental services are meeting the needs of its community. Palau has taken control ture hasn't done their job. There's a check and balance. That's a
of its destiny and is moving in the right direction. democracy.
Compact Reuiew You have a democracy.
As both the United States and Palau began the required Compact section 432 re- Ms. CHRISTENSEN. Would you object to having the people of the
view several years ago, each side took pride in the growth evident in Palau. How-
Virgin Islands decide whether they wanted a Chief Financial Offi-
ever, the review, which examined the terms of the Compact and its related agree-
ments and the overall nature of the bilateral relationship, also focused attention on cer or not?
several important issues. The United States and Palau agreed that prospects for Senator MANCHIN. Why don't you do away with your legislature
continued economic growth relied on four key factors: 1) the viability of the Compact and your elected officials?
trust fund and its ability to return $15 million a year; 2) the implementation of fis- Ms. CHRISTENSEN. I don't think that that is-
cal reforms to close the gap between Palau's revenues and expenditures by shrink-
ing its public sector and raising revenue; 3) the promotion of increased foreign in- Senator MANCHIN. You can't have your cake and eat it too. You
vestment and private sector growth, and, 4) the continuation of certain United can't have democracy.
....
32 41
MS. CHRISTENSEN. I don't think that there's anything undemo- American Samoa Citizenship Plebiscite Act
cratic. The District of Columbia has a Chief Financial Officer. If Section 19 would require the Secretary of the Interior to direct the American
Samoa Election Office to conduct a plebiscite on whether or not persons born in
you read the bill the Chief Financial Officer goes through the proc-
American Samoa desire United States citizenship.
ess of a nomination by the Governor after having a committee Under the Tripartite Convention of 1899, ratified February 16, 1900, Great Brit-
present that person to them and is approved by our local legisla- ain and Germany ceded claims of the eastern portion of the Samoan Islands to the
ture as well. United States. This portion of the archipelago became known as "American Samoa."
The Matai (the chiefs) of Tutuila and Manu'a, signed voluntary Deeds of Cession
Senator MANCHIN. But I understand revenue. I did an awful lot
in 1901 and 1904, respectively, which were subsequently accepted, ratified and con-
of budgets. I understand how the process works. . firmed retroactively by Congress. In 1929, the Congress provided that with regard
If I gave erroneous revenue estimates to my legislature, they to the government of the territory of American Samoa, all civil, judicial, and mili-
hold me accountable. The people hold me accountable when I go to tary powers shall be exercised as the President shall direct. In 1951, the President
delegated his authority to the Secretary of the Interior.
the election because I haven't been honorable or transparent. I un- - Under the authority of the Secretary of the Interior, American Samoa adopted a
derstand all that. constitution in 1960. The issue of citizenship versus status as a U.S. national was
The process either has to work or it doesn't work or you have to a key issue. The Samoan leaders and people were concerned that U.S. citizenship
could cause the equal protection clause of the United States Constitution to inter-
get new people.
fere with their communal land tenure system, chiefly or matai titles, and the viabil-
I just, very respectfully, I'm so sorry. I just disagree because I ity of Fono's Senate due to the selection of Senators from among persons with matai
believe in a democracy. I believe in elected officials doing their job titles.
and being held accountable. If they don't, I think when the people To protect and ensure continuation of fa'a Samoa (the Samoan way of life),
speak then we must work through a system. If not, then you have Samoans chose to be U.S. nationals rather than citizens of the United States. Both
citizens and nationals owe allegiance to the United States, although the United
incompetency. They can be removed or impeached. States Constitution grants certain privileges to citizens, but not persons who are na-
But you're forcing something to where I know your administra- tionals alone.
tion is opposed to that right now. If you wish to do it, God willing, The United States national status of persons born in American Samoa was upheld
on June 26, 2013, by the United States District Court for the District of Columbia
and you're elected. Then you'll have that opportunity. in Leneuoti Fiafia Tuaua et al. v. United States of America et al. which included
Ms. CHRISTENSEN. The current administration was not always the following statement:
opposed. But at this point in time at the next election where I'm
To date, the Congress has not seen fit to bestow birthright citizenship on
supporting having the people of the territory decide whether they American Samoa, and in accordance with the law, this Court must and will
want that Chief Financial Officer. respect that choice.
Senator MANCHIN. Sure. In the fifty years since the adoption of the original constitution of American
I think you should wait until that time to do that. That's why Samoa, attitudes of many in the local population of American Samoa may have
I will be opposing this process right now. shifted. The plebiscite called for in section 19 will bring new discussion to these
land, matai title and Senate issues. These are issues for the American Samoa polity
Ms. CHRISTENSEN. The current bill waits until 2014 for that ref- to discuss and decide.
erendum. Should the proposed vote in American Samoa favor citizenship, leaders in Amer-
Senator MANCHIN. I will duly, respectfully, oppose this at the ican Samoa would then approach the Secretary of the Interior and the Congress,
proper time. to seek action on the issue.
The Department of the Interior has no objection to the enactment of section 19.
Thank you. Marine Turtles
Ms. CHRISTENSEN. Thank you for your question.
Section 20 would extend the Marine Turtle Conservation Act of 2004 to United
The CHAIRMAN. I thank my colleague. I would just say, Senator
States territories and possessions. Marine turtles are "flagship species" for both
Murkowski and I often find ourselves in this kind of situation. local and international coastal conservation. Because marine turtles circumnavigate
These issues generate a lot of strong feeling and two individuals I the world's oceans to reach their nesting beaches, their conservation must be ad-
consider good friends, we've just seen that. dressed through global efforts. By focusing on these species and their habitats, we
can more adequately conserve and manage ecologically critical coastal and marine
One of the thoughts that I think is worth exploring in an effort
habitats around the world.
to try to find some common ground is to see if we can use this GAO The Department's U.S. Fish and Wildlife Service and the National Oceanic and
report to try to identify concerns that could allow us to come to- . Atmospheric Administration (within the Department of Commerce) share jurisdic-
gether. So I would just say to two people that I've worked with in tion for the conservation of marine turtles. The Service focuses conservation activi-
ties on nesting beaches while NOAA works to conserve and recover turtles in their
the past and who I think have a lot of integrity, we will stay at
marine habitats. The Fish and Wildlife Service also administers the Marine Turtle
this and see if we can find a way together. . Conservation Fund, which provides grants to countries with sea turtle nesting
Senator MANCHIN. Mr. Chairman, I always like to work with beaches on a cost share basis, to implement sea turtle conservation programs. Such
you. international conservation is a key part of the effort to recover and conserve these
The CHAIRMAN. You always do. I just tell my friend from West
global species.
The Department of the Interior supports the intent of section 20 to provide great-
Virginia back when we were trying to do health reform and we had er funding opportunities for turtle conservation in the U.S. territories. However, we
the only bipartisan proposal, the Congresswoman was there on are concerned that this change would significantly dilute the limited funds available
those kinds of issues. to implement conservation measures in foreign countries. There are resources al-
ready available for sea turtle conservation in the U.S., including the territories. The
Senator MANCHIN. Sure.
relatively small amount of Marine Turtle Conservation Fund grants (less than $1.8
The CHAIRMAN. I think there's something to be addressed here million in FY 2012), which provide critical assistance to our international partners,
in terms of agreement and perhaps it will be the GAO approach. accounts for about six percent of the overall funds spent by the U.S. on sea turtle
....
40 33
The Department of the Interior recommends that the committee seek broad coun- Perhaps it will be others. But I just want both of you to know that
sel among leaders in Guam regarding the financing of claims under section 12. we will take your-
Use of Certain Expenditures as In-Kind Contributions Senator MANCHIN . I hope that the Congresswoman knows that
Section 13 would allow territorial and Hawaii government costs ascribed to the with all due respect I just, as a former Governor, I have a hard,
migration of freely associated state (FAS) citizens to Guam, Hawaii, the CNMI and
you know. Your political opponents and it becomes a political battle
American Samoa to be valued and applied as in-kind local matching contributions back and forth, always has been.
for Federal programs.
With amendments to the Compacts of Free Association legislation passed in 2003, But the bottom line is the elected official basically has the sup-
the Congress appropriated $30 million annually to be distributed among the four . port of the majority of the people who voted. That's a democracy.
affected U.S. jurisdictions based on an enumeration of FAS citizens in those four You enjoy democracy.
jurisdictions. The Congress provided an additional $5 million in each of fiscal years I've been to your beautiful islands. Your people are beautiful. I
2012 and 2013. It is uncontested that the impact of migration to Guam, Hawai i,
CNMI and American Samoa exceeds the amounts appropriated. · really love it.
Under section 13 of S. 1237, amounts above the annual payments could be classi- I've had interactions with, through the Governor's Associations,
fied as eligible amounts to be drawn on as "in-kind contributions" that would aid with everybody. I think when the people speak, you know, democ-
the affected jurisdictions in satisfying matching requirements for Federal programs.
racy has to grow from that. If there's something wrong, we can
In addition, under the compact legislation, the governors of Guam, Hawaii, the
help and we can assist. There might be a report. There might be
CNMI and American Samoa are invited annually to provide reports on the impact
of migration from the freely associated states of the Marshall Islands, the Federated assistance.
States of Micronesia, and Palau on their respective jurisdictions. Guam produces But to force legislation upon an administration that does not
such a report annually; Hawaii sporadically; American Samoa and the CNMI do not. wish it and they're held accountable by the elected officials, by the
The Department of the Interior forwards these reports to the Congress.
electorate. You follow? It's hard for me to comprehend that. I just
Among the governments, there is no consistent format or standards for inclusion
of costs, and no inclusion of benefits that FAS citizens provide the respective juris- have a hard time with that.
diction. In its 2012 report on FAS migration, the Government Accountability Office Ms. CHRISTENSEN. Let me say to you, Governor Manchin, that
(GAO) stated: we've appreciated the work that West Virginia has done with us on
. . . some jurisdictions did not accurately define compact migrants, ac- our health care issues. I would say that regardless of what a GAO
count for federal funding that supplemented local expenditures, or include study might or might not say, the people of the Virgin Islands may
revenue received from compact migrants. still desire to have a Chief Financial Officer.
The GAO recommendations did not include specific recommendations necessary to I've been elected since 2003 several times with more votes than
achieve accuracy in reporting impacts of the compacts. any Governor running at the time. But I'm running which should
The Department of the Interior has urged the governors to develop consistent
standards of reporting among themselves, including the definition of FAS migrants, say that the people of the Virgin Islands have supported the con-
accurate accounting of migrant costs to the affected government, and benefits re- cept of the Chief Financial Officer as well.
ceived by the affected jurisdiction from employment, taxation and consumption. To Senator MANCHIN. If I can say this, Mr. Chairman?
date, they have not done so. Just one thing, very quickly is that what the Congresswoman
Assuming that accurate reporting is achieved in future reports, the accuracy of
past reports remains a problem for calculating the amounts from which "in-kind was referring to, is that we found out that we had the capacity in
contributions" could be drawn. our computer. We just bought a new computer system when I was
Without establishing standards, the language in section 13 is untenable. For ex- Governor, that we could help the Virgin Islands basically run, help,
ample, subsection (b) calls on the Secretary of the Interior to determine amounts assist them with their Medicaid without them having expenditure.
eligible for "in-kind" classification "based on a reasonable estimate of the amount
of impact expenditures for the Freely Associated States." The words I quoted give It's really the cooperation we all should have. We're all together,
no direction for the Secretary to arrive at an estimate and the expenditures are not all of us.
stated to be those of the four U.S. affected jurisdictions. Specific and exacting stand- The CHAIRMAN. Let's do this. Let's give the last word to a special
ards are missing. peacemaker, Senator Murkowski. She's got to get to her 11 hearing
The Department of the Interior opposes the enactment of section 13.
and there are also caucuses and the like. She has been particularly
Waiver of Local Matching Requirements helpful in trying to bring all sides together.
Section 16 would amend section 501 of Public Law 95-134, which allows waiver . Because I happen to think the Congresswoman has valid con-
of local matching requirements for Federal grants for U.S. territories, to require the
waiver of all matching of $500,000 or less. cerns. We consistently appreciate Senator Manchin and his efforts
The original waiver provision, giving all federal agencies permissive authority to to try to bring people together. We're going to stay at it.
waive local matching requirements of $200,000 or less, has been in effect since 1977. · Last words for this panel for Senator Murkowski.
Since 1980, statute has required the matching waiver for grants of the Department Senator MURKOWSKI. I thank you, Mr. Chairman. I don't have a
of the Interior. Generally the law has been interpreted not to apply to discretionary magic wand to wave today. If I did I would fix all of the energy
grants, because a granting agency could decide, in its discretion, to forgo making
the grant if a territory were to insist on the waiver of the match. Such an eventu- cost issues, not only in the territories, but all over the 50 States
ality would harm the territories. as well.
Considering that more than 30 years have passed since the $200,000 waiver was But I think it's clear that you need to have a voice here in the
established, the increase to $500,000 would seem appropriate and consistent with U.S. Congress. You are all quite confident and qualified, but in
inflation over time.
The Department of the Interior has no objection to the enactment of section 16 doing your job and representing the people of your regions, you also
with regard to grants from the Department of the Interior. We express no view with know that you don't have that full vote. So it must be extraor-
regard to waiver changes for other Federal agencies. dinarily difficult as you try to advocate on some issues that are
....
34 39
challenging, are complicated, are complex and oftentimes are very proposed national historic site was the subject of a special resource study, completed
in 2010, that found that the site met the National Park Service's criteria for inclu-
emotional.
sion in the National Park System.
So, know that within this committee you have colleagues that This 2,900-acre site is located along the arid southeastern shore of St. Croix,
want to try to help a process. That I think it was the Congressman about three miles south of the town of Christiansted. The terrain is mostly rolling
from American Samoa that mentioned you sometimes you're just and hilly with a mixture of dry forest, native vegetation, and rangeland that offers
picturesque views to the Caribbean Sea and to distant parts of the island. Estab-
forgotten you're left out. Know that here we don't want you to feel lishing this site as a unit of the National Park System would provide the oppor-
forgotten and left out with your issues, as difficult as they may be. tunity to preserve and protect this outstanding Caribbean cultural landscape and
So we pledge to work with all of you. . interpret the cotton era and related agricultural themes that have been instru-
The CHAIRMAN. That sums it up ideally because you all have mental in the development of St. Croix and the Virgin Islands. It would also help
protect five pre-Columbian archeological sites, two of which are among the oldest
brought passion and expertise. We appreciate you. We'll excuse you sites on St. Croix.
at this time. . The Department supports this section with an amendment. The recommended
Ms. Sobeck, we're going to have actually you on this next panel amendment, which would insert the standard language used in bills establishing
new areas of the National Park System, is to strike "consists" on line 12 of page
which will consist of Ms. Sobeck.
19 and insert "shall consist".
Vikram Singh, representing the Department of Defense.
St. Croix National Heritage Area
Edgard D. Kagan, representing the Department of State.
Section 11 would establish the St. Croix National Heritage Area on the island of
If you all would come forward. St. Croix. A feasibility study completed in 2012 by the National Park Service found
Alright, let us hear from Ms. Sobeck, then Mr. Singh and Mr. that this proposed heritage area, which would include the entire island, met the
Kagan. Service's interim criteria for designation as a National Heritage Area. The heritage
As I indicated we'll make your prepared statements a part of the area would be focused on five themes: early cultures, slavery and emancipation, the
influence of seven colonial powers, the island's unique geography and natural envi-
record. I suspect it's going to start getting hectic here this morning. ronment, and modern-day cultures.
If you can just take your 5 minutes and say your piece and rep- The Department supports the objectives of this section. However, the Department
resent your departments that would be great. recommends that Congress enact program legislation that establishes criteria to
All your prepared statements will be made part of the record. evaluate potentially qualified National Heritage Areas and a process for the des-
ignation, funding, and administration of these areas before designating any addi-
Ms. Sobeck. tional new National Heritage Areas. There are currently 49 designated national her-
MS. SOBECK. Thank you very much, Mr. Chairman. itage areas, yet there is no authority in law that guides the designation and admin-
The Compact of Free Association with Palau has proven to be a istration of these areas. Program legislation would provide a much-needed frame-
work for evaluating proposed national heritage areas, offering guidelines for success-
very successful framework for both the United States and Palau,
ful planning and management, clarifying the roles and responsibilities of all parties,
our joint relations. and standardizing timeframes and funding for designated areas.
The goals of the first 15 years of the compact have been met. If the committee moves forward on S. 1237 with section 11 included, we would
The trusteeship was terminated. like to recommend amendments to some of the terms used in this section. We would
be happy to provide the committee with our recommended amendments.
Palau's self government was restored.
Guam War Claims Review Commission
A stable democratic state was established.
Other countries were denied military influence in the region of
Section 12 would approve payments and a funding source for claims arising from
the World War II Japanese occupation of Guam.
Palau.
Sixty-nine years ago this month, U.S. forces stormed the beaches of Asan and
With the United States financial assistance, a base for economic Agat on the island of Guam. The fierce battles in the weeks that followed would
growth has been provided. end Japan's two-and-a-half year occupation of Guam. Approximately a thousand
United States national residents of Guam died during the occupation; the people of
The original financial terms and conditions of the compact have Guam were subjected to summary executions, beheadings, rapes, torture, beatings,
been fully implemented. forced labor, forced march and internment.
Palau has made strong, economic gains under the Compact of With the passage of the Guam Meritorious Claims Act of 1945, the people of
Free Association. Its growth in real terms has averaged just over
Guam became the first group of United States nationals to be made eligible for pay-
ment of claims by the United States for damages suffered during the war. In the
2 percent per year. Palau has taken control of its destiny and is years t~lat followed, ~owever, many on Guam came to question whet~er t~e Guam
moving in the right direction. Meritorious Claims Act, as implemented, sufficiently compensated the people of
As both the United States and Palau began their mandated com- Guam for their suffering.
The Guam War Claims Review Commission, created pursuant to legislation
pact review several years ago they agreed that economic growth , passed in 2002, was charged with determining whether there was parity in the
would rely on 4 key factors. treatment of Guamanians' World War II claims as compared with the claims of U.S.
First, trust funds ability to return $15 million a year. citizens or nationals in other areas occupied by Japan during the war. The commis-
Second, fiscal reforms to shrink Palau's public sector and raise sion determined that Guamanians did not receive treatment in parity with other
United States individuals who similarly suffered during World War II.
revenue. This section would provide payments to persons now living on Guam who actually
Third, increased foreign investment and private sector growth. suffered the Japanese occupation during World War II. It would not provide pay-
Four, continuation of certain U.S. assistance. ments to heirs of survivors of the Guam occupation, but would compensate heirs of
The new agreement addresses all of these concerns. the approximate 1,000 United States national residents of Guam who died during
the Japanese occupation.
The agreement extends U.S. assistance in declining annual Funding for this section would be provided from the Guam Organic Act section
amounts through fiscal 2024 with a total direct financial assistance 30 funding that is in excess of section 30 funding for fiscal year 2012.
....
38 35
financed by our Technical Assistance Program. The President's 2014 budget for OIA under the agreement is $229 million, $52.6 million of which has al-
includes funding for specific energy projects under Empowering Insular Commu-
ready been appropriated through fiscal year 2013.
nities to implement a number of the NREL recommendations.
The Department of the Interior opposes section 6 of S. 1237 as being unnecessary The amount of direct assistance will decline every year which is
because it is duplicative of section 604 of Public Law 96-597, and of current efforts intended to provide an incentive for Palau to develop other sources
to implement the energy plans that have been and are being developed. for local revenue and the Palauan government will need to make
Chief Financial Ofticer ofthe Virgin Islands systemic adjustments in order to live within those resources .
Section 7 includes a provision for establishing a chief financial officer (CFO) for The agreement contains 5 categories of financial assistance for
the Virgin Islands, and a plebiscite of Virgin Island voters on the issue. Palau.
In the mid-2000s, an earlier CFO bill would have placed significant restrictions
on local self-government and the powers of the elected Governor of the Virgin Is- Category 1, direct economic assistance for education, health, ad-
lands as established in the Virgin Islands Revised Organic Act. A revised CFO bill ministration of justice and public safety, starting at $13 million a
was the subject of a hearing last year in the House of Representatives. The Depart- year and declining to $2 million in 2023.
ment of the Interior had no objection to that bill because it would have constituted
Category 2, infrastructure projects in the amount of $40 million
"only de minimus interference with self-government in the Virgin Islands." We
noted that the purpose of the bill was to rein in deficit spending, but that the bill to be mutually agreed upon in the future.
did not require a balanced budget. Category 3, infrastructure maintenance funds for capital projects
S. 1237 adds a new provision requiring a plebiscite on the question of whether previously financed by the United States.
or not a chief fi nancial officer position should be established. This extra layer of ap-
proval for the CFO position by the voters of the Virgin Islands would demonstrate So during the life of the agreement the U.S. Government will
acceptance of the concept or not, by the citizens of the Virgin Islands. have contributed $2 million annually and the Palau government
The Department of the Interior has no objection to the enactment of section 7. will have contributed $600 thousand annually to the fund.
Reports on Estimates of Revenue Category 4 is a fiscal consolidation fund where the United States
Section 8 would require the governors of American Samoa, the Northern Mariana will have provided grants, $5 million, during each of the first 2
Islands, Puerto Rico, Guam and the Virgin islands each to submit a report on the years to help Palau reduce its debt.
process for developing annual estimates of the government;'s revenues and expendi- Finally Category 5, the trust fund where the United States will
tures and any supporting documents and schedules to appropriate committees of the
Congress and the Comptroller General of the United States, and also require the contribute approximately $30 million through 2023. Palau will
Comptroller General to submit a report evaluating the reasonableness of those esti- delay withdrawals from the trust fund. Under the agreement with-
mates and if necessary submit recommendations toi improving the processes for de- drawals from the trust fund may only be used for education,
veloping the estimates to appropriate committees of the Congress.
Over the years, in statements related to the legislation that would create a Chief health, administration ofjustice and public safety.
Financial Officer of the Virgin Islands, the Department of the Interior has stated Under the new agreement the United States and Palau will work
that all the territories have had difficulty with risin{4 debt due to problematic budg- cooperatively through an advisory group on economic, financial and
eting processes. Section 8 would provide a framework for studying the budget proc- management reforms through an annual, bilateral, economic con-
esses of the territories.
Because the governors of each of the territories would be so intimately involved, sultations and finally through the provision of other U.S. services
the Department of the Interior defers to the opinions of the governors of each of the and programs, through the Postal Service, through the Weather
United States territories with regard to this provision. Service, the Federal Aviation Administration and the Departments
Low-Income Home Energy Assistance Program of Education and Health and Human Services.
Section 9 would provide that under the Low-Income Home Energy Assistance Act While awaiting Congressional approval of the agreement, Inte-
of 1981 energy assistance would be 300 percent of the normal rate when applied rior has remained engaged with Palau through OIA's technical as-
to households located in the Virgin Islands in years 2014 through 2017. sistance program and assistance for repair of the compact road and
United States Virgin Islanders are struggling with some of the highest electric
rates in the U.S. Currently, the residential rate in the Virgin Islands is 50 cents facilitating Palau's participation in regional forums. Approval of
per kilowatt hour, with the commercial rate at 54 cents per kilowatt hour. These this agreement remains a priority of the Administration, as I think
high Virgin Islands rates contrast significantly with rates elsewhere in the United is evident through the letter that transmitted the legislative pro-
States, which average 12.8 cents per KWH.
Considering both the high poverty rates and high electric rates in the Virgin Is- posal.
lands, one can understand the extreme difficulty under which many Virgin Islands We look forward to working in partnership with Palau. We're
residents are living. Many residents cannot afford to keep the lights on, and busi- proud of the contribution that Interior and other agencies and the
nesses are closing. contribution of the United States has made to the success that we
Given the fact that electric rates in the Virgin Islands are five times that on the call Palau. We look forward to future progress in this area.
U.S. mainland, a LIHEAP payment of three times the mainland amount for a lim-
ited, four-year period of time would not be unreasonable.
. Thank you for your consideration.
In addition, the territories of Guam, CNMI, and American Samoa are also paying [The prepared statements of Ms. Sobeck follow:]
significantly higher residential rates than in the rest of the United States. The rates
are 24.5 cents per KWH on Guam, 32 cents per KWH in the CNMI, and 39 cents
PREPARED S'rATEM.ENTS OF EILEEN SOBECK, ACTING ASSISTANT SECRETARY FOR
per KWH in American Samoa. INSULAR AREAS, DEPARTMENT OF THE INTERIOR
The Department of the Interior has no objection to the enactment of section 9,
but suggests, based on the rates paid by each of the territories, that a formula for S. 1237
Guam, CNMI, and American Samoa be included in this section as well.
Mr. Chairman and members of the Committee on Energy and Natural Resources,
Castle Nugent National Historic Site Establishment I am pleased to discuss , on behalf of the Department of the Interior , certain provi-
Sect:ion 10 would establish the Castle Nugent National Historic Site on the island sions of the Omnibus Territories Act of 2013, S. 1237. Sections 14, 15, 17, 18 and
of St. Croix in the U.S. Virgin Islands as a unit of the Nat:ional Park System. This 20 of the bill pertain to matters outside of the Department's jurisdiction; as such
....
36 37
the Department defers to the relevant federal agencies for their views on these pro- In 2007, the Congress put American Samoa and the CNMI on a path to match
visions. the United States minimum wage within a few years. Legislation dictated increases
to the minimum wage of 50-cents per year, until parity was achieved.
Territorial Sea Due to substantial economic hardship in American Samoa-the closure of one of
Section 3 would give the Commonwealth of the Northern Mariana Islands (CNMI) its two tuna canneries-the law was amended to skip the increases for American
authority over the submerged lands out to three geographical miles from its coast Samoa from 2011 through 2014.
lines. Both territories have isolated locations in the Pacific Ocean in neighborhoods of
At present, the CNMI is the only United States territory that does not have title low wages. The CNMI has also suffered the loss of one of its two major industries-
to the submerged lands in that portion of the United States territorial sea that is garment manufacturing. The purpose of section 4 is to spread out the minimum
three miles distant from its coastline. It is appropriate that the CIVMI be given the wage increases for the CNMI to help ensure the survival of island budmesses and
same authority as other territories. their employees' jobs. Specifically, section 4 would slow the pace of minimum wage
On January 6, 2009, by presidential proclamation, the Marianas Trench Marine increase until after 2015, when the annual increases would resume, similar to the
National Monument (Monument) was created, including the Islands Unit, com- adjustment made previously for American Samoa.
prising the submerged lands and waters surrounding Uracas, Maug, and Asuncion,
The Department of the Interior has no objection to section 4.
the northernmost islands of the CNMI. While creation of the monument is a historic
achievement, it should be remembered that the leaders and people of the CNMI CNMI Immigration Issues
were and are these three islands' first preservationists. They included in their 1978, Section 5 deals with fees and funding vocational education curricula and develop-
plebiscite-approved constitution the following language: ment of educational entities, and a five year extension of the statutory period
(through December 31, 2019) for lowering the number of CNMI-only foreign transi-
ARTICLE XIV: NATURAL RESOURCES
tional worker permits to zero.
Section 1: Marine Resources. The marine resources in the waters off the
Subsection 1 of Section 5 requires the CNMI government to provide a plan for the
coast of the Commonwealth over which the Commonwealth now or here-
expenditure of educational funds collected (as required by statute) by the Depart-
after may have any jurisdiction under United States law shall be managed,
ment of Homeland Security as a supplemental fee on CNMI employers' transitional
controlled, protected and preserved by the legislature for the benefit of the
people. worker immigration petitions and provided to the CNMI government, and a projec-
tion of the effectiveness of these funds in finding employment for U.S. workers.
Section 2: Uninhabited Islands .... The islands of Maug, Uracas, Asun-
Every two years the Secretary of Homeland Security must report on the effective-
cion, Guguan and other islands specified by law shall be maintained as
ness of meeting the goals set out in the annual plan.
uninhabited places and used only for the preservation and protection of nat-
Subsections 2 and 3 of section 5 also relate to CNMI-specific immigration provi-
ural resources, including but not limited to bird, wildlife and plant species.
sions contained in the Consolidated Natural Resources Act of 2008 (CNRA). The
It is important to note that the Northern Marianas Commonwealth Legislature CNRA shifted administration of immigration in the CNMI from CNMI to Federal
has never taken action adverse to the preservation of these northern islands and authority, but also established a five-year transition period to allow the CNMI econ-
the waters surrounding them. The people of the CNMI are well aware of their treas- omy to adjust to the new regime.
ures. CNMI leaders consented to creation of the monument because they believed Coincident with change in World Trade Organization rules and the demise of the
that the monument would bring 3'ederal assets for marine surveillance, protection, CNMI garment industry in the late 2000s, the CNMI's economy has struggled. The
and enforcement to the northern islands that the CNMI cannot afford. resulting tax and revenue decline has been challenging for the CNMI government.
If enacted, section 3 would become a public law enacted subsequent to the cre- The Department of the Interior has always supported measures that promote eco-
ation of the Monument, and would convey to the CNMI the submerged lands sur- nomic development in the CNMI, and in the CNRA, the Congress specifically di-
rounding Uracas, Maug, and Asuncion without addressing the effect of this convey- rected the Department of the Interior to aid the CNMI economy during the immi-
ance on the administrative responsibilities of the Department of the Interior and the gration transition. As a result, in 2011, the Department conducted a Forum on Eco-
Department of Commerce. Presidential Proclamation 8335 (Proclamation) assigned nomic and Labor Development (FELD) in Saipan, designed to elicit from the CNMI
management responsibility of the Monument to the Secretary of the Interior, in con- community ideas and goals for the CNMI economy. The Department later provided
sultation with the Secretary of Commerce. The proclamation further states that the $1 million in grant funds to implement the FELD findings.
"Secretary of Commerce shall have the primary management responsibility... with While it cannot yet be characterized as an economic rebound, statistics from re-
respect to fishery-related activities regulated pursuant to the Magnuson-Stevens cent months show increases in CNMI tourism and hotel bookings.
Fishery Conservation and Management Act (16 U.S.C. §§ 1801 et seq.) and any Nevertheless, businesses and CNMI government officials are concerned that if the
other applicable authorities." The Proclamation provides that submerged lands that approximately 12,000 foreign workers resident in the CNMI under the transitional
are granted to the CNMI "but remain controlled by the United States under the An- worker program were forced to leave at the end of 2014, the reduction would have
tiquities Act may remain part of the monument" for coordinated management with significant adverse consequences for the CNMI economy.
the CNMI. As envisioned by the Proclamation establishing the Monument, the Ad- Under the CNRA, the Secretary of Labor already has the discretion to extend the
ministration remains committed to protecting the outstanding resources in the wa- CNMI-only transitional worker program by up to five years if warranted by eco-
ters surrounding the CNMI's three northernmost islands. nomic conditions. The Department of Labor is now conducting studies that will in-
Specifically, the Department strongly recommends an amendment to section 3 form that decision.
that addresses the coordination of management as contemplated within the Procla- The Department of the Interior defers to the Departments of Labor and Homeland
mation, prior to the transfer of the submerged lands within the Islands Unit of the Security regarding important aspects of section 5.
Monument to the CNMI. Such language would protect the Islands Unit of the
Study of Electric Rates in the Insular Areas
Monument and at the same time acknowledge the prescient and historic conserva- ,
tion effort of the leaders and people of the CNMI in protecting Uracas, Maug, and Section 6 of the bill is entitled "Study of Electric Rates in the Insular Areas." The
Asuncion, and their surrounding waters.
legislative language that follows, however, goes much beyond a study. The language
calls for an "energy action plan" for each territory and freely associated state (FAS)
The Department of the Interior strongly supports section 3 and strongly rec-
ommends the above-referenced amendment. The Department of the Interior looks and implementation of those plans. The legislative language is largely duplicative
forward to the Commonwealth of the Northern Mariana Islands gaining rights in of section 604 of Public Law 96-597 (48 USC 1492), except that, the Secretary of
surrounding submerged lands similar to those accorded other territories. the Interior would be responsible for the described energy effort, rather than the
Secretary of Energy.
Adjustment of Scheduled Wage Increases in the CNMI It should be noted that eight years ago, Interior undertook a comprehensive effort
Section 4 of the bill would slow minimum wage increases in the CNMI by forgoing to study energy needs in the U.S. territories and FAS, and to develop viable energy
the increases slated to take effect on September 30, 2013, and 2015. The 50-cent plans (which included an appropriate role for renewable energy sources) for each ju-
increases scheduled to occur in 2014, 2016 and annually thereafter would remain risdiction. Currently, the Office of Insular Affairs is supporting broad renewable en-
in effect. ergy planning efforts through the National Renewable Energy Laboratory (NREL)
4
..
II
r '6
113TH CONGRESS
1ST SESSION S. 1237
To improve the administration of programs in the insular areas, and for
other purposes.
IN THE SENATE OF THE UNITED STATES
JUNE 27, 2013
Mr. WYDEN (for himself and Ms. MuRKOWSKI) (by request) introduced the
following billi which was read twice and referred to the Committee on En-
ergy and Natural Resources
A BILL
To improve the administration of programs in the insular
areas, and for other purposes.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States ofimerica in Congress assembled,
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Omnibus Territories
5 Act of 2013".
6 SEC. 2. TABLE OF CONTENTS.
7 The table of contents for this Act is as follows:
See. 1. Short title.
See. 2. Table of 'contents.
See. 3. Territorial Sea.
Sce. 4. Adjustment of scheduled wage increases in the Commonwealth of the
Northern Mariana Islands.
See. 5. Amendments to the Consolidated Natural Resourees Act.
1~r -'·5' -
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2
Sce. 6. Study of electric rates in the insular 211'cas. "
See. 7. Chief financial officer of the Virgin Ishwids.
See. 8. Reports on estimates of revermes. 2
Sce. 9. Low-ineonic hollie 01,01·gy :ISHistallee 171·ogi·:1.iii.
Sce. 10. Castle Nugent National Ilistorie Site Establishment.
Sce. 11. St. Croix National I Ieritage Area.
Sec. 12. Guam War Claims Review Commission.
Sce. 13. Uve of ceitain expendittitix as in-kind contril,litic,im.
Sce. 14. Improvements iii IIUD assisted progi·:ims.
Sce. 15. Benefit to Cost 1·Htio study for projeets in Amerieati S:,mou.
See. 16. Waiver of local matching requirement.4.
Sce.. 17. Fisher\, cticic,I·sements.
Sce. 18. Effects of minimum wage (lifferentials iii Amoricall SH,no:I.
Sce. 19. Aine,·ical, Samcia Citizeliship Plel,ixeite Aet.
See. 20. Eligil,ility for mai·inc turtle eonservatioti assistance.
1 SEC. 3. TERRITORIAL SEA.
2 (a) IN GIEN]CRAL.-The first section and section 2 of
3 Public Law 93-435 (48 U.S.C. 1705, 1706) are amended
4 by inserting "the Commonwealth of the Northern Mariana
5 Islands," after " Guam," each place it appears.
6 (b) REFERENCES To DATE OF ENACTMENT.-For
7 the purposes of the amendment made by subsection (a),
8 each reference in Public Law 93-435 to the "date of en-
9 aetment" shall be considered to be a reference to the date
10 of the enactment of this section.
11 SEC. 4. ADJUSTMENT OF SCHEDULED WAGE INCREASES IN
12 THE COMMONWEALTH OF THE NORTHERN
13 MARIANA ISLANDS.
14 Section 8103(b)(1)(B) of the Fair Minimum Wage
15 Act of 2007 (29 U.S.C. 206 note; Public Law 110-28)
16 is amended by striking ~~2011" and inserting "2011,
17 2013, and 2015".
•S 1237 IS
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3 ·
1 SEC. 5. AMENDMENTS TO THE CONSOLIDATED NATURAL
2 RESOURCES ACT.
3 Section 6 of the Joint Resolution entitled "A Joint
4 Resolution to approve the 'Covenant To Establish a Com-
5 monwealth of the Northern Mariana Islands in Political
6 Union with the United States of America', and for other
7 purposes", approved March 24, 1976 (Public Law 94-
8 241; 90 Stat. 263), is amended-
9 (1) in subsection (a)-
10 (A) in paragraph (2), by inserting after
11 "subsections (b)" the following: ",(e),"; and
12 (B) by striking paragraph (6), and insert-
13 ing the following:
14 "(6) CERTAIN EDUCATION FUNDING.-
15 "(A) IN GENERAL.-In addition to fees
16 charged pursuant to section 286(m) of the Im-
17 migration and Nationality Aet (8 U.S.C. 1356
18 (m)) to recover the full costs of providing adju-
19 dication services, the Secretary of Homeland
20 Security shall charge an annual supplemental
21 fee of $150 per nonimmigrant worker to each
22 prospective employer who is issued a permit
23 under subsection (d) of this section during the
24 transition program. Such supplemental fee shall
25 be paid into the Treasury of the Commonwealth
26 government for the purpose of funding ongoing
•S 1237 IS
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4
1 vocational educational curricula and program
2 development by Commonwealth educational en-
3 tities.
4 "(B) PLAN FOR THE EXPENDRWRE OF
5 FUNDS.-At the beginning of each fiscal year,
6 and prior to the payment of the supplemental
7 fee into the Treasury of the Commonwealth
8 government in that fiscal year, the Common-
9 wealth government must provide to the See-
10 retary of Homeland Security, a plan for the ex-
11 penditure of funds, a projection of the effective-
12 ness of these expenditures in the placement of
13 United States wotkers into jobs, and a report
14 on the changes in employment of United States
15 workers attributable to prior year expenditures.
16 "(C) DHS REPORT.-The Secretary of
17 Homeland Security shall report to the Congress
18 every 2 years on the iffectiveness of meeting
19 the goals set out by the Commonwealth govern-
20 ment in its annual plan for the expenditure of
21 funds.";
22 (2) in subsection (6)-
23 (A) in paragraph ( 1), by striking 9 9 during
24 the transition period,"; and
25 (B) by adding at the end the following:
•S 1237 IS
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5
1 "(3) DURATION.-Notwithstanding any other
2 provision of this Act, the Secretary may classify
3 aliens pursuant to paragraph (1) until the date on
4 which the transition program terminates. If the
5 transition period is extended, the Secretary may con-
6 tinue to classify aliens pursuant to paragraph (1)
7 until the date on which all extensions are termi-
8 nated."; and
9 (3) in subsection (d)(2), by striking "December
10 31, 2014" and inserting "December 31, 2019".
11 SEC. 6. STUDY OF ELECTRIC RATES IN THE INSULAR
12 AREAS.
13 (a) DEFINITIONS.-In this section:
14 (1) COMPREHENSIVE ENERGY PLAN.-The term
15 "comprehensive energy plan" means a comprehen-
16 sive energy plan prepared and updated under sub-
17 sections (e) and (e) of section 604 of the Act entitled
18 "An Act to authorize appropriations for certain in-
19 sular areas of the United States, and for other pur-
20 poses", approved December 24, 1980 (48 U.S.C.
21 1492).
22 (2) ENERGY ACTION PLAN.-The term "energy
23 action plan" means the plan required by subsection
24 (d).
•S 1237 IS
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6
1 (3) FREELY ASSOCIATED STATES.-The term
2 "Freely Associated States" means the Federated
3 States of Micronesia, the Republic of the Marshall
4 Islands, and the Republic of Palau.
5 (4) INSULAR.AREAS.-The term "insular areas"
6 means American Samoa, the Commonwealth of the
7 Northern Mariana Islands, Puerto Rico, Guam, and
8 the Virgin Islands.
9 (5) SECRETARY.-The term "Seeretary means
10 the Secretary of the Interior.
11 (6) TEAM.-The term "team" means the team
12 established by the Secretary under subsection (b).
13 (b) ESTABLISHMENT.-Not later than 180 days after
14 the date of enactment of this Act, the Secretary shall,
15 within the Empowering Insular Communities activity, es-
16 tablish a team of technical, policy, and financial experts-
17 (1) to develop an energy action plan addressing
18 the energy needs of each of the insular areas and
19 Freely Associated States; and
20 (2) to assist each of the insular areas and Free-
21 ly Associated States in implementing such plan.
22 (C) PARTICIPATION OF REGIONAL UTI111'ry 01*JANI-
23 ZATIONS.-In establishing the team, the Secretary shall
24 consider including regional utility organizations.
•S 1237 IS
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7
1 (d) ENERGY ACTION PLAN.-In accordance with sub-
2 section (b), the energy action plan shall include-
3 (1) recommendations, based on the eomprehen-
4 sive energy plan where applicable, to-
5 (A) reduce reliance and expenditures on
6 imported fossil fuels;
7 (B) develop indigenous, nonfossil fuel en-
8 ergy sources; and
9 (C) improve performance of energy infra-
10 structure and overall energy efficiency;
11 (2) a schedule for implementation of such ree-
12 ommendations and identification and prioritization
13 of specific projects;
14 (3) a financial and engineering plan for imple-
15 menting and sustaining projects; and
16 (4) benchmarks for measuring progress toward
17 implementation.
18 (e) REPORTS TO SECRETARY.-Not later than 1 year
19 after the date on which the Secretary establishes the team
20 and annually thereafter, the team shall submit to the See-
21 retary a report detailing progress made in fulfilling its
22 charge and in implementing the energy action plan.
23 (f) ANNUAL REPORTS TO CONGRESS.-Not later
24 than 30 days after the date on which the Secretary re-
25 eeives a report submitted by the team under subsection
•S 1237 IS
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8
1 (e), the Secretary shall submit to the appropriate commit-
2 tees of Congress a summary of the report of the team.
3 SEC. 7. CHIEF FINANCIAL OFFICER OF THE VIRGIN IS-
4 LANDS.
5 (a) REFERENDUM.-As part of the next regularly
6 scheduled, islands-wide election in the Virgin Islands after
7 the date of enactment of this Act, the Board of Elections
8 of the Virgin Islands shall hold a referendum to seek the
9 approval of the people of the Virgin Islands regarding
10 whether the position of Chief Financial Officer of the Gov-
11 ernment of the Virgin Islands shall be established as a
12 part of the executive branch of the Government of the Vir-
13 gin Islands. The referendum shall be binding and con-
14 dueted according to the laws of the Virgin Islands, except
15 that the results shall be determined by a majority of the
16 ballots cast.
17 (b) CILIEF FINANCIAL OFFICER OF TIIE VIRGIN Is-
18 LANDS.-
19 (1) APPOINTMENT OF CIIIEF FINANCIAL OFFI-
20
21 (A) IN GENERAL.-If the majority of bal-
22 lots east in a referendum under subsection (a)
23 approve the establishment of the position of
24 Chief Financial Officer of the Government of ,
25 the Virgin Islands, the Governor of the Virgin
•S 1237 IS
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9
1 Islands shall appoint a Chief Financial Officer,
2 with the advice and consent of the Legislature
3 of the Virgin Islands, from the names on the
4 list required under subsection (b) (4). If the
5 Governor has nominated a person for Chief Fi-
6 nancial Officer but the Legislature of the Virgin
7 Islands has not confirmed a nominee within 90
8 days after receiving the list pursuant to sub-
9 section (b)(4), the Governor shall appoint from
10 such list a Chief Financial Officer on an acting
11 basis until the Legislature consents to a Chief
12 Financial Officer.
13 (B) AcTING CHIEF FINANCIAL OFFICER.-
14 If a Chief Finaneial Officer has not been ap-
15 pointed under subparagraph (A) within 180
16 days after the date of the enactment of this
17 Act, the Virgin Islands Chief Financial Officer
18 Search Commission, by majority vote, shall ap-
19 point from the names on the list submitted
20 under subsection (b) (4), an Acting Chief Finan-
21 cial Officer to serve in that capacity until a
22 Chief Financial Officer is appointed under the
23 first sentence of subparagraph (A). In either
24 ease, if the Acting Chief Financial Officer
25 serves in an acting capacity for 180 consecutive
•S 1237 IS
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10
1 days, without further action the Acting Chief
2 Financial Officer shall become the Chief Finan-
3 cial Officer.
4 (2) DUTIES OF CHIEF FINANCIAL OFFICER.-
5 The duties of the Chief Financial Officer shall in-
6 elude the following:
7 (A) Develop and report on the financial
8 status of the Government of the Virgin Islands
9 not later than 6 months after appointment and
10 quarterly thereafter. Such reports shall be
11 available to the public.
12 (B) Each year prepare and certify spend-
13 ing limits of the annual budget, including an-
14 nual estimates of all revenues of the territory
15 without regard to sources, and whether or not
16 the annual budget is balanced.
17 (C) Revise and update standards for finan-
18 cial management, including inventory and con-
19 tracting, for the Government of the Virgin Is-
20 lands in general and for each agency in con-
21 junction with the agency head.
22 (3) DocUMENTS PROVIDED.-The heads of
23 each department of the Government of the Virgin Is-
24 lands, in particular the head of the Department of
25 Finance of the Virgin Islands and the head of the
•S 1237 IS
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11
1 Internal Revenue Bureau of the Virgin Islands shall
2 provide all documents and information under the ju-
3 risdietion of that head that the Chief Financial Offi-
4 cer considers required to carry out his or her fune-
5 tions to the Chief Financial Officer.
6 (4) CON[)ITIONS RELATED TO CHIEF FINANCIAL
7 OFFICER.-
8 (A) TERM.-The Chief Financial Officer
9 shall be appointed for a term of 5 years.
10 (B) REMOVAL.-The Chief Financial Offi-
11 eer shall not be removed except for cause. An
12 Acting Chief Financial Officer may be removed
13 for cause or by a Chief Financial Officer ap-
14 pointed with the advice and consent of the Leg-
15 islature of the Virgin Islands.
16 (C) REPLACEMENT.-If the Chief Finan-
17 cial Officer is unable to eontinue acting in that
18 eapaeity due to removal, illness, death, or other-
19 wise, another Chief Financial Officer shall be
20 selected in accordance with paragraph ( 1).
21 (D) SALARY.-The Chief Financial Officer
22 shall be paid at a salary to be determined by
23 the Governor of the Virgin Islands, except such
- 24 rate may not be less than the highest rate of
25 pay for a cabinet officer of the Government of
•S 1237 IS
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12
1 the Virgin Islands or a Chief Financial Officer
2 serving in any government or semiautonomous
3 agency.
4 (c) ESTABLISHMENT OF COMMISSION.-
5 (1) ESTABLISHMENT.-There is established a
6 commission to be known as the "Virgin Islands
7 Chief Financial Officer Search Commission".
8 (2) DUTY OF COMMISSION.-The Commission
9 shall recommend to the Governor not less than 3
10 candidates for nomination as Chief Financial Officer
11 of the Virgin Islands. Each candidate must have
12 demonstrated ability in general management of,
13 knowledge of, and extensive practical experience at
14 the highest levels of financial management in gov-
15 ernmental or business entities and must have experi-
16 enee in the development, implementation, and oper-
17 ation of financial management systems.
18 (3) MEN[13ERSIIIP.-
19 (A) NUMBER AND APPOINTMENT.-The
20 Commission shall be composed of 8 members
21 appointed not later than 30 days after the date
22 of the enactment of this Act. Persons appointed
23 as members must have recognized business,
24 government, or financial expertise and experi-
25 enee and shall be appointed as follows:
•S 1237 IS
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13
1 (i) 1 individual appointed by the Gov-
2 ernor of the Virgin Islands.
3 (ii) 1 individual appointed by the
4 President of the Legislature of the Virgin
5 Islands.
6 (iu) 1 individual, who is an employee
7 of the Government of the Virgin Islands,
8 appointed by the Central Labor Council of
9 the Virgin Islands.
10 (iv) 1 individual appointed by the
11 Chamber of Commerce of St. Thomas-St.
12 John.
13 (v) 1 individual appointed by the
14 Chamber of Commerce of St. Croix
15 (vi) 1 individual appointed by the
16 President of the University of the Virgin
17 Islands.
18 (vii) 1 individual, who is a resident of
19 St. John, appointed by the At-Large Mem-
20 ber of the Legislature of the Virgin Is-
21 lands.
22 (viii) 1 individual appointed by the
23 President of AARP Virgin islands.
24 (B) TERMS.-
•S 1237 LS
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14
1 (i) IN GENERAL.-Each member shall
2 be appointed for the life of the Commis-
3 sion.
4 (ii) VACANCIES.-A vacancy in the
5 Commission shall be filled in the manner
6 in which the original appointment was
7 made. Any member appointed to fill a va-
8 cancy shall be appointed for the remainder
9 of that term.
10 (C) BASIC PAY.-Members shall serve
11 without pay.
12 (D) QUORUM.-Five members of the Com-
13 mission shall constitute a quorum.
14 (E) CIIAIRPERSON.-The Chairperson of
15 the Commission shall be the Chief Justice of
16 the Supreme Court of the United States Virgin
17 Islands or the designee of the Chief Justice.
18 The Chairperson shall serve as an ex officio
19 member of the Commission and shall vote only
20 in the ease of a tie.
21 (F) MEETINGS.-The Commission shall
22 meet at the call of the Chairperson. The Com-
23 mission shall meet for the first time not later
24 than 15 days after all members have been ap-
25 pointed under this subsection.
•S 1237 IS
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15
1 (G) GOVERNMENT EMPLOYMENT.-Mem-
2 bers may not be current government employees,
3 except for the member appointed under sub-
4 paragraph (A) (iii).
5 (4) REPORT; RECOMMENDATIONS.-The Com-
6 mission shall transmit a report to the Governor, the
7 Committee on Natural Resources of the House of
8 Representatives and the Committee on Energy and
9 Natural Resources of the Senate not later than 60
10 days after its first meeting. The report shall name
11 the Commission's recommendations for candidates
12 for nomination as Chief Financial Officer of the Vir-
13 gin Islands.
14 (5) TERMINATION.-The Commission shall ter-
15 minate upon the nomination and confirmation of the
16 Chief Financial Officer.
17 (d) DEFINITIONS.-For the purposes of this section,
18 the following definitions apply:
19 (1) CHIEF FINANCIAL OFFICER.-In sub-
20 sections (a) and (b), the term "Chief Financial Offi-
21 eer" means a Chief Financial Officer or Acting
22 Chief Financial Officer, as the case may be, ap-
23 pointed under subsection (a)(1).
24 (2) COMMISSION.-The term "Commission"
25 means the Virgin Islands Chief Financial Officer
•S 1237 IS
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16
1 Search Commission established pursuant to sub-
2 section (b).
3 (3) GOVERNOR.-The term "Governor" means
4 the Governor of the Virgin Islands.
.5 (4) REMOVAL FOR CAUSE.-The term "removal
6 for cause" means removal based upon misconduct,
7 failure to meet job requirements, or any grounds
8 that a reasonable person would find grounds for dis-
9 charge.
10 SEC. 8. REPORTS ON ESTIMATES OF REVENUES.
11 The Comptroller General of the United States shall
12 submit to the appropriate committees of Congress a report
13 that-
14 (1) evaluates whether the annual estimates or
15 forecasts of revenue and expenditure of American
16 Samoa, the Commonwealth of the Northern Mariana
17 Islands, Puerto Rico, Guam, and the Virgin Islands
18 are reasonable; and
19 (2) as the Comptroller General of the United
20 States determines to be necessary, makes ree-
21 ommendations for improving the process for devel-
22 oping estimates or forecasts.
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1 SEC. 9. LOW-INCOME HOME ENERGY ASSISTANCE PRO-
2 GRAM.
3 With respect to fiscal years 2014 through 2017, the
4 percentage described in section 2605(b)(2)(B)(i) of the
5 Low-Income Home Energy Assistance Aet of 1981 (42
6 U.S.C. 8624(b)(2)(B)(i)) shall be 300 percent when ap-
7 plied to households located in the Virgin Islands.
8 SEC. 10. CASTLE NUGENT NATIONAL HISTORIC SITE ESTAB-
9 LISHMENT.
10 (a) DEFINITIONS.-In this section:
11 (1) HISTORIC SITE.-The term "historic site"
12 means the Castle Nugent National Historic Site es-
13 tablished in subsection (b).
14 (2) SECRETARY.-The term 9 'Secretary" means
15 the Secretary of the Interior.
16 (b) CASTLE NUGENT NATIONAL HISTORIC SITE.-
17 (1) ESTABLISHMENT.-There is established as
18 a unit of the National Park System the Castle
19 Nugent National Historic Site on the Island of St.
20 Croix, U.S. Virgin Islands, in order to preserve, pro-
21 teet, and interpret, for the benefit of present and fu-
22 ture generations, a Caribbean cultural landscape
23 that spans more than 300 years of agricultural use,
24 significant archeologieal resources, mangrove forests,
25 endangered sea turtle nesting beaches, an extensive
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1 barrier coral reef system, and other outstanding nat-
2 ural features.
3 (2) BouNDAIUES.-The historic site consists of
4 the approximately 2,900 acres of land extending
5 from Lowrys Hill and Laprey Valley to the Carib-
6 bean Sea and from Manehenil Bay to Great Pond,
7 along with associated submerged lands to the three-
8 mile territorial limit, as generally depicted on the
9 map titled 9 'Castle Nugent National Historic Site
10 Proposed Boundary Map", numbered T22/100,447,
11 and dated October 2009.
12 (3) MAP AVAH~ABI[jITY.-The map referred to
13 in paragraph (2) shall be on file and available for
14 public inspection in the appropriate offices of the
15 National Park Service, Department of the Interior.
16 (4) ACQUISITION OF LAND.-
17 (A) IN GENERAL.-Except as provided in
18 subparagraph (B), the Secretary is authorized
19 to acquire lands and interests in lands within
20 the boundaries of the historic site by donation,
21 purchase with donated funds, or exchange.
22 (B) U.S. VIRGIN ISLAND LANDS.-The
23 Secretary is authorized to acquire lands and in-
24 terests in lands owned by the U.S. Virgin Is-
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1 lands or any political subdivision thereof only
2 by donation or exchange.
3 (e) ADMINISTRATION.-
4 (1) IN GENERAL.-The Secretary shall admin-
5 ister the historic site in accordance with this Act
6 and with laws generally applicable to units of the
7 National Park System, including-
8 (A) the National Park Service Organic Aet
9 (39 Stat. 535; 16 U.S.C. 1 et seq.); and
10 (B) the Act of August 21, 1935 (49 Stat.
11 666; 16 U.S.C. 461 et seq.).
12 (2) SHARED RESOURCES.-To the greatest ex-
13 tent practicable, the Secretary shall use the re-
14 sources of other sites administered by the National
15 Park Service or other Federal assets on the Island
16 of St. Croix to administer the historic site.
17 (3) CONTINUED USE.-In order to maintain an
18 important feature of the cultural landscape of the
19 historic site, the Secretary may lease to the Univer-
20 sity of the -Virgin Islands certain lands within the
21 boundary of the historic site for the purpose of con-
22 tinuing the university's operation breeding Senepol
23 cattle, a breed developed on St. Croix. A lease under
24 this subsection shall contain such terms and condi-
25 tions as the Secretary considers appropriate, includ-
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20
1 ing those necessary to protect the values of the his-
2 torie site.
3 (4) MANAGEMENT PLAN.-Not later than three
4 years after funds are made available for this sub-
5 section, the Secretary shall prepare a general man-
6 agement plan for the historic site.
7 SEC. 11. ST. CROIX NATIONAL HERITAGE AREA.
8 (a) DEFINITIONS.-In this section:
9 (1) HERITAGE AREA.-The term "Heritage
10 Area" means the St. Croix National Heritage Area
11 established by subsection (b)(1).
12 (2) LOCAL COORDINATING ENTITY.-The term
13 "local coordinating entity" means the local coordi-
14 nating entity for the Heritage Area designated by
15 subsection (b)(4).
16 (3) MANAGEMENT PLAN.-The term "manage-
17 ment plan" means the management plan for the
18 Heritage Area required under subsection (d).
19 (4) MAP.-The term "map" means the map en-
20 titled "Proposed St. Croix National Heritage Area"
21 and dated [
22 (5) SECRETARY.-The term "Secretary" means
23 the Secretary of the Interior.
24 (6) STATE.-The term ~ ' State" means St.
25 Croix, U.S. Virgin Islands.
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1 (b) ST. CROIX NATIONAL HERITAGE AREA.-
2 ( 1) ESTABLISHMENT.-There is established in
3 the State the St. Croix National Heritage Area.
4 (2) CONCEPTUAL BOUNDARIES.-The Heritage
5 Area shall consist of the entire island.
6 (3) MAP.-A map of the Heritage Area shall
7 be-
8 (A) included in the management plan; and
9 (B) on file and available for public inspee-
10 tion in the appropriate offices of the National
11 Park Service.
12 (4) LOCAL COORDINATING ENTITY.-
13 (A) IN GENERAL.-The local coordinating
14 entity for the Heritage Area shall be known as
15 St. Croix United for Community, Culture, Envi-
16 ronment, and Economic Development (SUC-
17 CEED) Inc.
18 (B) MEMBERSHIP REQUIREMENTS.-Mem-
19 bership in SUCCEED, Ine. shall be open to a
20 broad cross-section of public, private, and non-
21 governmental sectors including businesses, indi-
22 viduals, ageneies, and organizations that were
23 involved in the planning and development of the
24 Heritage Area prior to the enactment of this
25 Act.
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4
*
1 (e) ADMINISTRATION.-
2 (1) AuTHORI'TIES.-For purposes of carrying
3 out the management plan, the Secretary, acting
4 through the local coordinating entity, may use
5 amounts made available under this section to-
6 (A) make grants to the State or a political
7 subdivision of the State, nonprofit organiza-
8 tions, and other persons;
9 (B) enter into cooperative agreements
10 with, or provide technical assistance to, the
11 State or a political subdivision of the State,
12 nonprofit organizations, and other interested
13 parties;
14 (C) hire and compensate staff, which shall
15 include individuals with expertise in natural,
16 cultural, and historical resources protection,
17 and heritage programming;
18 (D) obtain money or services from any
19 source including any that are provided under
20 any other Federal law or program;
21 (E) contract for goods or services; and
22 (F) undertake to be a catalyst for any
23 other activity that furthers the Heritage Area
24 and is consistent with the approved manage-
25 ment plan.
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1 (2) DuTIES.-The local coordinating entity
2 shall
3 (A) in accordance with subsection (d), pre-
4 pare and submit a management plan for the
5 Heritage Area to the Secretary;
6 (B) assist units of local government, re-
7 gional planning organizations, and nonprofit or-
8 ganizations in carrying out the approved man-
9 agement plan by-
10 (i) carcing out programs and projects
11 that recognize, protect, and enhance im-
12 portant resource values in the Heritage
13 Area;
14 (ii) establishing and maintaining in-
15 terpretive exhibits and programs in the
16 Heritage Area;
17 (iii) developing recreational and edu-
18 eational opportunities in the Heritage
19 Area;
20 (iv) increasing public awareness of,
21 and appreciation for, natural, historical,
22 scenic, and cultural resources of the Herit-
23 age Area;
24 (v) protecting and restoring historic
25 sites and buildings in the Heritage Area
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1 that are consistent with Heritage Area
2 themes;
3 (vi) ensuring that clear, consistent,
4 and appropriate signs identify~ng points of
5 public access, and sites of interest are
6 posted throughout the Heritage Area; and
7 · (vii) promoting a wide range of part-
8 nerships among governments, organiza-
9 tions, and individuals to further the Herit-
10 age Area;
11 (C) consider the interests of diverse units
12 of government, businesses, organizations, and
13 individuals in the Heritage Area in the prepara-
14 tion and implementation of the management
15 plan;
16 (D) conduct meetings open to the public at
17 least semiannually regarding the development
18 and implementation of the management plan;
19 (E) for any year that Federal funds have
20 been received under this section-
21 (i) submit an annual report to the
22 Secretary that describes the activities, ex-
23 penses, and income of the local coordi-
24 nating entity (including grants to any
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1 other entities during the year that the re-
2 port is made);
3 (ii) make available to the Secretary
4 for audit all records relating to the expend-
5 iture of the funds and any matching funds;
6 and
7 (iii) require, with respect to all agree-
8 ments authorizing expenditure of Federal
9 funds by other organizations, that the or-
10 ganizations receiving the funds make avail-
11 able to the Secretary for audit all records
12 concerning the expenditure of the funds;
13 and
14 (F) encourage by appropriate means eco-
15 non*e viability that is consistent with the Herit-
16 age Area.
17 (3) PROHIBITION ON TI-IE ACQUISITION OF
18 REAL PROPERTY.-The local coordinating entity
19 shall not use Federal funds to acquire real property
20 or any interest in real property.
21 (d) MANAGEMENT PLAN.-
22 (1) IN GENERAL.-Not later than 3 years after
23 the date of enactment of this Aet, the local coordi-
24 nating entity shall submit to the Secretary for ap-
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1 proval a proposed management plan for the Heritage
2 Area.
3 (2) REQUIREMENTS.-The management plan
4 shall-
5 (A) incorporate an integrated and coopera-
6 tive approach for the protection, enhancement,
7 and interpretation of the natural, cultural, his-
8 torie, scenic, and recreational resources of the
9 Heritage Area;
10 (B) take into consideration State and local
11 plans;
12 (C) include-
13 (i) an inventory of-
14 (I) the resources located in the
15 core area' described in subsection
16 (b)(2); and
17 (II) any other property in the
18 core area that-
19 (aa) is related to the themes
20 of the Heritage Area; and
21 (bb) should be preserved, re-
22 stored, managed, or maintained
23 because of the significance of the
24 property;
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1 (ii) describe comprehensive policies,
2 goals, strategies and recommendations for
3 telling the story of the heritage of the area
4 covered by the designation and eneour-
5 aging long-term resource protection, en-
6 haneement, interpretation, funding, man-
7 agement, and development;
8 (iii) a deseription of actions that gov-
9 ernments, private organizations, and indi-
10 viduals have agreed to take to protect the
11 natural, historical and cultural resources of
12 the Heritage Area;
13 (iv) a program of implementation for
14 the management plan by the local eoordi-
15 nating entity that includes a description
16 of-
17 (I) actions to facilitate ongoing
18 collaboration among partners to pro-
19 mote plans for resource protection,
20 restoration, and construction; and
21 (II) specific commitments for im-
22 plementation that have been made by
23 the local coordinating entity or any
24 government, organization, or indi-
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1 vidual for the first 5 years of oper-
2 ation;
3 (v) the identification of sources of
4 funding for carrying out the management
5 plan;
6 (vi) analysis and recommendations for
7 means by which local, State, and Federal
8 programs, niay best be coordinated to
9 carry out this section; and
10 (vii) a business plan that describes the
11 role, operation, financing, and functions of
12 the local coordinating entity and of each of
13 the major activities contained in the man-
14 agement plan and provides adequate assur-
15 ances that the local coordinating entity has
16 the partnerships and financial and other
17 resources necessary to implement the man-
18 agement plan for the National Heritage
19 Area; and
20 (D) recommend policies and strategies for
21 resource management that consider and detail
22 the application .of appropriate land and water
23 management techniques, including the develop-
24 ment of intergovernmental and interagency co-
25 operative agreements to proteet the natural,
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1 historical, cultural, educational, scenic, and ree-
2 reational resources of the Heritage Area.
3 (3) DEADLINE.-If a proposed management
4 plan is not submitted to the Secretary by the date
5 that is 3 years after the date of enactment of this
6 Act, the local coordinating entity shall be ineligible
7 to receive additional funding under this section until
8 the date that the Secretary receives and approves
9 the management plan.
10 (4) ApPROVAL OR DISAPPROVAL OF MANAGE-
11 MENT PLAN.-
12 (A) IN GENERAL.-Not later than 180
13 days after the date of receipt of the manage-
14 ment plan under paragraph (1), the Secretary,
15 in consultation with the State, shall approve or
16 disapprove the management plan.
17 (B) CRITERIA FOR APPROVAL.-In deter-
18 mining whether to approve the management
19 plan, the Secretary shall consider whether-
20 (i) the local coordinating entity is rep-
21 resentative of the diverse interests of the
22 Heritage Area, including governments, nat-
23 ural and historic resource protection orga-
24 nizations, educational institutions, busi-
25 nesses, and recreational organizations;
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1 (ii) the local coordinating entity has
2 afforded adequate opportunity, including
3 public hearings, for public and govern-
4 mental involvement in the preparation of
5 the management plan; and
6 (iii) the resource protection and inter-
7 pretation strategies contained in the man-
8 agement plan, if implemented, would ade-
9 quately protect the natural, historical, and
10 cultural resources of the Heritage Area.
11 (C) ACTION FOLLOWING DISAPPROVAL.-If'
12 the Secretary disapproves the management plan
13 under subparagraph (A), the Secretary shall-
14 (i) advise the local eoordinating entity
15 in writing of the reasons for the dis-
16 approval;
17 (ii) make recommendations for revi-
18 sions to the management plan; and
19 (iii) not later than 180 days after the
20 receipt of any proposed revision of the
21 management plan from the local coordi-
22 nating entity, approve or disapprove the
23 proposed revision.
24 (D) AMENDMENTS.-
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1 (i) IN GENERAL.-The Seeretary shall
2 approve or disapprove each amendment to
3 the management plan that the Secretary
4 determines make a substantial change to
5 the management plan.
6 (ii) USE OF FUNDS.-The local eo-
7 ordinating entity shall not use Federal
8 funds authorized by this section to carry
9 out any amendments to the management
10 plan until the Secretary has approved the
11 amendments.
12 (e) RELATIONSHIP TO OTHER FEDERAL AGEN-
13 CIES.-
14 (1) IN GENERAL.-Nothing in this section af-
15 feets the authority of a Federal agency to provide
16 technical or financial assistance under any other law.
17 (2) CONSULTATION AND COORDINATION.-The
18 head of any Federal agency planning to conduct ae-
19 tivities that may have an impact on the Heritage
20 Area is encouraged to consult and coordinate the ae-
21 tivities with the Secretary and the local coordinating
22 entity to the maximum extent practicable.
23 (3) OTHER FEDERAL AGENCIES.-Nothing in
24 this section-
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1 (A) modifies, alters, or amends any law or
2 regulation authorizing a Federal agency to
3 manage Federal land under the jurisdiction of
4 the Federal agency;
5 (B) limits the discretion of a Federal land
6 manager to implement an approved land use
7 plan wdthin the boundaries of the Heritage
8 Area; or
9 (C) modifies, alters, or amends any author-
10 ized use of Federal land under the jurisdiction
11 of a Federal agency.
12 (f) PRIVA'1'12 PROPERTY AND REGULATORY PROTEC-
13 TIONS.-Nothing in this section-
14 (1) abridges the rights of any property owner
15 (whether public or private), including the right to re-
16 frain from participating in any plan, project, pro-
17 gram, or activity conducted within the Heritage
18 Area;
19 (2) requires any property owner to permit pub-
20 lie aeeess (including access by Federal, State, or
21 local agencies) to the property of the property
22 owner, or to modify public access or use of property
23 of the property owner under any other Federal,
24 State, or local law;
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1 (3) alters any duly adopted land use regulation,
2 approved land use plan, or other regulatory author-
3 ity of any Federal, State, or local agency, or conveys
4 any land use or other regulatory authority to the
5 local coordinating entity;
6 (4) authorizes or implies the reservation or ap-
7 propriation of water or water rights;
8 (5) diminishes the authority of the State to
9 manage fish and wildlife, ineluding the regulation of
10 fishing and hunting within the Heritage Area; or
11 (6) creates any liability, or affects any liability
12 under any other law, of any private property ~ owner
13 with respect to any person injured on the private
14 property.
15 (g) EVALUATION; REPORT.-
16 (1) IN GENERAL.-Not later than 3 years be-
17 fore the date on which authority for Federal funding
18 terminates for the Heritage Area, the Secretary
19 shall-
20 (A) conduct an evaluation of the accom-
21 plishments of the Heritage Area; and
22 (B) prepare a report in accordance with
23 paragraph (3).
24 (2) EVALUATION.-An evaluation conducted
25 under paragraph (1) (A) shall-
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1 (A) assess the progress of the local coordi-
2 nating entity with respect to-
3 (i) accomplishing the purposes of this
4 section for the Heritage Area; and
5 (ii) achieving the goals and objectives
6 of the approved management plan for the
7 Heritage Area;
8 (B) analyze the Federal, State, local, and
9 private investments in the Heritage Area to de-
10 termine the leverage ~ind impact of the invest-
11 ments; and
12 (C) review the management structure,
13 partnership relationships, and funding of the
14 Heritage Area for purposes of identiGing the
15 critical components for sustainability of the
16 Heritage Area.
17 (3) Rispown-
18 (A) IN GENERAL.-Based on the evalua-
19 tion conducted under paragraph (1) (A), the
20 Secretary shall prepare a report that includes
21 recommendations for the future role of the Na-
22 tional Park Service, if any, with respect to the
23 Heritage Area.
24 (B) REQUIRED ANALYSIS.-If the report
25 prepared under subparagraph (A) recommends
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1 that Federal funding for the Heritage Area be
2 reauthorized, the report shall include an anal-
3 ysis of-
4 (i) ways in which Federal funding for
5 the Heritage Area may be reduced or
6 eliminated; and
7 (ii) the appropriate time period nec-
8 essary to achieve the recommended redue-
9 tion or elimination.
10 (C) SUBMISSION TO CONGRESS.-On com-
11 pletion of the report, the Secretary shall submit
12 the report to-
13 (i) the Committee on Energy and
14 Natural Resources of the Senate; and
15 (ii) the Committee on Natural Re-
16 sources of the House of Representatives.
17 (h) TERMINATION oF AUTHORITY.-The authority of
18 the Secretary to provide assistance under this section ter-
19 minates on the date that is 15 years after the date of en-
20 actment of this Act.
21 SEC. 12. GUAM WAR CLAIMS REVIEW COMMISSION.
22 (a) RECOGNITION OF THE SUFFERING AND LOYALTY
23 OF THE RESIDENTS OF GuAM.-
24 (1) RECOGNITION OF THE SUFFERING OF THE
25 RESIDENTS OF GUA]M.-The United States recog-
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1 nizes that, as described by the Guam War Claims
2 Review Commission, the residents of Guam, on ae-
3 count of their United States nationality, suffered un-
4 speakable harm as a result of the occupation of
5 · Guam by Imperial Japanese military forces during
6 World War II, by being subjected to death, rape, se-
7 vere personal injury, personal injury, forced labor,
8 forced march, or internment.
9 (2) REC()GNITION OF THE LOYALTY OF THE
10 RESIDENTS OF GUAM.-The United States forever
11 will be grateful to· the residents of Guam for their
12 steadfast loyalty to the United States, as dem-
13 onstrated by the countless acts of eoura ge they per-
14 formed despite the Lhreat of death or great bodily
15 harm they faced at the hands of the Imperial Japa-
16 nese military forces that occupied Guam during
17 World War II.
18 (b) GUAM WORLD WAR II CIJAIMS FUND.-
19 (1) ESTABLISHMENT OF FUND.-The Secretary
20 of the Treasury shall establish in the Treasury of
21 the United States a special fund (in this Act re-
22 ferred to as the ' ~ Claims Fund" ) for the payment of
23 claims submitted by compensable Guam victims and
24 survivors of compensable Guam decedents in accord-
25 ance with subsections (c) and (d).
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1 (2) COMPOSITION OF FUND.-The Claims Fund
2 established under paragraph (1) shall be composed
3 of amounts deposited into the Claims Fund under
4 paragraph (3) and any other amounts made avail-
5 able for the payment of claims under this Act.
6 (3) PAYMENT OF CERTAIN DUTIES, TAXES, AND
7 FEES COLLECTED FROM GUAM DEPOSITED INTO
8 FUND.-
9 (A) IN GENERAL.-Notwithstanding see-
10 tion 30 of the Organic Aet of Guam (48 U.S.C.
11 1421h), the excess of-
12 (i) any amount of duties, taxes, and
13 fees collected under such subsection after
14 fiscal year 2012, over
15 (ii) the amount of duties, taxes, and
16 fees collected under such subsection during
17 fiscal year 2012,
18 shall be deposited into the Claims Fund.
19 (B) APPLICATION.-Subparagraph (A)
20 shall not apply after the date for which the See-
21 retary of the Treasury determines that all pay-
22 ments required to be made under subsection (e)
23 have been made.
24 (4) LIMITATION ON PAYMENTS MADE FROM
25
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1 (A) IN GENERAL.-NO payment may be
2 made in a fiscal year under subsection (c) until
3 funds are deposited into the Claims Fund in
4 such fiscal year under paragraph (3).
5 (B) AMouNTS.-For each fiscal year in
6 which funds are deposited into the Claims Fund
7 under paragraph (3), the total amount of pay-
8 ments made in a fiscal year under subsection
9 (e) may not exeeed the amount of funds avail-
10 able in the Claims Fund for such fiscal year.
11 (5) DEDUCTIONS FROM FUND FOR ADMINIS-
12 TRATIVE EXPENSES.-The Secretary of the Treasury
13 shall deduet from any amounts deposited into the
14 Claims Fund an amount 'equal to 5 per cent of such
15 amounts as reimbursement to the Federal Govern-
16 ment for expenses incurred by the Foreign Claims
17 Settlement Commission and by the Department of
18 the Treasury in the administration of this Act. The
19 amounts so deducted shall be covered into the
20 Treasury as miscellaneous receipts.
21 (e) PAYMENTS FOR GUAM WORLD WAR II CLAIMS.-
22 (1) PAYMENTS FOR DEATH, PERSONAL INJURY,
23 FORCED LABOR, FORCED MARCH, AND INTERN-
24 MENT.-After the Secretary of the Treasury receives
25 the certification from the Chairman of the Foreign
•S 1237 IS
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39
1 Claims Settlement Commission as required under
2 subsection (d)(2)(H), the Secretary of the Treasury
3 shall make payments to compensable Guam victims
4 and survivors of a compensable Guam decedents as
5 follows:
6 (A) COMPENSABLE GUAM VICTIM.-Before
7 making any payments under subparagraph (B),
8 the Secretary shall make payments to compen-
9 sable Guam victims as follows:
10 (i) In the ease of a victim who has
11 suffered an injury described in paragraph
12 (3)(B)(i), $15,000.
13 (ii) In the case of a victim who is not
14 described in clause (i), but who has suf-
15 fered an injury described in paragraph
16 (3)(B)(ii), $12,000.
17 (iii) In the ease of a victim who is not
18 described in clause (i) or (ii), but who has
19 suffered an injury described in paragraph
20 (3)(B)(ili), $10,000.
21 (B) SURVIVORS OF COMPENSABLE GUAM
22 DECEDENTS.-In the ease of a eompensable
23 Guam deeedent, the Secretary shall pay
24 $25,000 for distribution to survivors of the de-
25 cedent in accordance with paragraph (2). The
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1 Secretary shall make payments under this para-
2 graph only after all payments are made under
3 subparagraph (A).
4 (2) DISTRIBUTION OF SURVIVOR PAYMENTS.-
5 A payment made under paragraph (1)(B) to the sur-
6 vivors of a compensable Guam deeedent shall be dis-
7 tributed as follows:
8 (A) In the ease of a decedent whose spouse
9 is living as of the date of the enactment of this
10 Aet, but who had no liv~ng children as of such
11 date, the payment shall be made to such
12 spouse.
13 (B) lIn the ease of a deeedent whose spouse
14 is living as of the date of the enactment of this
15 Act and who had one or more liv~ng children as
16 of such date, 50 percent of the payment shall
17 be made to the spouse and 50 percent shall be
18 made to such children, to be divided among
19 such children to the greatest extent possible
20 into equal shares.
21 (C) In the ease of a deeedent whose spouse
22 is not living as of the date of the enactment of
23 this Act and who hAd one or more living chil-
24 dren as of such date, the payment shall be
25 made to such children, to be divided among
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1 such children to the greatest extent possible
2 into equal shares.
3 (D) In the ease of a decedent whose spouse
4 is not living as of the date of the enactment of
*
5 this Act and who had no living children as of
6 such date, but who-
7 (i) had a parent who is living as of
8 such date, the payment shall be made to
9 the parent; or
10 (ii) had two parents who are living as
11 of such date, the payment shall be divided
12 equally between the parents.
13 (E) In the ease of a deeedent whose spouse
14 is not living as of the date of the enactment of
15 this Act, who had no living children as of such
16 date, and who had no parents who are living as
17 of such date, no payment shall be made.
18 (3) DEFINITIONS.-For purposes of this Aet:
19 (A) COMPENSABLE GUAM DECEDENT.-
20 The term "compensable Guam deeedent" means
21 an individual determined under subsection (d)
22 to have been a resident of Guam who died as
23 a result of the attack and occupation of Guam
24 by Imperial Japanese military forces during
25 World War II, or incident to the liberation of
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1 Guam by United States military forces, and
2 whose death would have been compensable
3 under the Guam Meritorious Claims Aet of
4 1945 (Public Law 79-224) if a timely claim
5 had been filed under the terms of such Act.
6 (B) COMPENSABIJE GUAM VICTIM.-The
7 term "compensable Guam victim" means an in-
8 divktual who is not deceased as of the date of
9 the enactment of this Act and who is deter-
10 mined under subsection (d) to have suffered, as
11 a result of the attack and occupation of Guam
12 by Imperial Japanese military forces during
13 World War II, or incident to the liberation of
14 Guam by United States military forces, any of
15 the following:
16 (i) Rape Or severe personal injury
17 (such as.loss of a limb, dismemberment, or
18 paralysis).
19 (8) Forced labor or a personal injury
20 not under subparagraph (A) (such as dis-
21 figurement, searring, or burns).
22 (iii) Forced march, internment, or
23 hiding to evade internment.
24 (C) DEFINITIONS OF SEVERE PERSONAL
25 INJURIES AND PERSONAL INJURIES.-Not later
•S 1237 IS
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1 than 180 days after the date of the enactment
2 of this Aet, the Foreign Claims Settlement
3 Commission shall promulgate regulations to
4 specify the injuries that constitute a severe per-
5 sonal injury or a personal injury for purposes of
6 subparagraphs (A) and (B), respectively, of
7 paragraph (2 ).
8 (d) ADJUDICATION.-
9 (1) AUTHORITY OF FOREIGN CLAIMS SETTLE-
10 MENT COMMISSION.-
11 (A) IN GENERAL.-The Foreign Claims
12 Settlement Commission shall adjudieate claims
13 and determine the eligibility of individuals for
14 payments under subsection (e).
15 (B) RuLES AND REGULATIONS.-Not later
16 than 180 days after the date of the enactment
17 of this Aet, the Chairman of the Foreign
18 Claims Settlement Commission shall publish in
19 the Federal Register such rules and regulations
20 as may be necessary to enable the Commission
21 to carry out the functions of the Commission
22 under this Act.
23 (2) CLAIMS SUBMI TT ED FOR PAYMENTS.-
24 (A) SUBMITTAL OF CLAIM.-For purposes
25 of paragraph (1)(A) and subject to subpara-
•S 1237 IS
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44
1 graph (B), the Foreign Claims Settlement Com-
2 mission may not determine an individual is eli-
3 gible for a payment under subsection (e) unless
4 the individual submits to the Commission a
5 claim in such manner and form and containing
6 such information as the Commission specifies.
7 03) FILING PERIOD FOR CLAIMS AND NO-
8 'ric:16.-
9 (i) FILING Plf]RIOD.-An individual fil-
10 ing a claim for a payment under subsection
11. (e) shall file such claim not later than one
12 year after the date on which the Foreign
13 Claims Settlement Commission publishes
14 the notice described in clause (ii).
15 (8) NOTICE OF FILING PERIOD.-Not
16 later than 180 days after the date of the
17 enactment of this Act, the Foreign Claims
18 Settlement Commission shall publish a no-
19 tice of the deadline for filing a claim de-
20 scribed in clause (i)-
21 (I) in the Federal Register; and
22 (II) in newspaper, radio, and tel-
23 evision media in Guam.
•S 1237 IS
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45
1 (C) ADJUDICATORY DECISIONS.-The deei-
2 sion of the Foreign Claims Settlement Commis-
3 sion on each claim filed under this Act shall-
4 (i) be by majority vote;
5 (ii) be in writing;
6 (iii) state the reasons for the approval
7 or denial of the claim; and
8 (iv) if approved, state the amount of
9 the payment awarded and the distribution,
10 if any, to be made of the payment.
11 (D) DEDUCTIONS IN PAYMENT.-The For-
12 eign Claims Settlement Commission shall de-
13 duet, from a payment made to a compensable
14 Guam victim or survivors of a compensable
15 Guam deeedent under this subsection, amounts
16 paid to such victim or survivors under the
17 Guam Meritorious Claims Aet of 1945 (Public
18 Law 79-224) before the date of the enactment
19 of this Aet.
20 (E) INTEREST.-No interest shall be paid
21 on payments made by the Foreign Claims Set-
22 tlement Commission under subsection (e).
23 (F) LIMITED COMPENSATION FOR PROVI-
24 SION OF REPRESENTATIONAL SERVICES.-
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1 (i) LIMIT ON COMPIONSATION.-Any
2 agreement under which an individual who
3 provided representational services to an in-
4 dividual who filed a claim for a payment
5 under this Act that provides for conipensa-
6 tion to the individual who provided such
7 services in an amount that is more than
8 , one percent of the total amount of such
9 payment shall be unlawful and void.
10 (ii) PENALTIES.-Whoever demands
11 or receives any compensation in excess of
12 the amount allowed under subparagraph
13 (A) shall be fined not more than $5,000 or
14 imprisoned not more than one year, or
15 both.
16 (G) APPEALS AND FINALITY.-Objections
17 and appeals of decisions of the Foreign Claims
18 Settlement Commission shall be to the Commis-
19 sion, and upon rehearing, the decision in each
20 claim shall be final, and not subject to further
21 review by any court or agency.
22 (H) CERTIFICATIONS FOR PAYMENT.-
23 After a decision approving a claim becomes
24 final, the Chairman of the Foreign Claims Set-
25 tlement Commission shall certify such decision
•S 1237 IS
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1 to the. Secretary of the Treasury for authoriza-
2 tion of a payment under subsection (e).
3 (I) TREATMENT OF AFFIDAVITS.-For
4 purposes of subsection (c) and subject to sub-
5 paragraph (B), the Foreign Claims Settlement
6 Commission shall treat a claim that is aecom-
7 panied by an affidavit of an individual that at-
8 tests to all of the material facts required for es-
9 tablishing the eligibility of such individual for
10 payment under such subsection as establishing
11 a prima facie ease of the eligibility of the indi-
12 vidual for such payment without the need for
13 further documentation, except as the Commis-
14 sion may otherwise require. Such material facts
15 shall include, with respect to a claim for a pay-
16 ment made under subsection (e)(1), a detailed
17 description of the injury or other circumstance
18 supporting the claim involved, ineluding the
19 level of payment sought.
20 (J) RELEASE OF RELATED CLAIMS.-Ae-
21 eeptance of a payment under subsection (e) by
22 an individual for a claim related to a compen-
23 sable Guam deeedent or a compensable Guam
24 victim shall be in full satisfaction of all claims
25 related to such decedent or victim, respectively,
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1 arising under the Guam Meritorious Claims Act
2 of 1945 (Public Law 79-224), the imple-
3 menting regulations issued by the United States
4 Navy pursuant to such Aet (Public Law 79-
5 224), or this Act.
6 SEC. 13. USE OF CERTAIN EXPENDITURES AS IN-KIND CON-
7 TRIBUTIONS.
8 (a) IN GENERAL.-Except as provided under sub-
9 section (e), local matching requirements required of an af-
10 feeted jurisdiction for Federal programs may be paid in
11 cash or in-kind services provided by the affected jurisdic-
12 tion pursuant to the following:
13 (1) Section 311 of the Compact of Free Asso-
14 ciation between the Government of the United
15 States and the Government of the Federated States
16 of Micronesia, approved in the Compact of Free As-
17 sociation Amendments Act of 2003 (Public Law
18 108-188; 117 Stat. 2781·).
19 (2) Section 311 of the Compact of Free Asso-
20 ciation between the Government of the United
21 States and the Government of the Republic of the
22 Marshall Islands, approved in the Compact of Free
23 Association Amendments Aet of 2003 (Public Law
24 108-188; 117 Stat. 2781).
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1 (3) The Compact of Free Association between
2 the Government of the United States and the Gov-
3 ernment of the Republic of Palau, approved in the
4 Palau Compact of Free Association Act (Public Law
5 99-658; 100 Stat. 3672).
6 (b) DETERMINATION OF AMOUNTS TO BE CONSID-
7 ERED IN-]KIND CONTRIBUTIONS.-The Secretary of the
8 Interior shall determine the amounts that may be consid-
9 ered in-kind contributions for an affected jurisdiction
10 under this section based on a reasonable estimate of the
11 amount of impact expenditures for the Freely Associated
12 States.
13 (e) COMPETITIVE GRANTS.-Local matching require-
14 ments required of an affected jurisdiction for Federal eom-
15 petitive grant programs may not be paid with in-kind serv-
16 ices under this section.
17 (d) AFFECTED JURISDICTIONS.-The term "affected
18 jurisdiction" shall have the meaning given that term in
19 section 104(e) of Public Law 108-188 (117 Stat. 2739).
20 SEC. 14. IMPROVEMENTS IN HUD ASSISTED PROGRAMS.
21 Section 214(a)(7) of the Housing and Community
22 Development Act of 1980 (42 U.S.C. 1436a(a)(7)) is
23 amended by striking "such alien" and all that follows
24 through the period at the end and inserting "any citizen
25 or national of the United States shall be entitled to a pref-
•S 1237 IS
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50
1 erence or priority in receiving assistance before any such ~
2 alien who is otherwise eligible for such assistance.".
3 SEC. 15. BENEFIT TO COST RATIO STUDY FOR PROJECTS IN
4 AMERICAN SAMOA.
5 (a) STuDY.-The Comptroller General of the United
6 States shall conduct a study regarding the use of benefit-
7 to-cost ratio formulas by Federal departments and agen-
8 eies for purposes of evaluating projects in American
9 Samoa.
10 (b) CONTENTS.-In conducting the study, the Comp-
11 troller General shall-
12 (1) assess whether the benefit-to-cost ratio for-
13 mulas described in subsection (a) take into consider-
14 ation-
15 (A) the remote locations in, and the cost of
16 transportation to and from, American Samoa;
17 and
18 (B) other significant factors that are not
19 comparable to locations within the 48 contig-
20 uous States; and
21 (2) assess, in particular, the use of benefit-to-
22 cost ratio formulas by-
23 (A) the Secretary of Transportation with
24 respect to airport traffic control tower pro- -
25 grams; and
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51
1 (B) the Secretary of the Army, acting
2 through the Corps of Engineers, with respect to
3 a harbor project or other water resources devel-
4 opment project.
5 (3) REPORT TO CONGRESS.-Not later than 1
6 year after the date of enactment of this Act, the
7 Comptroller General shall submit to Congress a re-
8 port on the results of the study.
9 SEC. 16. WAIVER OF LOCAL MATCHING REQUIREMENTS.
10 (a) WAIVER OF CERTAIN MATCHING REQUIRE-
11 MENTS.-Section 501 of the Act entitled "An Act to au-
12 thorize certain appropriations for the territories of the
13 United States, to amend certain Acts relating thereto, and
14 for other purposes", approved October 15, 1977 (48
15 U.S.C. 1469a; 91 Stat. 1164) is amended-
16 (1) in the last sentence of subsection (d), by
17 striking "by law"; and
18 (2) by adding at the end the following new sub-
19 section:
20 "(e) Notwithstanding any other provision of law, in
21 the ease of American Samoa, Guam, the Virgin Islands,
22 and the Northern Mariana Islands, each department or
23 agency of the United States shall waive any requirement
24 for local matching funds (including in-kind contributions)
•S 1237 IS
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52
1 that the insular area would otherwise be required to pro-
2 vide for any non-competitive grant as follows:
3 "(1) For a grant requiring matching funds (in-
4 cluding in-kind contributions) of $500,000 or less,
5 the entire matching requirement shall be waived.
6 "(2) For a grant requiring matching funds (in-
7 eluding in-kind contributions) of more than
8 $500,000, $500,000 of the matching requirement
9 shall be waived.".
10 (b) CONFORMING AMENDMENT.-Section 601 of the
11 Aet entitled "An Act to authorize appropriations for eer-
12 tain insular areas of the United States, and for other pur-
13 poses", approved March 12, 1980 (48 U.S.C. 1469a note;
14 94 Stat. 90), is amended by striking ", and adding the
15 following sentence" and all that follows through "Is-
16 lands'.".
17 SEC. 17. FISHERY ENDORSEMENTS.
18 Section 12113 of title 46, United States Code, is
19 amended by adding at the end the following:
20 "(j) CERTAIN ExEMPTION.-Paragraph (3) of sub-
21 section (a) shall not apply to any vessel-
22 "(1) the catch of ivhieh, pursuant to the fishery
23 endorsement, is offloaded and processed in American
24 Samoa; and
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53
1 "(2) that was rebuilt outside of the United
2 States before January 1, 2011.".
3 SEC. 18. EFFECTS OF MINIMUM WAGE DIFFERENTIALS IN
4 AMERICAN SAMOA
5 Section 8104 of the Fair Minimum Wage Aet of 2007
6 (29 U.S.C. 206 note) is amended by adding at the end
7 the following:
8 'Ke) EFFECTS OF MINIMUM WAGE DIFFERENTIALS
9 IN AMERICAN SAMOA.-The reports required under this
10 section shall include an analysis of the economic effects
11 on employees and employers of the differentials in min-
12 imum wage rates among industries and classifications in
13 American Samoa under section 697 of title 29, Code of
14 Federal Regulations, including the potential effects of
15 eliminating such differentials prior to the time when such
16 rates are seheduled to be equal to the minimum wage set
17 forth in section 6(a)(1) of the Fair Labor Standards Act
18 (29 U.S.C. 206(a)(1)).".
19 SEC. 19. AMERICAN SAMOA CITIZENSHIP PLEBISCITE ACT.
20 (a) SHORT TITLE.-This section may be cited as the
21 "American Samoa Citizenship Plebiscite Act".
22 (b) FINI)INGS AND PURPOSE.-
23 (1) FINDINGS.-Congress finds the following:
24 (A) Under the Immigration and Nation-
25 alt Aet, persons born in Puerto Rico, Guam,
•S 1237 IS
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54
1 the United States Virgin Islands, and the Com-
2 monwealth of the Northern Mariana Islands are
3 citizens of the United States at birth. Persons
4 born in the United States territory of American
5 Samoa are nationals of the United States, but
6 not citizens, at birth.
7 (B) The term "national of the United
8 States" is defined under the Immigration and
9 Nationality Act to include persons who, though
10 not citizens of the United States, owe perma-
11 nent allegiance to the United States.
12 (C) For more than 100 years, American
13 Samoans who are United States nationals have
14 demonstrated their loyalty and allegiance to the
15 United States. On April 17, 1900, the village
16 chiefs of Tutuila and Aunu'u eeded their is-
17 lands to the United States. On July 16, 1904,
18 his Majesty King Tuimanu'a of the Manu'a Is-
19 lands and his village chiefs did the same. On
20 February 20, 1929, the United States Congress
21 officially ratified the Treaty of Cession of
22 Tutuila and Aunu'u and the Treaty of Cession
23 of Manu'a. On March 4,· 1925, by Joint Resolu-
24 tion of the United States Congress, American ·
25 sovereignty was officially extended over Swains
•S 1237 IS
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55
1 Island and it was placed under the jurisdiction
2 of the government of American Samoa.
3 (D) Since ratification of the Treaties of
4 Cession, many American Samoans who are
1 .
5 United States nationals have joined the United
6 States Armed Forces and fought for the United
7 States during World War II, the Korean, Viet-
8 nam, and Persian Gulf wars, and most recently
9 in Iraq and Afghanistan.
10 (E) It is the responsibility of the Secretary
11 of Interior to advance the economic, social and
12 political development of the territories of the
13 United States.
14 (2) PURPOSE.-The purpose of this section is
15 to provide for a federally authorized vote in Amer-
16 ican Samoa on the question of citizenship and if a
17 majority of voters vote for citizenship, to describe
18 the steps that the President and Congress shall take
19 to enable American Samoans to be granted citizen-
20 ship.
21 (e) CITIZENSHIP VOTE.-The Secretary of Interior
22 shall direct the American Samoa Election Office to con-
23 duet a plebiseite on the issue of whether persons born in
24 American Samoa desire United States citizenship.
25 "As United States Citizens:
•S 1237 IS
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56
1 " (A) Individuals born in American Samoa ,
2 would be United States citizens by Federal law.
3 "(B) All persons living in American Samoa
4 who are United States nationals will become
5 United States citizens. Persons born in Amer-
6 ican Samoa will no longer be United States na-
7 tionals.
8 Do you want persons born in American Samoa to
9 become United States citizens¥ Yes No ¥".
10 SEC. 20. ELIGIBILITY FOR MARINE TURTLE CONSERVATION
11 ASSISTANCE.
12 The Marine Turtle Conservation Act of 2004 is
13 amended-
14 (1) in each of sections 2(b) and 3(2) (16 U.S.C.
15 6601(b), 6602(2)), by inserting "and territories of
16 the United States" after ~' foreign countries" each
17 place it appears;
18 (2) in section 3 (16 U.S.C. 6602), by adding at
19 the end the following:
20 44(7) TERRI'PORY OF THE UNITICD STATES.-
21 The term 'territory of the United States' means each
22 of the several States of the United States, Puerto
23 Rico, the Virgin Islands, Guam, American Samoa,
24 the Commonwealth of the Northern Mariana Is-
•S 1237 IS
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57
,1 lands, and any other territory or possession of the
2 United States."; and
3 (3) in section 4(b)(1)(A) (16 U.S.C.
4 6603(b)(1)(A)), by inserting "or territory of the
5 United States" after " foreign country".
0
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FL013B64 JOnNT STAFF AMENDMENT - S.L.C.
AMENDMENT NO. Calendar No.
Purpose: In the nature of a substitute.
IN THE SENATE OF THE UNITED STATES-113th Cong., 1st Sess.
S. 1237
To improve the administration of programs in the insular
areas, and for other purposes.
Referred to the Committee on and
ordered to be printed
Ordered to lie on the table and to be printed
AMENDMENT IN THE NATURE OF A SUBSTITUTE intended
to be proposed by
Viz:
1 Strike all after the enacting clause and insert the fol-
2 lowing:
3 SECTION 1. SHORT TITLE.
4 This Act may be cited as the "Omnibus Territories
5 Aet of 2013".
6 SEC. 2. TABLE OF CONTENTS.
7 The table of contents for this Act is as follows:
Sec. 1. Short title.
See. 2. Table of contents.
See. 3. Amendments to the Consolidated Natural Resources Act.
Sec. 4. Study of electric rates in the insular areas.
See. 5. Reports on estimates of revenues.
See. 6. Low-income home energy assistance program.
See. 7. Guam War Claims Review Commission.
See. 8. Improvements in HUD assisted programs.
See. 9. Benefit to cost ratio study for projects in American Samoa.
See. 10. Waiver of loeal matching requirements.
Sec. 11. Fishery endorsements.
.
FL013B64 JOINT STAFF AMENDMENT · S.L.C.
2
See. 12. Effeets of Minimum Wage differentials in American Samoa.
See. 13. Office of National Drug Control Policy.
See. 14. Drivers' licenses and personal identification eards.
1 SEC. 3. AMENDMENTS TO THE CONSOLIDATED NATURAL
2 RESOURCES ACT.
3 Section 6 of the Joint Resolution entitled "A Joint
4 Resolution to approve the 'Covenant To Establish a Com-
5 monwealth of the Northern Mariana Islands in Political
6 Union with the United States of America', and for other
7 purposes", approved March 24, 1976 (Public Law 94-
8 241; 90 Stat. 263, 122 Stat. 854), is amended-
9 (1) in subsection (a)-
10 (A) in paragraph (2), by striking "Deeem-
11 ber 31, 2014, except as provided in subsections
12 (b) and (d)" and inserting "December 31,
13 2019"; a,nd
14 (B) by striking paragraph (6): and insert-
15 ing the following:
16 "(6) CERTAIN EDUCATION FUNDING.-
17 "(A) IN GENERAL.-In addition to fees
18 charged pursuant to section 286(m) of the Im-
19 migration and Nationality Act (8 U.S.C. 1356
20 (m)) to recover the full costs of providing adju-
21 dication services, the Secretary of Homeland
22 Security shall charge an annual supplemental
23 fee of $150 per nonimmigrant worker to each
24 prospective employer who is issued a permit
..
FL013B64 JOUNT STAFF AMENDMENT S.L.C.
3
1 under subsection (d) of this section during the
2 transition program. Such supplemental fee shall
3 be paid into the Treasury of the Commonwealth
4 government for the purpose of funding ongoing
5 vocational educational curricula and program
6 development by Commonwealth educational en-
7 tities.
8 "(B) PLAN FOR THE EXPENDITURE OF
9 FUNDS.-At the beginning of each fiscal year,
10 and prior to the payment of the supplemental
11 fee into the Treasury of the Commonwealth
12 government in that fiscal year, the Common-
13 wealth government must provide to the See-
14 retary of Labor, a plan for the expenditure of
15 funds received under this paragraph, a projee-
16 tion of the effectiveness of these expenditures in
17 the placement of United States workers into
18 jobs, and a report on the changes in employ-
19 ment of United States workers attributable to
20 prior year expenditures.
21 "(C) REPORT.-The Secretary of Labor
22 shall report to the Congress every 2 years on
23 the effectiveness of meeting the goals set out by
24 the Commonwealth government in its annual
25 plan for the expenditure of funds."; and
..
FL013B64 JOIINT STAFF AMENDMENT S.L.C.
4
1 (2) in subsection (d)-
2 (A) in the third sentence of paragraph (2),
3 by striking "not to extend beyond December 31,
4 2014, unless extended pursuant to paragraph 5
5 of this subsection" and inserting "ending on
6 December 31, 2019";
7 (B) by striking paragraph (5); and
8 (C) by redesignating paragraph (6) as
9 paragraph (5).
10 SEC. 4. STUDY OF ELECTRIC RATES IN THE INSULAR
11 AREAS.
12 (a) DEFINITIONS.-In this section:
13 (1) COMPREHENSIVE ENERGY PLAN.-The term
14 "comprehensive energy plan" means a comprehen-
15 sive energy plan prepared and updated under sub-
16 sections (e) and (e) of section 604 of the Act entitled
17 "An Act to authorize appropriations for certain 'in-
18 sular areas of the United States, and for other pur-
19 poses", approved December 24, 1980 (48 U.S.C.
20 1492).
21 (2) ENERGY ACTION PLAN.-The term "energy
22 action plan" means the plan required by subsection
23 (d).
24 (3) FREELY ASSOCIATED STATES.-The term
25 "Freely Associated States" means the Federated
..
FLO13B64 JOIINT STAFF AMENDMENT S.L.C.
5
1 States of Micronesia, the Republic of the Marshall
2 Islands, and the Republic of Palau.
3 (4) INSULAR AREAS.-The term "insular areas"
4 means American Samoa, the Commonwea.lth of the
5 Northern Mariana Islands, Puerto Rico, Guam, and
6 the Virgin Islands.
7 (5) SECRETARY.-The term "Secretary" means
8 the Secretary of the Interior.
9 (6) TEAM.-The term "team" means the team
10 established by the Secretary under subsection (b).
11 (b) ESTABLISHMENT.-Not later than 180 days after
12 the date of enactment of this Act, the Secretary shall,
13 within the Empowering Insular Communities activity, es-
14 tablish a team of technical, policy, and financial experts-
15 (1) to develop an energy action plan addressing
16 the energy needs of each of the insular areas and
17 Freely Associated States; and
18 (2) to assist each of the insular areas and Free-
19 ly Associated States in implementing such plan.
20 (e) PARTICIPATION OF REGIONAL UTILITY ORGANI-
21 ZATIONS.-In establishing the team, the Secretary shall
22 consider including regional utility organizations.
23 (d) ENERGY ACTION PLAN.-In accordance with sub-
24 section (b), the energy action plan shall include-
..
FL013B64 JOINT STAFF AMENDMENT S.L.C.
6
1 (1) recommendations, based on the comprehen-
2 sive energy plan where applicable, to-
3 (A) reduce reliance and expenditures on
4 imported fuels;
5 (B) develop indigenous fuel energy sources;
6 and
7 (C) improve performance of energy infra-
8 structure and overall energy efficiency;
9 (2) a schedule for implementation of such ree-
10 ommendations and identification and prioritization
11 of specific projects;
12 (3) a financial and engineering plan for imple-
13 menting and sustaining projects; and
14 (4) benchmarks for measuring progress toward
15 implementation.
16 (e) REPORTS TO SECRETARY.-Not later than 1 year
17 after the date on which the Secretary establishes the team
18 and annually thereafter, the team shall submit to the See-
19 retary a report detailing progress made in fulfilling its
20 charge and in implementing the energy action plan.
21 (f) ANNUAL REPORTS To CONGRESS.-Not later
22 than 30 days after the date on which the Secretary re-
23 ceives a report submitted by the team under subsbetion
24 (e), the Secretary shall submit to the appropriate commit-
25 tees of Congress a summary of the report of the team.
FL013B64 JOIINT STAFF AMENDMENT S.L.C.
7
1 SEC. 5. REPORTS ON ESTIMATES OF REVENUES.
2 The Comptroller General of the United States shall
3 submit to the appropriate committees of Congress a report
4 that-
5 ( 1) evaluates whether the annual estimates or
6 forecasts of revenue and expenditure of American
7 Samoa, the Commonwealth of the Northern Mariana
8 Islands, Guam, and the Virgin Islands are reason-
9 able; and
10 (2) as the Comptroller General of the United
11 States determines to be necessary, makes ree-
12 ommendations for improving the process for devel-
13 oping estimates or forecasts.
14 SEC. 6. LOW.INCOME HOME ENERGY ASSISTANCE PRO-
15 GRAM.
16 With respect to fiscal years 2014 through 2017, the
17 percentage described in section 2605(b)(2)(B)(i) of the
18 Low-Income Home Energy Assistance Act of 1981 (42
19 U.S.C. 8624(b)(2)(B)(i)) shall be 300 percent when ap-
20 plied to households located in the Virgin Islands.
21 SEC. 7. GUAM WAR CLAIMS REVIEW COMMISSION.
22 (a) RECOGNITION OF THE SUFFERING AND LOYALTY
23 OF THE RESIDENTS OF GuAM.-
24 (1) RECOGNITION OF THE SUFFERING OF THE
25 RESIDENTS OF GUAM.-The United States reeog-
26 nizes that, as described by the Guam War Claims
..
FLO13B64 JOIINT STAFF AMENDMENT S.L.C.
8
1 Review Commission, the residents of Guam, on ae-
2 count of their United States nationality, suffered un-
3 speakable harm as a result of the occupation of
4 Guam by Imperial Japanese military forces during
5 World War II, by being subjected to death, rape, se-
6 vere personal injury, personal injury, forced labor,
7 forced march, or internment.
8 (2) RECOGNITION OF THE LOYALTY OF THE
' 9 RESIDENTS OF GUAM.-The United States forever
10 will be grateful to the residents of Guam for their
11 steadfast loyalty to the United States, as dem-
12 onstrated by the countless.acts of courage they per-
13 formed despite the threat of death or great bodily
14 harm they faced at the hands of the Imperial Japa-
15 nese military forces that occupied Guam during
16 World War II.
17 (b) G~AM WORLD WAR II CLAIMS FuND.-
18 (1) ESTABLISHMENT OF FUND.-The Secretary
19 of the Treasury shall establish in the Treasury of
20 the United States a special fund (in this Act re-
21 ferred to as the "Claims Fund") for the payment of
22 claims submitted by compensable Guam victims and
23 survivors of compensable Guam decedents in accord-
24 ance with subsections (e) and (d).
..
FLO13B64 ' JOINT STAFF AMENDMENT S.L.C.
9
1 (2) COMPOSITION OF FUND.-The Claims Fund
2 established under paragraph (1) shall be composed
3 of amounts deposited into the Claims Fund under
4 paragraph (3) and any other amounts made avail-
5 able for the payment of claims under this Aet.
6 (3) PAYMENT OF CERTAIN DUTIES, TAXES, AND
7 FEES COLLECTED FROM GUAM DEPOSITED INTO
8 FUND.-
9 (A) IN GENERAL.-Notwithstanding see-
10 tion 30 of the Organic Act of Guam (48 U.S.C.
11 1421h), the excess of-
12 (i) any amount of duties, taxes, and
13 fees collected under such subsection after
14 fiscal yea.r 2012, over
15 (ii) the amount of duties, taxes, and
16 fees collected under such subsection during
17 fiscal year 2012,
18 shall be deposited into the Claims Fund.
19 (B) ApPLICATION.-Subparagraph (A)
20 shall not apply after the date for which the See-
21 retary of the Treasury determines that all pay-
22 ments required to be made under subsection (e)
23 have been made.
24 (4) LIMITATION ON PAYMENTS MADE FROM
25 FUND.-
..
FLO13B64 JOIINT STAFF AMENDMENT S.L.C.
10
1 (A) IN GENERAL.-NO payment may be
2 made in a fiscal year under subsection (e) until
3 funds are deposited into the Claims Fund in
4 such fiscal year under paragraph (3).
5 (B) AMOUNTS.-For each fiscal year in
6 which funds are deposited into the Claims Fund
7 under paragraph (3), the total amount of pay-
8 ments made in a fiscal year under subsection
9 (e) may not exceed the amount of funds avail-
10 able in the Claims Fund for such fiscal year.
11 (5) DEDUCTIONS FROM FUND FOR ADMINIS-
12 TRATIVE EXPENSES.-The Seeretaiy of the Treasury
13 shall deduct from any amounts deposited into the
14 Claims Fund an amount equal to 5 per cent of such
15 amounts as reimbursement to the Federal Govern-
16 ment for expenses incurred by the Foreign Claims
17 Settlement Commission and by the Department of
18 the Treasury in the administration of this Act. The
19 amounts so deducted shall be covered into the -
20 Treasury as miseella.neous receipts.
21 (e) PAYMENTS FOR GUAM WORLD WAR II CLAIMS.-
22 (1) PAYMENTS FOR DEATH, PERSONAL INJURY,
23 FOR,CED LABOR, FORCED MARCH, AND INTERN-
24 MENT.-After the Secretary of the Treasury receives
25 the certification from the Chairman of the Foreign
..
FLO13B64 JOIINT STAFF AMENDMENT S.L.C.
11
1 Claims Settlement Commission as required under
2 subsection (d)(2)(H), the Secretary of the Treasury
3 shall make payments to compensable Guam victims
4 and survivors of a compensable Guam decedents as
5 follows:
6 (A) COMPENSABLE GUAM VICTIM.-Before
7 making any payments under subparagraph (B),
8 the Secretary shall make payments to eompen-
9 sable Guam victims as follows:
10 (i) In the ease of a victim who has
11 suffered an injury described in paragraph
12 (3)(B)(i), $15,000.
13 (ii) In the ease of a victim who is not
14 described in clause (i), but who has suf-
15 fered an injury described in paragraph
16 (3)(B)(ii), $12,000.
17 (iii) In the ease of a victim who is not
18 described in clause (i) or (ii), but who ha.s
19 suffered an injury described in paragraph
20 (3)(B)(iii), $10,000.
21 (B) SURVIVORS OF COMPENSABLE GUAM
22 DECEDENTS.-In the ease of a eompensable
23 Guam deeedent, the Secretary shall pay
24 $25,000 for distribution to survivors of the de-
25 eedent in accordance with paragraph (2). The
..
FLO13B64 JOINT STAFF AMENDMENT S.L.C.
12
1 Secretary shall make payments under this para-
2 graph only after all payments are made under
3 subparagraph (A).
4 (2) DISTRIBUTION OF SURVIVOR. PAYMENTS.-
5 A payment made under paragraph (1)(B) to the sur-
6 vivors of a compensable Guam decedent shall be dis-
7 tributed as follows:
8 (A) In the ease of a deeedent whose spouse
9 is living as of the date of the enactment of this
10 Act, but who had no living children as of such
11 date, the payment shall be made to such
12 spouse.
13 (B) In the ease of a decedent whose spouse
14 is living as of the date of the enactment of this
15 Act and who had one or more living children as
16 of such date, 50 percent of the payment shall
17 be made to the spouse and 50 percent sha,11 be
18 made to such children, to be divided among
19 such children to the greatest extent possible
20 into equal shares.
21 (C) In the ease of a deeedent whose spouse
22 is not living as of the date of the enactment of
23 this Act and who had one or more living chil-
24 dren as of such date, the payment shall be
25 made to such children, to be divided among
..
FL013B64 JOINT STAFF AMENDMENT S.L.C.
13
1 such children to the greatest extent possible
2 into equal shares.
3 (D) In the ease of a deeedent whose spouse
4 is not living as of the date of the enactment of
5 this Aet and who had no living children as of
6 such date, but who-
7 (i) had a parent who is living as of
8 such date, the payment shall be made to
9 the parent; or
10 (ii) had two parents who are living as
11 of such date, the payment shall be divided
12 equally between the parents.
13 (E) In the ease of a deeedent whose spouse
14 is not living as of the date of the enactment of
15 this Aet, who had no living children as of such
16 date, and who had no parents who are living as
17 of such date, no payment shall be made.
18 (3) DEFINITIONS.-For purposes of this Act:
19 (A) COMPENSABLE GUAM DECEDENT.-
20 The term "compensable Guam decedent" means
21 an individual determined under subsection (d)
22 to have been a resident of Guam who died as
23 a result of the attack and occupation of Guam
24 by Imperial Japanese military forces during
25 World War II, or incident to the liberation of
..
FL013B64 JOIiNT STAFF AMENDMENT S.L.C.
14
1 Guam by United States military forces, and
2 whose death would have been compensable
3 under the · Guam Meritorious Claims Aet of
4 1945 (Public Law 79-224) if a timely claim
5 had been filed undef the terms of such Aet.
6 (B) COMPENSABLE GUAM VICTIM.-The
7 term "compensable Guam victim" means an in-
8 dividual who is not deceased as of the date of
9 the enactment of this Act and who is deter-
10 mined under subsection (d) to have suffered, as
11 a result of the attack and occupation of Guam
12 by Imperial Japanese military forces during
13 World War II, or incident to the liberation of
14 Guam by United States military forces, any of
15 the following:
16 (i) Rape or severe personal injury
17 (such as loss of a limb, dismemberment, or
18 paralysis).
19 (ii) Forced labor or a personal injury
20 not under subparagraph (A) (such as dis-
21 figurement, searring, or burns).
/ 22 (iii) Forced mareh, internment, or
23 hiding to evade internment.
24 (C) DEFINITIONS OF SEVERE PERSONAL
25 INJURIES AND PERSONAL INJURIES.-Not later
..
FLO13B64 JOnNT STAFF AMENDMENT S.L.C.
15
1 than 180 days after the date of the enactment
2 of this Act, the Foreign · Claims Settlement
3 Commission shall promulgate regulations to
4 specify the injuries that constitute a severe per-
5 sonal injury or a personal injury for purposes of
6 subparagraphs (A) and (B), respectively, of
7 paragraph (2).
8 (d) ADJUDICATION.-
9 (1) AUTHORITY OF FOREIGN CLAIMS SETTLE-
10 MENT COMMISSION.-
11 (A) IN GENERAL.-The Foreign Claims
12 Settlement Commission shall adjudieate claims
13 and determine the eligibility of individuals for
14 payments under subsection (e).
15 (B) RuLES AND REGULATIONS.-Not later
16 than 180 days after the date of the enactment
17 of this Aet, the Chairman of the Foreign
18 Claims Settlement Commission shall publish in
19 the Federal Register such rules and regulations
20 as maor be necessary to enable the Commission
21 to carry out the functions of the Commission
22 under this Aet.
23 (2) CLAIMS SUBMITTED FOR, PAYMENTS.-
24 (A) SUBMITTAL OF CLAIM.-For purposes
25 of paragraph (1)(A) and subject to subpara-
FLO13B64 JOIINT STAFF AMENDMENT S.L.C.
16
1 graph (B), the Foreign Claims Settlement Com-
2 mission may not determine an individual is eli-
3 gible for a payment under subsection (e) unless
4 the individual submits to the Commission a
5 claim in such manner and form and containing
6 such. information as the Commission specifies.
7 (B) FILING PERIOD FOR CLAIMS AND NO-
8 TICE.-
9 (i) FILING PERIOD.-An individual fil-
10 ing a claim for a payment under subsection
11 (c) shall file such claim not later than one
12 year after the date on which the Foreign
13 Claims Settlement Commission publishes
14 the notice described in clause (ii).
15 (ii) NOTICE OF·FILING PERIOD.-Not
16 later than 180 days after the date of the
17 enactment of this Act, the Foreign Claims
18 Settlement Commission shall publish a no-
19 tice of the deadline for filing a claim de-
20 seribed in clause (i)-
21 (I) in the Federal Register; and
22 (II) in newspaper, radio, and tel-
23 evision media in Guam.
..
FL013B64 JOnVT STAFF AMENDMENT S.L.C.
17
1 (C) ADJUDICATORY DECISIONS.-The deei-
2 sion of the Foreign Claims Settlement Commis-
3 sion on each claim filed under this Act shall-
4 (i) be by majority vote;
5 (ii) be in writing;
6 (iii) state the reasons for the approval
7 or denial of the claim; and
8 (iv) if approved, state the amount of
9 the payment awarded and the distribution,
10 if any, to be made of the payment.
11 (D) DEDUCTIONS IN PAYMENT.-The For-
12 eign Claims Settlement Commission shall de-
13 duet, from a payment made to a compensable
14 Guam victim or survivors of a compensable
15 Guam decedent under this subsection, amounts
16 paid to such victim or survivors under the
17 Guam Meritorious Claims Act of 1945 (Public
18 Law 79-224) before the date of the enactment
19 of this Act.
20 (E) INTEREST.-No interest sha.11 be paid
21 on payments made by the Foreign Claims Set-
22 tlement Commission under subsection (e).
23 (F) LIMITED COMPENSATION FOR PROVI-
24 SION OF REPRESENTATIONAL SERVICES.-
.
..
FL013B64 JOINT STAFF AMENDMENT S.L.C.
18
1 (i) LIMIT ON COMPENSATION.-Any
2 agreement under which an individual who
3 provided representational services to an in-
4 dividual who filed a claim for a payment
5 under this Act that provides for compensa-
6 tion to the individual who provided such
7 services in an amount that is more than
8 one pereent of the total amount of such
9 payment shall be unlawful and void.
10 (ii) PENALTIEs.-Whoever demands
11 or receives any compensation in excess of
12 the amount allowed under subparagraph
13 (A) shall be fined not more tha.n $5,000 or
14 imprisoned not more than one year, or
15 both.
16 (G) ApPEALS AND FINALITY.-Objections
17 and appeals of decisions of the Foreign Claims
18 Settlement Commission shall be to the Commis-
19 sion, and upon rehearing, the decision in each
20 claim shall be final, and not subject to further
21 review by any court or agency.
22 (H) CERTIFICATIONS FOR PAYMENT.-
23 After a decision approving a claim becomes
24 final, the Chairman of the Foreign Claims Set-
25 tlement Commission shall certify such decision
..
FL013B64 JOINT STAFF AMENDMENT S.L.C. ,
19
1 to the Secretary of the Treasury for authoriza-
2 tion of a payment under subsection (e).
3 (I) TREATMENT OF AFFIDAVITS.-For
4 purposes of subsection (e) and subject to sub-
5 paragraph (B), the Foreign Claims Settlement
6 Commission shall treat a claim that is aeeom-
7 panied by an affidavit of an individual that at-
8 tests to all of the material facts required for es-
9 tablishing the eligibility of such individual for
10 payment under such subsection as establishing
11 a prima facie ease of the eligibility of the indi-
12 vidual for such payment without the need for
13 further documentation, except as the Commis-
14 sion may otherwise require. Such material facts
15 shall include, with respect to a claim for a pay-
16 ment made under subsection (e)(1), a detailed
17 description of the injury or other circumstance
18 supporting the ela.im involved, including the
19 level of payment sought.
20 (J) RELEASE OF RELATED CLAIMS.-Ae-
21 eeptanee of a payment under subsection (e) by
22 an individual for a claim related to a compen-
23 sable Guam deeedent or a compensable Guam
24 victim shall be in full satisfaction of all claims
25 related to such decedent or victim, respectively,
FLO13B64 JOINT STAFF AMENDMENT S.L.C.
20
1 arising under the Guam Meritorious Claims Aet
2 of 1945 (Public Law 792-224), the imple-
3 menting regulations issued by the United States
4 Navy pursuant to such Act (Public Law 79-
5 224), or this Aet.
6 SEC. 8. IMPROVEMENTS IN HUD ASSISTED PROGRAMS.
7 Section 214(a)(7) of the Housing and Community
8 Development Aet of 1980 (42 U.S.C. 1436a(a)(7)) is
9 amended by striking "such alien" and all that follows
10 through the period at the end and inserting "citizen or
11 national of the United States shall be entitled to a pret'-
12 erenee or priority in receiving assistance before any such
13 alien who is otherwise eligible for such assistance.".
14 SEC. 9. BENEFIT TO COST RATIO STUDY FOR PROJECTS IN
15 AMERICAN SAMOA.
16 (a) STUDY.-The Comptroller General of the United
17 States shall conduct a study regarding the use of benefit-
18 to-cost ratio formulas by Federal departments and agen-
19 cies for purposes of evaluating projects in American
20 Samoa.
21 (b) CONTENTS.-In conducting the study, the Comp-
22 troller General shall-
23 ( 1) assess whether the benefit-t6-cost ratio for-
24 mulas described in subsection (a) take into consider-
25 ation-
FL013B64 JOUFF STAFF AMENDMENT S .L .C .
21
1 (A) the remote locations in, and the cost of
2 transportation to and from, American Samoa;
3 and
4 (B) other significant factors that are not
5 comparable to locations within the 48 contig-
6 uous States; and
7 (2) assess, in particular, the use of benefit-to-
8 cost ratio formulas by-
9 (A) the Secretary of Transportation with
10 respect to airport traffic control tower pro-
11 grams; and
12 (B) the Secretary of the Army, a.eting
13 through the Corps of Engineers, with respect to
14 a harbor project or other water resources devel-
15 opment project.
16 (3) REPORT TO CONGRESS.-Not later than 1
17 year after the date of enactment of this Act, the
18 Comptroller General shall submit to Congress a re-
19 port on the results of the study.
20 SEC. 10. WAIVER OF LOCAL MATCHING REQUIREMENTS.
21 (a) WAIVER OF CERTAIN MATCHING REQUIRE-
22 MENTS.-Section 501 of the Aet entitled "An Aet to au-
23 thorize certain appropriations for the territories of the
24 United States, to amend certain Acts relating thereto, and
FL013B64 JOIINT STAFF AMENDMENT S.L.C.
22
1 for other purposes", approved October 15, 1977 (48
2 U.S.C. 14698; 91 Stat. 1164) is amended-
3 (1) in the last sentence of subsection (d), by
4 striking "by law"; and
5 (2) by adding at the end the following new sub-
6 section:
7 "(e) Notwithstanding any other provision of law, in
8 the ease of American Samoa, Guam, the Virgin Islands,
9 and the Northern Mariana Islands, each department or
10 agency of the United States shall waive any requirement
11 for local matching funds (including in-kind contributions)
12 that the insular area, would otherwise be required to pro-
13 vide for any non-competitive grant as follows:
14 "(1) For a grant requiring matching funds (in-
15 eluding in-kind contributions) of $500,000 or less,
16 the entire matching requirement shall be waived.
17 "(2) For a grant requiring matching funds (in-
18 eluding in-kind contributions) of more than
19 $500,000, $500,000 of the matching requirement
20 shall be waived.".
21 (b) CONFORMING AMENDMENT.-Section 601 of the
22 Aet entitled "An Act to a.uthorize appropriations for eer-
23 tain insula.r areas of the United States, and for other pur-
24 poses", approved March 12, 1980 (48 U.S.C. 1469a note;
25 94 Stat. 90), is amended by striking ", and adding the
FLO13B64 JOINT STAFF AMENDMENT S.L.C.
23
1 following sentence" and all that follows through "Is-
2 lands..
3 SEC. 11. FISHERY ENDORSEMENTS.
4 Section 12113 of title 46, United States Code, is
5 amended by adding at the end the following:
6 " (j) CERTAIN ExEMPTION.-Paragraph (3) of sub-
7 section (a) shall not apply to any vessel-
8 "(1) that offloads its catch in part or full in
9 American Samoa; and
10 " (2) that was rebuilt outside of the United
11 States before January 1,2011.1
12 SEC. 12. EFFECTS OF MINIMUM WAGE DIFFERENTIALS IN
13 AMERICAN SAMOA.
14 Section 8104 of the Fair Minimum Wage Aet of 2007
15 (29 U.S.C. 206 note) is amended by adding at the end
16 the following:
17 "(e) EFFECTS OF MINIMUM WAGE DIFFERENTIALS
18 IN AMERICAN SAMOA.-The reports required under this
19 section shall include an analysis of the economic effects
20 on employees and employers of the differentials in min-
21 imum wage rates among industries and classifications in
22 American Samoa, under section 697 of title 29, Code of
23 Federal Regulations, including the potential effects of
24 eliminating such differentials prior to the time when such
25 rates are scheduled to be equal to the minimum wage set
FLO13B64 JOINT STAFF AMENDMENT S.L.C.
24
1 forth in section 6(a)(l) of the Fair Labor Standards Act ,
2 (29 U.S.C. 206(a)(1)).".
3 SEC. 13. OFFICE OF NATIONAL DRUG CONTROL POLICY.
4 (a) CARIBBEAN BORDER COUNTERNARCOTICS
5 STRATEGY.-The Office of National Drug Control Policy
6 shall develop a biennial Caribbean Border Counter-
7 narcotics Strategy, that is made available to the public,
8 with emphasis on the borders of Puerto Rico and the Vii'-
9 gin Islands of the United States, on terms substantially
10 equivalent to the existing Southwest Border Counter-
11 narcotics Strategy and the Northern Border Counter-
12 narcotics Strategy.
13 (b) AMENDMENT.-Section 704(b)(13)(B) of the Of-
14 fice of National Drug Control Policy Reauthorization Act
15 of 1998 (21 U.S.C. 1703(b)(13)(B)) is amended by insert-
16 ing "the borders of Puerto Rico and the Virgin Islands
17 of the United States and" after "in particular".
18 SEC. 14. DRIVERS' LICENSES AND PERSONAL IDENTIFICA-
19 TION CARDS.
20 (a) DEFINITION OF STATE.-Section 201(5) of the
21 REAL ID Act of 2005 (49 U.S.C. 30301 note; Public Law
22 109-13) is amended by striking "the Trust Territory of
23 the Pacific Islands,".
FL013B64 JOINT STAFF AMENDMENT S.L.C.
25
1 (b) EVIDENCE OF LAWFUL STATUS.-Section
2 202(e)(2)(B) of the REAL ID Aet of 2005 (49 U.S.C.
3 30301 note; Public Law 109-13) is a,mended-
4 (1) in clause (viii), by striking "or" after the
5 semieolon at the end;
6 (2) in clause (ix), by striking the period at the
7 end and inserting "; or"; and
8 (3) by adding at the end the following:
9 "(x) is a citizen of the Republic of the ~
10 Marshall Islands, the Federated States of
11 Micronesia, or the Republic of Palau who
12' has been admitted to the United Statds as
13 a nonimmigrant pursuant to a Compact of
14 Free Association between the United
15 States and the Republic or Federated
16 · States.".
D690 CONGRESSIONAL RECORD- DAILY DIEST July 11, 2013
Hochberg, of New York, to be President of the Ex- the Majority Leader in today's Record on page
port-Import Bank of the United States. 55673.)
Pages 55652-53
A motion was entered to close further debate on Committee Meetings
the nomination, and, in accordance with the provi-
sions of Rule XXII of the Standing Rules of the (Committees not listed did not meet)
Senate, a vote on cloture will occur upon disposition BUSINESS MEETING
of ·the nomination of Mark Gaston Pearce, of New
York, to be a Member of the National Labor Rela- Committee on Appropriations: Committee ordered favor-
tions Board. Pages 55653-54 ably reported the following business items:
An original bill (S. 1284) making appropriations
Perez' Nomination-Cloture: Senate began consid- for Labor, Health and Human Services, Education,
eration of the nomination of Thomas Ed#ard Perez, and Related Agencies for the fiscal year ending Sep-
of Maryland, to be Secretary of Labor. Page 55653 tember 30, 2014; and
A. motion was entered to close further debate on An original bill (S. 1283) rrfaking appropriations
the nomination, and, in accordance with the provi- for the Legislative Branch for the fiscal yek ending
sions of Rule XXII of the Standing Rules of the September 30, 2014.
Senate, a vote on cloture will occur upon disposition DEPARTMENT OF DEFENSE OPERATIONS
of the nomination of Fred P. Hochberg, of New
York, to be President of the Export-Import Bank of
- Committee on Armed Services: Committee received
a
the United States. Page S5653 conducted pursuant to the 2001 Authorization for
closed briefing on Department of Defense operations
McCarthy Nomination-Cloture: Senate began Use of Military Force and the presidential policy
consideration of the nomination of Regina McCar- guidance on counterterrorism from Michael G. Vick-
thy, of Massachusetts, to be Administrator of the ers, Under Secretary for Intelligence, Michael A.
Environmental Protection Agency. Page S5653 Sheehan, Assistant Secretary for Special Operations
A motion wa5 entered to close further debate on and Low-Intensity Conflict, Vice Admiral Kurt W.
the nomination, and, in accordance with the provi- Tidd, USN, Director for Operations, and Com-
sions of Rule XXII of the Standing Rules of the mander William Gallagher, both of the Joint Staff,
Senate, a vote on cloture will occur upon disposition J3,-and Brigadier General Richard Gross, Legal
of the nomination of Thomas Edward Perez, of Counsel to the Chairman, Joint Chiefs of Staff, all
Maryland, to be Secretary of Labor. Page S5653 of the Department of Defense.
Nomination Received: Senate received the fol- WALL STREET REFORMS
lowing nomination:
Committee on Banking, Housing, and Urban A#airs:
William Ward Nooter, of the District of Colum- Committee concluded a hearing to examine miti-
bia, to be an Associate Judge of the Superior Court gating systemic risk through Wall Street reforms, .
of the District of Columbia for the term of fifteen after receiving testimony from Mary J. Miller, Under
years. Page S5673 Secretary, and Thomas J. Curry, Comptroller of the
Messages from the House: Pages 55666,55673 Currency, both of the Deliartment of the freasury;
Daniel K. Tarullo, Member, Board of Governors of
Measures Read the First Time: Page 55666 the Federal Reserve System; and Martin J.
Executive Communications: Pages 55666-67 Gruenberg, Chairman, Federal Deposit Insurance
Executive Reports of Committees: Page S5667 Corporation.
Additional Cosponsors: Page S5668 ~J.S. TERRITORIES BILLS
Statements on Introduced Bills/Resolutions: ""Committee on Energy and Natural Resources: Committee
- Pages S5668-72 concluded a hearing to examine S. 1237, to improve
the administration of programs in the insular areas,
Additional Statements: Pages S5665-66 and S. 1268, to approve an agreement between the
Notices of Hearings/Meetings: Page 55672 United States and the Republic of Palau, after re-
Authorities for Committees to Meet: Page 55672 ceiving testimony from Representatives
Faleomavaega, Christensen, Bordallo, Sablan, and
Privileges of the Floor: Page 55672 Pierluisi; Eileen Sobeck, Acting Assistant Secretary
Adjournment: Senate convened at 10 a.m. and ad- of the Interior for Insular Areas; Vikram J.· Singh,
journed at 6:50 p.m., until 2 p.m. on Monday, July Deputy Assistant Secretary of Defensd for South and
15, 2013. (For Senate's progfam, see the remarks of Southeast Asia, Office of the Secretary of_Defense for
.8 0
. "J Tburkday; Jul¥11, 2013
uaity Digest
Senate
Chamber Action
Ohio, to be Director, reau of Consumer Financial
Protection. Pages S5651-52
Routine Proceedings, pages 53623-55673~ A motion was tered to close further debate on
Measures Introduced: Sixteen bills and Ane resolu- the nomination and, in accordance with the»-provi-
tion were introduced, as follows: S. 1278-~293, and sions of Rul XXII of the Standing Rules of the
SJ: Res. 20. 1~age S5667 Senate, a v e on cloture will occur on Tuesday, July
Measurds Reported: Page S5673
16,2013-
S. 1283, making appropriations for the Ldgislative Griffi Nomination-Cloture: Senate began con-
Branch for the fiscal year ending September 30, side tion of the nomination of Richard F. Griffin, ,
2014. (S. Rept. No. 113-70) Jr of the District of Columbia, to be a Member of
S: 1284, making appropriations for the Bepart- e National Labor Relations Board. Page S5652
ments of Labor, Health and' Human Servicel and
A niotion was entered to Close further debate on
Education, and related ~ agencies for the fiscal~ year the nomination, and, in accordance with the provi-
ending September 30, 2014. (S. Rept. No. 113-7
Page 55 67 Senate, a vote on cloture will occur upori disposition
sions of Rule.XXII of the Standing. Rules of the
Measures Passed: of the nomination of Richard Cordray, of Ohio, {o
»
Kay Bailey Hutchison Spousal IRA: Co
mittee be Director, Bureau of Consumer Financial Protec-
on Finance was discharged from further con deration tion. Page S5673
df H.R. 2289, to rename section 219(c) o the Interf Block Nomination-Cloture: Senate began consid-
nal Revenue Code of 1986 as the ay Bailey~ eration of the -nomination of Sharon Block, of the
Hutchison Spousal IRA, and the 1 was then 1 District of. Columbia,· to be a Member of the Na-
passed.
Page 55672 ~ tional Labor Relations Board. Page S5652
Authorizing tbe Use of Emanct atibn Hall: Sen- \
A motion was entered to close further debate on
ate agreed to H. Con. Res. 43, th6rizing the use pe nomination, and, in accordance .with the 'provi-
for a ceremony honoring the l)(e and legacy of Nel- S/nate, a vote on cloture will occur upon disposition
of Emancipation Hall in the C itol Visitor Center slons of Rule XXII of Ehe Standing Rules of the
son Mandela on the occasio~f the 95th anniversary of'fhe' nomination of Richard F. Griffin, Jr., of the
of his birth. Page S5673 Distritt of Columbia, to be a Member of the Na-
National Day of tbe *merican Cowboy: Corn. tion11 Labor Relations Board . Page S5673
mittee on the Judiciary *as discharged frorn further Pear~ Nomination-Cloture: Senate began con-
consideration of S. Res/ 191, designating July 27,„ sideration of the nomination of.Mark Gaston Pearce,
2013, as "National D* of the American Cowboy ' of New York, to be a Member of the National Labor
and ·the resolution waqthen agreed to. Page S5673
-
1
. Relations Board . Page S5652
Measures Consider~d: R motiobtwas entered to close further ddbate on
Keep Student Loans Affordable Act: Senate began the nominatidn, and, in accordance with the provi- _
consideration of the motion to proceed to consider- hions of Rule ' XXII of the Standing Rules of the
ation of S. 1238, to amend the -Higher Education Senate, a vote on cloture will occur upon disposition
- Act df 1965 to extend the current reduced .interest of the nomination of Sharon Block, of the District
rate for undergraduate Federal Direct Stafford Loans of Columbia, · to be a Member. of the National Labor
for 1 year, to modify reqzlired distribution rules for Relations Board. Page S5653
pension plans. Pages 55625-28 -Hochberg Nomination-Clotare: Senate began
. Cordray Nomination-Cloture: Senate began con- consideration of the· nomination of Fred P.
sideration of the nomination of Richard Cordray, of
D689
July 11, 2013 ~NGRESSIONAL RECORD-'DAIL~DIGEST D691
Policy; and Edgard Kagan, Deputy Assistant Sec- Naland, of Virginia, to be Assistant Secretary for
retary of State, Bureau of East Asian and Pacific Af- European and Eurasian Affairs, Douglas Edward
fairs. Lute, of Indiana, to be United States Permanent
TRANS*TION IN AFGHANISTAN Representative on the Council of the North Atlantic
Treaty Organization, with the rank and status of
Committee on Foreign · Relations: Committee concluded Ambassador, and Daniel Brooks Baer, of Colorado, t6
a hearing to examine assessing the transition in Af- be U.S. Representative to the Organization for Secu-
ghanistan, after receiving testimony from James F.
- Dobbins, Special Representative for Afghanistan and rity and Cooperation in Europe, with the rank of ~
Pakistan, Department of State; Peter R. Lavoy, Act- Ambassador, all of the Department of State, after the
ing Assistant Secretary of Defense for Asian and Pa- nominees testified and answered questions in their -
cific Security Affairs; Stephen Hadley, United States own behalf.
Institute of Peace, and Sarah Chayes, Carnegie En-
dowment for International Peace, both of Wash- BUSINESS MEETING -
ington, D.C.; and Nader Nadery, Fair and Free Elec- Committee - on the Judiciary: Committee ordered favor-
tions Foundation of Afghanistan, Kabul, Afghani- ably reported the nominations of Byron Todd Jones,
stan. of Minnesota, to be Director, Bureau of Alcohol, To-
bacco, Firearms, and Explosives, and Stuart F.
NOMINATIONS
Delery, of the District of Columbia, to be an Assist-
Committee on Foreign Relations: Committee concluded ant Attorney General, both of the Department of
~
- a hearing to examine the nominations of Victoria Juspice.
House of Representatives
Cbamber Action Federal Agriculture Reform and Risk Manige-
ment Act of 2013: The House passed H.R. 2642,
Public Bills and Resolutions Introduced: 34 pub- to provide for the reform and continuation of agri-
}ic bills, H.R. 2653-2686; and 3 resolutions, H. cultural and other programs of' the Department of
Res. 297-299 were introduced. Pages H4482-83 Agriculture through fiscal year 2018, by a yea-and-
Additional Cosponsors: ' Pages. H4485-86 nay vote of 216 yeas to 208 nays, Roll No. 353.
Pages H4376-89, H4390-H4475
Report Filed:. A report was filed today as follows: Rejected the Esty motion to recommit the bill to
H.R. 5, to support State and local accountablility the Committee on Agriculture with instructions to
for public education, protect State and local author- report the same back 10 the House forthwith with
ity, inform parents of the performante of their chil- an amendment, by a recorded vote of 198 ayes to
drens schdols, and for other purposes, with an 226 noes, Roll No. 352. Pages H4470-74
amendment (H. Rept. 113-150, Pt. 1). Page H4482 During the course of debate on H.R. 2642, Rep-
Speaker: Read a letter from the Speaker wherein he resentative Watt raised a point of order against the
appointed Representative Meadows to act as Speaker ruling of the Chair regarding what constitutes em-
pro tempore for today. Page H4373 bellishment Zf a unanimous consent request, and the
point of order was overruled. Represent:ative Watt
Chaplain: The prayer was offered by the guest chap- appealed the ruling of the chair, and Representative
lain, Reverend Dr. Paul Binion II, Westside Church Lucas moved to table the motion to appeal the rul-
of God, Fresno, California. Page H4373 ing of the chair. The motion to table was agreed to
Journal: The House agreed to the Speaker's approval by a yea-and-nay vote of 226 yeas to 189 nays, Roll
of the Journal by voice vote. Pages H4373, H4475 No. 350. Pages H4462-63
During the course of further debate on H.R.
Motion to Adjourn: Rejected the Sewell (AL) mo-
2642, Representative Thompson (MS) raised a point .
tion to adjourn by a yea-and-nay vote of 125 yeas of order against the ruling of the Chair regarding
to 260 nays, Roll No. 346. Pages H4375-76 . what constitutes embellishment of a unanimous con-
Motion to Adjourn: Rejected the Fudge motion to sent request, and th-e point of order was overruled.
adjourn by a yea-and-nay vote of 138 yeas to 265 Representative Thompson (MS) appealed the ruling
nays, Roll No. 348. Page H4389 of the chair, and Representative Lucas moved to
*S692 CONGEMSION*L- RECORD
DAIEY 1 ]6161EST July 11, 2013
-
table the motion to appeal the ruling of the chair. STATE DEPARTMENT 2013 TRAFFICKING
The motion to table was agreed to by a recorded IN PERSONS REPORT
vote of 221 ayes to 181 noes , Roll No. 351 . Committee on Foreign Affairs: Subcommittee on Africa,
Page H4467 Global Health, Global Human Rights, and Inter-
H. Res. 295, the rule providing for consideration national Organizations held a hearing. entitled "The .
of the bill, was agreedto by a recorded vote of 223 State Department 2013 Trafficking in Persons Re-
ayes to 195 noes, Roll No. 349, after the previous port". Testimony was heard from Luis CdeBaca, Am-
: question was ordered without objection. bassaclor-at-Large, Office to Monitor and Combat
- Pages H4376-94 Tr~fficking in Persons, Department of State.
During the course of debate on H. Res. 295, the . -
Chair stated that k was not in order to embellish a ASSESSING ATTACKS ON THE HOMELAND
unanimous consent request with additional remarks Committee on Homeland Security: Full Committ e con-
in the form of debate. Representative Hoyer raised inued a hearing entitled "Assessing Atta s on the
a point of order against the ruling of the Chair re- omeland: From Fort Hood to Bosto ' . This por-
garding what constitutes embellishment of a unani- t on of the hearing was closed.
mous consent request, and the point of order was
overruled. Representative Hoyer appealed the ruling L GISLATIVE MEASURE
of the chair, and Representative Sessions moved to C
mittee on the Judiciary: bcommittee on Regu-
table the motion 10 appeal the ruling of the chair. lat ry Reform, Commerc and Antitrust Law. held -
The motion to table was agreed to by a recorded a 1~aring on the "Resp sioy and Professionally In-
vote of 226 ayes to 196 noes, Roll No. 347.
vigqrating Develop nt (RAPID) Act of 2013".
Pages 1-14383-84 Test~nony was hea from public witnesses.
,
Meeting Hour: Agreed that when the House ad-
' journs today, it adjourn to meet at 10 a.m. on Mon- AMERICA'S LIUM SUPPLY
day , July 15th . Pages H4476, H4481
- Commt*ee on atural Resources: Subcommittee on En-
Senate Message: Message received from the Senate ergy add ineral Resources held a hearing entitled
today appears on pages H4389-90. "A~eri s Helium Supply: Options for Producing
More lium from Federal Lands". Testimony wis
Quorum Calls-Votes: Four yea-and-nay votes and heard fro Tim Spisak, Deputy Assistant Director,
four recorded votes developed during the proceedings Mia*als nd Realty Management, Department of
of today and ,appear on pages H4375-76, Ibt Interio Bureau of Land Management; and pub-.
H4383-84, H4389, H4394, H4463, *4467, k witnesse
H4474, H4474-75. There were no quorum calls.
Adjournment: The House met at 9 a.m. and ad- WILDFIRE AND FOREST MANAGEMENT
journed at 4 : 52 p .m . Committee on Natural Resources : Subcommittee on Pub-
lic Lands and \Environmental Regulations held a
hearing entitled '<Wildfire and Forest Managennent .
Committee Meetings Testimony was heard from Representatives Lamborn;
Tipton; Gosar; and Kirkpatrick; Jim Hubbard, Dep-
REGULATION OF NEW CHEMICALS,·
uty Chief, State and Brivate F6restry, Forest Service,
PROTECTION OF CONFIDENTIAI, BUSINESS . Department of Agriculture; James Douglas, Acting
INFORMATION, AND INNOVATION Director, Office of Wildland Fire, Senior Adviser,
Committee on Energy and Commerce: Sub~mmittee on
Public Safety, Resource Protection and Emergency
Entironment and the Economy held Af hearing enti- Services, Department of the Interior; Joe Duda, Dep-
tied "Regulation of New Chemicalt Protection of uty State Forester, Colorado State Forest Service,
Confidential Business Information~knd Innovation". Folorado State University; and public witnesses.
Testimony was heard from public~witnesses.
DEPARTMENT OF ENERGY NATIONAL
. IMPROVING FCC PROCESS/ LABORATORIES AND SCIENCE ACTIVITIES
Committee on Energy and Comm«ce: Subcommittee on Commitiee
on
Science,
Space,
and
Technology:
Sub-
Communications and Technology held a hearing en- committee on Energy held a hearing entitled "Over-
sight and Management of Department of Energy Na-
1 titled "Improving FCC Process". Testimony was tional Laboratories and ~ Sciense Activities". Testi-
heard from public witnesses.
- mony was heard from public witnesses.
..
Opening Statement
Senate Committee on Energy and Natural Resources
Hearing: Omnibus Territories Act and Palau Agreement
July 11,2013
SD-366
• Today the Committee meets to consider S.1237, the Omnibus Territories Act and S. 1268,
a bill to approve the September 10,2010 Agreement between the United States and the
Republic of Palau.
• We have with us the delegates from each ofthe territories, the Resident Commissioner
from Puerto Rico, and Eileen Sobeck from the Department ofthe Interior for our first
panel on S. 1237.
• Ms. Sobeck will also appear on the second panel, along with Vikram Singh from the
Department of Defense and Edgard Kagan from the Department of State, to discuss the
Palau agreement.
• Good morning and welcome to you all.
• I would like to start by saying a few words about S.1237, the Omnibus Territories Act.
• This committee has jurisdiction over matters relating to the territories ofthe United
States. However, because the territories are not represented in the Senate, few legislative
proposals dealing with the territories are introduced here .
• That is why Senator Murkowski and I asked Congressman Sablan to round up legislative
proposals from the territories, and send them to us. Senator Murkowski and I have
introduced those proposals as S.1237, the Omnibus Territories Act.
• Senator Murkowski and I introduced the bill "by request." As many of my colleagues
know, introducing a bill "by request" is a courtesy Senators usually provide to the
Executive Branch. However it can be extended to others.
• It means that Senator Murkowski and I are not endorsing the bill, or offering support for
all of its provisions. We are merely offering it for consideration at the request of others -
in this case the elected representatives ofthe various territories.
• The Omnibus Territories Act contains a wide variety of proposals. Some have been
considered by this Committee before, and others are new. Some are controversial and
others have broad support.
• 1 want to take a minute to talk about just two ofthe proposals.
..
• Section 12 of the bill, Guam War Claims, has come before the Senate a number of times
in different forms. And it has always been very controversial because of the high cost of
the proposal.
• Few deny the heroism and steadfast loyalty ofthe citizens of Guam during WWII. Many
of them were subjected to forced labor, tortured, raped and killed by Japanese military
forces, often simply because they were Americans.
• However, the high cost ofthe proposed payment of reparations to victims and survivors
has made it difficult to get the proposal passed.
• But Congresswoman Bordallo has tackled this issue by providing a way to pay for the
proposal. The Guam War Claims would be paid using Guam tax dollars that are
normally sent to Guam's treasury.
• I am hopeful that this creative offset will satisfy those who were worried about the cost of
the proposal.
• One ofthe new proposals in the bill is Section 9, the temporary heating and energy
assistance to the Virgin Islands, designed to help those hit hardest by the sudden spike in
electricity prices on the islands.
• When the oil refinery on St. Croix closed last year, the islands faced a double whammy of
massive job losses and a huge increase in the cost of electricity. The economy ofthe
islands has been devastated.
• I know that Congresswoman Christensen, the Governor, the Departments of Interior and
Energy and local leaders have been working hard to overcome this economic disaster.
They are working to install a variety of renewable and traditional energy sources and
increase efficiency. They are truly pursuing an "all-of-the above" approach.
• But it will take several years for these measures to provide relief. In the meantime,
Congresswoman Christensen is proposing that the Virgin Islands receive a greater share
of Low-Income Home Energy Assistance Act dollars. She is also proposing that
eligibility be expanded to folks with incomes up to 300% ofthe poverty level.
• These would be temporary measures, meant only to help the Virgin Islanders through this
disaster. I certainly look forward to hearing from the Congresswoman about her
proposal.
• Before we get started I also wanted to say a few words about S. 1268, to approve the
September 10, 2010 Agreement between the United States and the Republic ofPalau.
• This agreement has an enormous strategic value to the United States. I look forward to
hearing from both the Pentagon and the Department of State on that this morning.
..
• It is difficult to place a dollar value on an unsinkable aircraft carrier in the Pacific,
unchallenged authority over a huge swath of ocean, and a steadfast international ally. But
we actually know the cost. It is $165 million -- approximately the cost of one F-35
fighter jet.
• It is hard to overstate the value and strategic necessity of approving this agreement.
• I hope that the Administration will continue to work with this Committee to find an
acceptable offset for the Palau agreement so that America can implement this important
national security agreement.
..
Senator Lisa Murkowski
Opening Statement
Omnibus Territories/Palau Hearing
July 11, 2013
Mr. Chairman, thank you for holding this hearing on two pieces of legislation that impact the
territories and Freely Associated States. This is an area ofthis Committee's jurisdiction that may
not generate as many headlines as other issues, but nonetheless is important to our nation's
economic and physical security.
The first bill, the Omnibus Territories Act of2013, with 20 sections is really a wide variety of
issues ranging from the minimum wage to HUD programs to fishery endorsements and
everything in between that may impact the territories individually or collectively.
While this bill was introduced by request, we made some changes to this bill compared to what
was introduced in the House. I anticipate that further changes will need to be made should the
Committee move forward on the bill and I look forward to working with each ofthe delegates on
these matters.
With respect to the second piece of legislation, approving an agreement between the United
States and Palau, I thank the Administration for transmitting this language to Congress so that it
could be included in this hearing.
I will not go into all ofthe details ofthe Compact of Free Association between our two nations,
but as a result of the close strategic and economic ties between our countries and our peoples,
hundreds ofPalauan citizens serve in all branches ofthe United States' Armed Forces. We
greatly appreciate their willingness to serve in our Nation's military, in some cases giving their
lives to defend our freedom.
Palau is a steadfast ally ofthe United States in international forums, whose support we should be
mindful of and grateful for. Palau, along with Israel, votes with the U.S. in the United Nations
more times than any other member. It is also important to recognize Palau's leadership in
working with the United States to resettle six ethnic Uighurs who were detained at the
Guantanamo Detention Facility. Palau was the first to offer its country as a future home for
these detainees.
The key question, however, and a question that has gone unresolved since the Agreement was
signed in 2010, is how to pay for it. I am not aware of any policy objections to the Agreement,
but also acknowledge that, in my view, we have not seen an acceptable offset to the Agreement's
cost.
I am hopeful that the Administration's witnesses today might offer some politically viable ways
to move this Agreement forward.
###
DONNA M. CHRISTENSEN ~ PLEASE RESPONDTO:
DELEGATE, VIRGIN |SLANDS ,
WASHINGTON OFFICE
1510 LONGWORTH HOUSE OFFICE BUILDING
COMMITTEE ON O WATON.DC 20515
ENERGY AND COMMERCE (202) 225-1790
SUBCOMMITTEE ON HEALTH
Congress of ttle aniteb *tateg FAX (202) 225-5517
SUBCOMMITTEE ON
ENERGY AND POWER 100110£ of ilepreselitati~ed DISTRICT OFFICES
SUBCOMMIlTEE ON
SUNSHINE MALL SPACE #204-205
COMMERCE. MANUFACTURING. AND TRADE
- Utagbitigton, ED€ 20515-5500 0 #1 EsrATE CANE
FREOERIKSTED, VI 00840
CONGRESSIONAL BLACK CAUCUS P.O. Box 5980
C'STED, ST. CROIX, VI 00823
CONGRESSIONAL CAUCUS FOR (340) 778-5900
WOMEN'S |SSUES FAx (340) 778-5111
ASSISTANT MINORITY WHIP, Opening Statement of
DEMOCRATIC CAUCUS The Hon. Donna M. Christensen 8000 NISKY CENTER, SUITE No. 207
~ ST. THOMAS, VIRGIN ISLANDS 00802
on S. 1237 (340)774-4408
FAX (340) 774-8033
Senate Energy and Natural Resources Committee
July 11,2013 0 ST·JOHNCONTA
(202) 664-3663
I want to begin by thanking you Chairman Wyden and Ranking Member Murkowski for the
friendship you have shown to the residents of the Insular Areas and their representatives in the
House with the introduction of S. 274 and the scheduling of this hearing today. My Colleagues
and I deeply appreciate the effort and time you and your staff put into making both, the Omnibus
Territories bill and this hearing a reality.
Mr. Chairman, I am pleased that S. 1237 includes five provisions that originated in bills I
introduced in this and previous Congresses. The first and third provisions of the bill, Sections 6
and 9, where included in legislation 1 sponsored last December to address a crisis in the cost of
electricity facing my constituents. The current average cost for residential customers in the
Virgin Islands is 50.8 cents per kilo watt hour and 54.8 cents for commercial customers. These
high costs threaten Virgin Islands families at all income levels but especially low income. It also
adversely impacting businesses causing closures and downsizing.
Section 6 is intended to look for long term sustainable solutions to the problem of high energy
coast from fossil fuels for all Insular Areas. Section 9 on the other hand, is intended to provide
immediate "short-term" relief to Virgin Islanders over the next 18 months when the local public
utility believes it will be able to reduce the cost of electricity by 30%.
Section 10 and 11 of the bill deals with legislation I sponsored to bolster and give a boost to the
tourism based economy of my home island of St. Croix.
Section 10 relates to the establishment of Castle Nugent National Historic site. Introduction of
this bill continues an effort I begun in 2006 to continue the great precedent set by our forefathers
when Yellowstone in Wyoming became the first national park. The establishment of the Castle
Nugent Historic Site would provide an excellent opportunity to preserve a very special and
unique landscape for the people of St. Croix and visitors to the island for generations to come.
If designated, the Castle Nugent Historic Site would become the fourth National Park Service
unit on St. Croix. A special resource study authorized in 2006, has determined that the site meets
criteria set by the NPS to determine national significance, suitability and feasibility. The bill
1
PRINTED ON RECYCLED PAPER
..
calls for the preservation of 2,900 acres which include a Caribbean dry forest, pristine coastal
barrier coral reef system and a pre-Columbian and post-European settlement.
In addition to guaranteeing the protection of one of the most ecologically sensitive areas on the
island, H.R. 3726 also preserves a rich part of our historical and cultural past, by preserving the
archaeological remains of our indigenous Native American inhabitants. The property has a long
agricultural history dating back to the 1730s, when the Danish estate house, now listed on the
National Register of Historic Places, was constructed.
Section 11 would establish the St. Croix National Heritage Area on St. Croix, U.S. Virgin
Islands, which would provide us with a great opportunity to showcase and expose St. Croix to
the world. According to a 2009 national research study on U.S. Cultural and Heritage Travel by
Mandela Research. 78% ofall U.S. leisure travelers participated in cultural and /or heritage
activities while traveling. And these travelers spend more, $994 per trip compared to $611 for
the average traveler.
Additionally, 2011 study by the Advisory Panel for Historic Preservation has also confirmed that
tourism is a growth industry worldwide and that there seems to be consistent evidence that
heritage tourism is one of the fastest growing segments of that industry. The St. Croix National
Heritage Area will play an important role in the revitalization of St. Croix; and its towns and
neighborhoods and a key part of strategic economic development planning for the Territory.
Enactment o f a National Heritage Area for St. Croix has been a top priority of mine for almost
ten years. I am therefore hopeful and encouraged that S. 1274 could be the catalyst to finally
make it a reality.
Last but not least, the bill includes my legislation, H.R. 85, to establish a Chief Financial Officer
in section 7. I first introduced legislation to create a Chief financial Officer for my district, the
U. S. Virgin Islands in 2003, At that time, the then governor was warning of layoffs, payless
paydays and reduced services. My financial advisory team was urging a control board, and the
Federal government had put our Housing Authority into receivership, the U S Department of
Education was preparing to place a fiduciary to oversee and control spending in our local
department and the Department of Justice was considering putting other local agencies under
receivership. Our Prisons and waste water systems were under consent decree.
Not seeing any concerted effort to reverse or correct the situation, as an elected leader of my
community I did not feel I could sit by and do nothing. The Bill to create an independent CFO
was my response.
In the 111 th Congress we revised the bill, removing any authority that would infringe on those of
the Governor and his cabinet. This CFO would simply certify the revenue of the Territory. I felt
that this was important then and now as the Virgin Islands' legislators, unions and every day
2
..
citizens repeatedly question the reports and projections of the Virgin Islands government. At the
very least it would confirm the government's projections objectively and independently, and at
best the people of the Virgin Islands would have an accurate and trusted source ofthis
information.
Today after the layoffs of approximately 500 government employees, an across the board 8% cut ,
in salaries, a structural deficit and budget shortfalls in FY 2013 yet to be filled with a 2014
unbalanced budget now before the VI Senate; with union negotiations stalled, and uncertainty on
the restoration of the 8% cuts, coupled with the closure of our largest private sector employer -
the HOVENSA oil refinery - resulting in reduced revenues, I feel that this office is more needed
than ever.
No, it will not solve the fiscal problems we are facing. All of us - elected and other leaders have
a hard road ahead to meet these challenges, but it will pave the way for us working together to
resolve them as we will all trust the numbers and be clear on where we are financially. HR. 85 is
based on the CFO in the District of Columbia and that office has served them well over the past
20 or so years.
Many may ask if such an office is needed why then is it not being created locally. There have
been several attempts to pass legislation aimed at the same goal of better financial accountability
and transparency, but theyhave not passed. The current administration strongly opposes this bill
arid would surely veto such local legislation.
Some may feel that passing this bill would represent an imposition of the will of Congress on
local authority. I would respond that it is legislation introduced by the representative of the
people of the Virgin Islands, and further there are many times that Congress has been and will
continue to be called on to act on behalf ofthe Virgin Islands because we are still governed by an
act of Congress - the Revised Organic Act of 1954.
I had expected that the House would have completed action on H.R. 85 and sent it to you for
further consideration as we have done on four previous occasions but that will not occur until
later this month.
In closing Mr. Chairman and Ranking Member, I would like to request your consideration for
adding two more ofmy bills as S. 1237 moves forward.
The first bill is H.R. 374 which seeks to create an innovative pilot program to leverage private
pension assets to raise revenues for both the federal treasury and investment in the Virgin
Islands. It would creatively address the chronic underfunding of infrastructure needs in the
Virgin Islands through a dedicated source of revenue that would enable the territory to build a
modern infrastructure that would move the islands toward self- sufficiency and reduce
unemployment. These investments would substantially mitigate the federal government's cost
3
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for rebuilding after tropical storms and hurricanes. The Joint Committee on Taxation estimated
that the bill would raise $477 million over 10 years to the U.S. Treasury; however, with the full
implementation of the Roth income cap removal, it is now likely to raise approximately $500
million a year.
The second bill, H.R. 79, would address a problem with the Affordable Care Act which included
a significant increase in the federal medical assistance percentage (FMAP) for the territories but
kept or match at a rate which prevents us from accessing the increased funding. H.R. 79 would
amend the law to tie the FMAP for Puerto Rico, the Virgin Islands, 'Guam, the Northern Mariana
Islands, and American Samoa, beginning in.FY2014, to the highest FMAP applicable to any of
the 50 states. This legislation does not have a cost associated with it because it just shifts the
existing pool of resources that already are available.
Thank you once again Chairman Wyden and Ranking Member Murkowski for scheduling this
hearing today. This concludes my oral remarks. I look forward to answering any questions you
may have.
4
..
STATEMENT
OF
EILEEN SOBECK
ACTING ASSISTANT SECRETARY FOR INSULAR AREAS
UNITED STATES DEPARTMENT OF THE INTERIOR
BEFORE THE
SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES
REGARDING
S. 1237 - THE OMNIBUS TERRITORIES ACT OF 2013
July 11, 2013
Mr. Chairman and members of the Committee on Energy and Natural Resources, I
am pleased to discuss, on behalf of the Department of the Interior, certain
provisions ofthe Omnibus Territories Act of2013, S. 1237. Sections 14,15,17,
18 and 20 of the bill pertain to matters outside ofthe Department's jurisdiction; as
such the Department defers to the relevant federal agencies for their views on these
provisions.
Territorial Sea
Section 3 would give the Commonwealth of the Northern Mariana Islands (CNMI)
authority over the submerged lands out to three geographical miles from its coast
lines.
At present, the CNMI is the only United States territory that does not have title to
the submerged lands in that portion of the United States territorial sea that is three
miles distant from its coastline. It is appropriate that the CNMI be given the same
authority as other territories.
On January 6,2009, by presidential proclamation, the Marianas Trench Marine
National Monument (Monument) was created, including the Islands Unit,
comprising the submerged lands and waters surrounding Uracas, Maug, and
Asuncion, the northernmost islands ofthe CNMI. While creation ofthe monument
..
2
is a historic achievement, it should be remembered that the leaders and people of
the CNMI were and are these three islands' first preservationists. They included in
their 1978, plebiscite-approved constitution the following language:
ARTICLE XIV: NATURAL RESOURCES
Section 1: Marine Resources. The marine resources in the waters off the
coast of the Commonwealth over which the Commonwealth now or
hereafter may have any jurisdiction under United States law shall be
managed, controlled, protected and preserved by the legislature for the
benefit of the people.
Section 2: Uninhabited Islands ... The islands of Maug, Uracas,
Asuncion, Guguan and other islands specified by law shall be maintained as
uninhabited places and used only for the preservation and protection of
natural resources, including but not limited to bird, wildlife and plant
species.
It is important to note that the Northern Marianas Commonwealth Legislature has
never taken action adverse to the preservation of these northern islands and the
waters surrounding them. The people of the CNMI are well aware of their
treasures. CNMI leaders consented to creation ofthe monument because they
believed that the monument would bring Federal assets for marine surveillance,
protection, and enforcement to the northern islands that the CNMI cannot afford.
If enacted, section 3 would become a public law enacted subsequent to the creation
of the Monument, and would convey to the CNMI the submerged lands
surrounding Uracas, Maug, and Asuncion without addressing the effect of this
conveyance on the administrative responsibilities of the Department of the Interior ~
and the Department of Commerce. Presidential Proclamation 8335 (Proclamation)
assigned management responsibility of the Monument to the Secretary of the
Interior, in consultation with the Secretary of Commerce. The proclamation further
states that the "Secretary of Commerce shall have the primary management
responsibility... with respect to fishery-related activities regulated pursuant to the
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. §§ 1801
et seq.) and any other applicable authorities." The Proclamation provides that
submerged lands that are granted to the CNMI "but remain controlled by the
United States under the Antiquities Act may remain part of the monument" for
coordinated management with the CNMI. As envisioned by the Proclamation
establishing the Monument, the Administration remains committed to protecting
..
3
the outstanding resources in the waters surrounding the CNMI's three
northernmost islands.
Specifically, the Department strongly recommends an amendment to section 3 that
addresses the coordination of management as contemplated within the
Proclamation, prior to the transfer of the submerged lands within the Islands Unit
ofthe Monument to the CNMI. Such language would protect the Islands Unit of
the Monument and at the same time acknowledge the prescient and historic
conservation effort of the leaders and people of the CNMI in protecting Uracas,
Maug, and Asuncion, and their surrounding waters.
The Department of the Interior strongly supports section 3 and strongly
recommends the above-referenced amendment. The Department of the Interior
looks forward to the Commonwealth of the Northern Mariana Islands gaining
rights in surrounding submerged lands similar to those accorded other territories.
Adjustment of Scheduled Wage Increases in the CNMI
Section 4 of the bill would slow minimum wage increases in the CNMI by
forgoing the increases slated to take effect on September 30,2013, and 2015. The
50-cent increases scheduled to 6ccur in 2014,2016 and annually thereafter would
remain in effect.
In 2007, the Congress put American Samoa and the CNMI on a path to match the
United States minimum wage within a few years. Legislation dictated increases to
the minimum wage of 50-cents per year, until parity was achieved.
Due to substantial economic hardship in American Samoa - the closure of one of
its two tuna canneries - the law was amended to skip the increases for American
Samoa from 2011 through 2014.
Both territories have isolated locations in the Pacific Ocean in neighborhoods of
low wages. The CNMI has also suffered the loss of one of its two major industries
- garment manufacturing. The purpose of section 4 is to spread out the minimum
wage increases for the CNMI to help ensure the survival of island businesses and
their employees' jobs. Specifically, section 4 would slow the pace of minimum
wage increase until after 2015, when the annual increases would resume, similar to
the adjustment made previously for American Samoa.
..
4
The Department of the Interior has no objection to section 4.
CNMI Immigration Issues
Section 5 deals with fees and funding vocational education curricula and
development o f educational entities, and a five year extension of the statutory
period (through December 31,2019) for lowering the number of CNMI-only
foreign transitional worker permits to zero.
Subsection 1 of Section 5 requires the CNMI government to provide a plan for the
expenditure of educational funds collected (as required by statute) by the
Department of Homeland Security as a supplemental fee on CNMI employers'
transitional worker immigration petitions and provided to the CNMI government,
and a projection of the effectiveness of these funds in finding employment for U.S.
workers. Every two years the Secretary of Homeland Security must report on the
effectiveness of meeting the goals set out in the annual plan.
Subsections 2 and 3 of section 5 also relate to CNMI-specific immigration
provisions contained in the Consolidated Natural Resources Act of 2008 (CNRA).
The CNRA shifted administration of immigration in the CNMI from CNMI to
Federal authority, but also established a five-year transition period to allow the
CNMI economy to adjust to the new regime.
Coincident with change in World Trade Organization rules and the demise of the
CNMI garment industry in the late 200Os·, the CNMI's economy has struggled.
The resulting tax and revenue decline has been challenging for the CNMI
government.
The Department of the Interior has always supported measures that promote
economic development in the CNMI, and in the CNRA, the Congress specifically
directed the Department of the Interior to aid the CNMI economy during the
immigration transition. As a result, in 2011, the Department conducted a Forum
on Economic and Labor Development (FELD) in Saipan, designed to elicit from
the CNMI community ideas and goals for the CNMI economy. The Department
later provided $ 1 million in grant funds to implement the FELD findings.
While it cannot yet be characterized as an economic rebound, statistics from recent
months show increases in CNMI tourism and hotel bookings.
5
Nevertheless, businesses and CNMI government officials are concerned that if the
approximately 12,000 foreign workers resident in the CNMI under the transitional
worker program were forced to leave at the end of 2014, the reduction would have
significant adverse consequences for the CNMI economy.
Under the CNRA, the Secretary of Labor already has the discretion to extend the
CNMI-only transitional worker program by up to five years if warranted by
economic conditions. The Department of Labor is now conducting studies that
will inform that decision.
The Department of the Interior defers to the Departments of Labor and Homeland
Security regarding important aspects of section 5.
Study of Electric Rates in the Insular Areas
Section 6 of the bill is entitled "Study of Electric Rates in the Insular Areas." The
legislative language that follows, however, goes much beyond a study. The
language calls for an "energy action plan" for each territory and freely associated
state (FAS) and implementation ofthose plans. The legislative language is largely
duplicative of section 604 of Public Law 96-597 (48 USC 1492), except that, the
Secretary of the Interior would be responsible for the described energy effort,
rather than the Secretary of Energy.
It should be noted that eight years ago, Interior undertook a comprehensive effort
to study energy needs in the U.S. territories and FAS, and to develop viable energy
plans (which included an appropriate role for renewable energy sources) for each
jurisdiction. Currently, the Office of Insular Affairs is supporting broad renewable
energy planning efforts through the National Renewable Energy Laboratory
(NREL) financed by our Technical Assistance Program. The President's 2014
budget for OIA includes funding for specific energy projects under Empowering
Insular Communities to implement a number of the NREL recommendations.
The Department of the Interior opposes section 6 of S. 1237 as being unnecessary
because it is duplicative of section 604 of Public Law 96-597, and of current
efforts to implement the energy plans that have been and are being developed.
..
6
Chief Financial Officer of the Virgin Islands
Section 7 includes a provision for establishing a chief financial officer (CFO) for
the Virgin Islands, and a plebiscite of Virgin Island voters on the issue.
In the mid-2000s, an earlier CFO bill would have placed significant restrictions on
local self-government and the powers of the elected Governor of the Virgin Islands
as established in the Virgin Islands Revised Organic Act. A revised CFO bill was
the subject ofa hearing last year in the House of Representatives. The Department
of the Interior had no objection to that bill because it would have constituted "only
de minimus interference with self-government in the Virgin Islands." We noted
that the purpose of the bill was to rein in deficit spending, but that the bill did not
require a balanced budget.
S. 1237 adds a new provision requiring a plebiscite on the question of whether or
not a chief financial officer position should be established. This extra layer of
approval for the CFO position by the voters of the Virgin Islands would
demonstrate acceptance of the concept or not, by the citizens of the Virgin Islands.
The Department of the Interior has no objection to the enactment of section 7.
Reports on Estimates of Revenue
Section 8 would require the governors of American Samoa, the Northern Mariana
Islands, Puerto Rico, Guam and the Virgin islands each to submit a report on the
process for developing annual estimates ofthe government's revenues and
expenditures and any supporting documents and schedules to appropriate
committees of the Congress and the Comptroller General of the United States, and
also require the Comptroller General to submit a report evaluating the
reasonableness of those estimates and if necessary submit recommendations for
improving the processes for developing the estimates to appropriate committees of
the Congress.
Over the years, in statements related to the legislation that would create a Chief
Financial Officer ofthe Virgin Islands, the Department of the Interior has stated
that all the territories have had difficulty with rising debt due to problematic
budgeting processes. Section 8 would provide a framework for studying the
budget processes of the territories.
..
7
Because the governors of each of the territories would be so intimately involved,
the Department of the Interior defers to the opinions of the governors of each of the
United States territories with regard to this provision.
Low-Income Home Energy Assistance Program
Section 9 would provide that under the Low-Income Home Energy Assistance Act
of 1981 energy assistance would be 300 percent of the normal rate when applied to
households located in the Virgin Islands in years 2014 through 2017.
United States Virgin Islanders are struggling with some of the highest electric rates
in the U.S. Currently, the residential rate in the Virgin Islands is 50 cents per
kilowatt hour, with the commercial rate at 54 cents per kilowatt hour. These high
Virgin Islands rates contrast significantly with rates elsewhere in the United States,
which average 12.8 cents per KWH.
Considering both the high poverty rates and high electric rates in the Virgin
Islands, one can understand the extreme difficulty under which many Virgin
Islands residents are living. Many residents cannot afford to keep the lights on,
and businesses are closing.
Given the fact that electric rates in the Virgin Islands are five times that on the U.S.
mainland, a LIHEAP payment of three times the mainland amount for a limited,
four-year period of time would not be unreasonable.
In addition, the territories of Guam, CNMI, and American Samoa are also paying
significantly higher residential rates than in the rest of the United States. The rates
are 24.5 cents per KWH on Guam, 32 cents per KWH in the CNMI, and 39 cents
per KWH in American Samoa.
The Department of the Interior has no objection to the enactment of section 9, but
suggests, based on the rates paid by each of the territories, that a formula for
Guam, CNMI, and American Samoa be included in this section as well.
Castle Nugent National Historic Site Establishment
Section 10 would establish the Castle Nugent National Historic Site on the island
of St. Croix in the U.S. Virgin Islands as a unit ofthe National Park System. This
..
8
proposed national historic site was the subject of a special resource study,
completed in 2010, that found that the site met the National Park Service's criteria
for inclusion in the National Park System.
This 2,900-acre site is located along the arid southeastern shore of St. Croix, about
three miles south of the town of Christiansted. The terrain is mostly rolling and
hilly with a mixture of dry forest, native vegetation, and rangeland that offers
picturesque views to the Caribbean Sea and to distant parts of the island.
Establishing this site as a unit of the National Park System would provide the
opportunity to preserve and protect this outstanding Caribbean cultural landscape
and interpret the cotton era and related agricultural themes that have been
instrumental in the development of St. Croix and the Virgin Islands. It would also
help protect five pre-Columbian archeological sites, two of which are among the
oldest sites on St. Croix.
The Department supports this section with an amendment. The recommended
amendment, which would insert the standard language used in bills establishing
new areas of the National Park System, is to strike "consists" on line 12 of page 19
and insert "shall consist".
St. Croix National Heritage Area
Section 11 would establish the St. Croix National Heritage Area on the island of
St. Croix. A feasibility study completed in 2012 by the National Park Service
f6und that this proposed heritage area, which would include the entire island, met
the Service's interim criteria for designation as a National Heritage Area. The
heritage area would be focused on five themes: early cultures, slavery and
emancipation, the influence of seven colonial powers, the island's unique
geography and natural environment, and modern-day cultures.
The Department supports the objectives ofthis section. However, the Department
recommends that Congress enact program legislation that establishes criteria to
evaluate potentially qualified National Heritage Areas and a process for the
designation, funding, and administration of these areas before designating any
additional new National Heritage Areas. There are currently 49 designated
national heritage areas, yet there is no authority in law that guides the designation
and administration of these areas. Program legislation would provide a much-
needed framework for evaluating proposed national heritage areas, offering
guidelines for successful planning and management, clarifying the roles and
..
9
responsibilities of all parties, and standardizing timeframes and funding for
designated areas.
Ifthe committee moves forward on S. 1237 with section 11 included, we would
like to recommend amendments to some of the terms used in this section. We
would be happy to provide the committee with our recommended amendments.
Guam War Claims Review Commission
Section 12 would approve payments and a funding source for claims arising from
the World War II Japanese occupation of Guam.
Sixty-nine years ago this month, U.S. forces stormed the beaches of Asan and Agat
on the island of Guam. The fierce battles in the weeks that followed would end
Japan's two-and-a-half year occupation of Guam. Approximately a thousand
United States national residents of Guam died during the occupation; the people of
Guam were subjected to summary executions, beheadings, rapes, torture, beatings,
forced labor, forced march and internment.
With the passage of the Guam Meritorious Claims Act of 1945, the people of
Guam became the first group of United States nationals to be made eligible for
payment of claims by the United States for damages suffered during the war. In
the years that followed, however, many on Guam came to question whether the
Guam Meritorious Claims Act, as implemented, sufficiently compensated the
people of Guam for their suffering.
The Guam War Claims Review Commission, created pursuant to legislation passed
in 2002, was charged with determining whether there was parity in the treatment of
Guamanians' World War II claims as compared with the claims of U.S. citizens or
nationals in other areas occupied by Japan during the war. The commission
determined that Guamanians did not receive treatment in parity with other United
States individuals who similarly suffered during World War II.
This section would provide payments to persons now living on Guam who actually
suffered the Japanese occupation during World War II. It would not provide
payments to heirs of survivors of the Guam occupation, but would compensate
heirs of the approximate 1,000 United States national residents of Guam who died
during the Japanese occupation.
..
10
Funding for this section would be provided from the Guam Organic Act section 30
funding that is in excess of section 30 funding for fiscal year 2012.
The Department of the Interior recommends that the committee seek broad counsel
among leaders in Guam regarding the fmancing of claims under section 12.
Use of Certain Expenditures as In-Kind Contributions
Section 13 would allow territorial and Hawaii government costs ascribed to the
migration of freely associated state (FAS) citizens to Guam, Hawaii, the CNMI
and American Samoa to be valued and applied as in-kind local matching
contributions for Federal programs.
With amendments to the Compacts of Free Association legislation passed in 2003,
the Congress appropriated $30 million annually to be distributed among the four
affected U.S. jurisdictions based on an enumeration of FAS citizens in those four
jurisdictions. The Congress provided an additional $5 million in each of fiscal
years 2012 and 2013. It is uncontested that the impact of migration to Guam,
Hawaii, CNMI and American Samoa exceeds the amounts appropriated.
Under section 13 of S. 1237, amounts above the annual payments could be
classified as eligible amounts to be drawn on as "in-kind contributions" that would
aid the affected jurisdictions in satisfying matching requirements for Federal
programs.
In addition, under the compact legislation, the governors of Guam, Hawaii, the
CNMI and American Samoa are invited annually to provide reports on the impact
of migration from the freely associated states of the Marshall Islands, the Federated
* States of Micronesia, and Palau on their respective jurisdictions. Guam produces
such a report annually; Hawaii sporadically; American Samoa and the CNMI do
not. The Department of the Interior forwards these reports to the Congress.
Among the governments, there is no consistent format or standards for inclusion of
costs, and no inclusion of benefits that FAS citizens provide the respective
jurisdiction. In its 2012 report on FAS migration, the Government Accountability
Office (GAO) stated:
. . . some jurisdictions did not accurately define compact migrants,
account for federal funding that supplemented local expenditures,
..
11
or include revenue received from compact migrants.
The GAO recommendations did not include specific recommendations necessary
to achieve accuracy in reporting impacts ofthe compacts.
The Department of the Interior has urged the governors to develop consistent
standards of reporting among themselves, including the definition of FAS
migrants, accurate accounting of migrant costs to the affected government, and
benefits received by the affected jurisdiction from employment, taxation and
consumption. To date, they have not done so.
Assuming that accurate reporting is achieved in future reports, the accuracy of past
reports remains a problem for calculating the amounts from which "in-kind
contributions" could be drawn.
Without establishing standards, the language in section 13 is untenable. For
example, subsection (b) calls on the Secretary of the Interior to determine amounts
eligible for "in-kind" classification "based on a reasonable estimate of the amount
of impact expenditures for the Freely Associated States."- The words I quoted give
no direction for the Secretary to arrive at an estimate and the expenditures are not
stated to be those of the four U.S. affected jurisdictions. Specific and exacting
standards are missing.
The Department of the Interior opposes the enactment of section 13.
Waiver of Local Matching Requirements
Section 16 would amend section 501 ofPublic Law 95-134, which allows waiver
of local matching requirements for Federal grants for U.S. territories, to require the
waiver of all matching of $500,000 or less.
The original waiver provision, giving all federal agencies permissive authority to
waive local matching requirements of $200,000 or less, has been in effect since
1977. Since 1980, statute has required the matching waiver for grants of the
Department of the Interior. Generally the law has been interpreted not to apply to
discretionary grants, because a granting agency could decide, in its discretion, to
forgo making the grant if a territory were to insist on the waiver of the match.
Such an eventuality would harm the territories.
..
12
Considering that more than 30 years have passed since the $200,000 waiver was
established, the increase to $500,000 would seem appropriate and consistent with
inflation over time.
The Department ofthe Interior has no objection to the enactment of section 16
with regard to grants from the Department of the Interior. We express no view
with regard to waiver changes for other Federal agencies.
American Samoa Citizenship Plebiscite Act
Section 19 would require the Secretary of the Interior to direct the American
Samoa Election Office to conduct a plebiscite on whether or not persons born in
American Samoa desire United States citizenship.
Under the Tripartite Convention of 1899, ratified February 16, 1900, Great Britain
and Germany ceded claims of the eastern portion of the Samoan Islands to the
United States. This portion of the archipelago became known as "American
Samoa." The Matai (the chiefs) of Tutuila and Manu'a, signed voluntary Deeds of
Cession in 1901 and 1904, respectively, which were subsequently accepted,
ratified and confirmed retroactively by Congress. In 1929, the Congress provided
that with regard to the government of the territory of American Samoa, all civil,
judicial, and military powers shall be exercised as the President shall direct. In
1951, the President delegated his authority to the Secretary of the Interior.
Under the authority of the Secretary of the Interior, American Samoa adopted a
constitution in 1960. The issue of citizenship versus status as a U.S. national was a
key issue. The Samoan leaders and people were concerned that U.S. citizenship
could cause the equal protection clause of the United States Constitution to
interfere with their communal land tenure system, chiefly or matai titles, and the
viability of Fono's Senate due to the selection of Senators from among persons
with marni titles.
To protect and ensure continuation offa 'a Samoa (the Samoan way of life),
Samoans chose to be U.S. nationals rather than citizens of the United States. Both
citizens and nationals owe allegiance to the United States, although the United
States Constitution grants certain privileges to citizens, but not persons who are
nationals alone.
..
13
The United States national status ofpersons born in American Samoa was upheld
on June 26, 2013, by the United States District Court for the District of Columbia
in Leneuoti Fiafia Tuaua et al. v. United States ofAmerica et at. which included
the following statement:
' To date, the Congress has not seen fit to bestow birthright citizenship
on American Samoa, and in accordance with the law, this Court must
and will respect that choice.
In the fifty years since the adoption of the original constitution of American
Samoa, attitudes of many in the local population of American Samoa may have
shifted. The plebiscite called for in section 19 will bring new discussion to these
land, matai title and Senate issues . These are issues for the American Samoa
polity to discuss and decide.
Should the proposed vote in American Samoa favor citizenship, leaders in
American Samoa would then approach the Secretary of the Interior and the
Congress, to seek action on the issue.
The Department of the Interior has no objection to the enactment of section 19.
Marine Turtles
Section 20 would extend the Marine Turtle Conservation Act of 2004 to United
States territories and possessions. Marine turtles are "flagship species" for both
local and international coastal conservation. Because marine turtles
circumnavigate the world's oceans to reach their nesting beaches, their
conservation must be addressed through global efforts. By focusing on these
species and their habitats, we can more adequately conserve and manage
ecologically critical coastal and marine habitats around the world.
The Department's U.S. Fish and Wildlife Service and the National Oceanic and
Atmospheric Administration (within the Department of Commerce) share
jurisdiction for the conservation of marine turtles. The Service focuses
conservation activities on nesting beaches while NOAA works to conserve and
recover turtles in their marine habitats. The Fish and Wildlife Service also
administers the Marine Turtle Conservation Fund, which provides grants to
countries with sea turtle nesting beaches on a cost share basis, to implement sea
..
14
turtle conservation programs. Such international conservation is a key part of the
effort to recover and conserve these global species.
The Department of the Interior supports the intent of section 20 to provide greater
funding opportunities for turtle conservation in the U.S. territories. However, we
are concerned that this change would significantly dilute the limited funds
available to implement conservation measures in foreign countries. There are
resources already available for sea turtle conservation in the U.S., including the
territories. The relatively small amount of Marine Turtle Conservation Fund grants
(less than $1.8 million in FY 2012), which provide critical assistance to our
international partners, accounts for about six percent of the overall funds spent by
the U.S. on sea turtle conservation. If applicants in the U.S. are made eligible, this
limited amount for critically important international work is likely to be
significantly reduced.
Conclusion
Mr. Chairman, we at the Department of the Interior are pleased that you and the
ranking member have introduced the Territorial Omnibus Act of 2013. Despite the
fact that the Department cannot support each and every provision, the bill gives an
airing to important territorial issues of long standing. We will be pleased to work
with the Committee as it finalizes the legislation.
..
July 8, 2013 CONGRESSIONAL RECORD- SENATE S5529
COMMITTEE ON ENERGY AND NATURAL and Natural Resources, United States consistent with the Inter-American Demo-
RESOURCES Senate, Washingion, D.C. 20510-6150, or cratic Charter.
~~ like to announce for the information of .senate.gov.
Mr. 'WYDEN. Mr. President, I would by e-mail to John_Assini@energy SEC. 3. STATEMENT OF POLICY.
It is the policy of the United States-
(1) to promote dernocracy and the rule of
the Senate and the public that a hear- For further information, please con- law throughout the Western Hemisphere;
ing has been scheduled before the Sen- tact Sara Tucker at (202) 224-6224 or (2) to promote and protect human rights
ate Committee on Energy and Natural John Assini at (202) 224-9313 and fundamental freedoms in the Western
Resources. The hearing will be held on Hemisphere; and
Thursday, July 11, 2013, at 9:30 a.m., in (3) to support the practices, purposes, and
room 366 of the Dirksen Senate Office PRIVILEGES OF THE FLOOR principles expressed in the Charter of the Or-
Building. Mr. HARKIN. Mr. President, I ask Declaration on the Rights and Duties of
ganization of American States, the American
The purpose of the hearing is to con- unanimous consent that Rachel Mur- Man, the Inter-American Democratic Char-
sider S. 1237, the Omnibus Territories phy, Alexandra Pena, and Lissandra ter, and other fundamental instruments of
Act.
Villa of my staff be granted floor privi- democracy.
Because of the limited time available
leges for the duration of today's ses- SEC.'4. SENSE OF CONGRESS.
for the hearing, witnesses may testify sion. It is the sense of Congress that;--
by invitation only. However, those The PRESIDING OFFICER. Without (1) the Organization of American States
wishing to submit written testimony objection, it is so ordered.
(OAS) should be the primary multi-lateral
for the hearing record may do so by diplomatic entity for regional dispute reso-
sending it to the Committee on Energy - lution and promotion of democratic govern-
ance and institutions;
and Natural Resources, United States ORG-ANIZATION OF AMERICAN (2) the OAS is a valuable platform from
Senate, Washington, D.C. 20510-6150, or STATES REVITALIZATION AND which to launch initiatives aimed to benefit
by e-mail to danielle_deran6y@ REFORM ACT OF 2013 the countries of the Western Hemisphere;
energy.senate.gov.
For further information, please con- Mr. REID. Mr. President, I ask unan- (3) the Summit of the Americas institution
and process embodies a valuable complement
tact Isaiah Aki,n at (202) 224-5360 or . imous consent that the Senate proceed to regional dialogue and cooperation;
Danielle Deraney at (202) 224-1219. to the consideration of Calendar No. 87, (4) the Summit of the Americas process
S. 793. should be formally and more effectively inte-
COMMITTEE ON ENERGY AND NATURAL
RESOURCES The PRESIDING OFFICER. The grated into the work of the OAS, the Inter-
Mr. WYDEN. Mr. President, I would clerk will report the bill by title. American Development Bank, and other
like to announce for the information of The legislative clerk read as follows: Members of the Joint Summit Working
Group, and the OAS should play a central
the Senate and the public that a hear- A bill (S. 793) to support revitalization and role in overseeing and managing the Summit
ing has been scheduled before the Sen- reform of the Organization of American process;
ate Committee on Energy and Natural States, and for other purposes. (5) the OAS General Assembly and the
Resources. The hearing will be held on There being no objection, the Senate Summit of the Americas events should be
Tuesday, July 16, 2013, at 10 a.m., in proceeded to consider the bill. combined geographically and chrono-
room SD-366 of the Dirksen Senate Of- Mr. REID. I ask unanimous consent logically in the years in which they coincide;
fice Building. that the bill be read a third time and (6) to ensure an appropriate balance of pri-
orities, the OAS should review its core func-
The purpose of this oversight hearing passed and the motion to reconsider be tions no less than annually and seek oppor-
is to explore how U. S. gasoline and fuel considered made and laid upon the tunities to reduce the number of mandates
prices are being affected by the current table, with no intervening action or de- not directly related to its core functions;
boom in domestic oil production and bate. (7) key OAS strengths lie in strengthening
the restructuring of the U. S. refining The PRESIDING OFFICER. Without peace and security, promoting and consoli-
industry and distribution system. objection, it is so ordered. dating representative democracy, regional
Because of the limited time available The bill (S. 793) was ordered to be en- dispute resolutionI election assistance and
monitoring, fostering economic growth and
for the hearing, witnesses may testify grossed for a third reading, was read development cooperation, facilitating trade,
by invitation only. However, those the third time, and passed, as follows: addressing migration, combating illicit drug
wishing to submit written testimony S. 793 trafficking and transnational crime, and sup-
for the hearing record may do so by Be it enacted by the Senate and House Of Rep- port for the Inter-American Human Rights
sending it to the Committee on Energy resentatives of the United States of America in System;
and Natural Resources, United States Congress assembled, (8) the core cornpetencies referred to in
Senate, Washington, D.C. 20510-6150, or SECTION 1. SHORT TITLE. paragraph (7) should remain central to the
strategic planning process of the OAS and
by e-mail to Lauren_Goldschmidt@ This Act may be cited as the "Organiza- the consideration of future mandates;
energy.senate.gov. tion of American States Revitalization and
(9) any changes to OAS mandates should be
For further information, please con- Reform Act of 2013"
accepted by the member states only after an
tact Dave Berick at (202) 224-2209 or SEC. 2. FINDINGS. analysis is conducted and formally presented
Lauren Goldschmidt at (202) 224-5488. Congress makes the following findings: consisting' of a calculation of the financial
(1) The Charter of the Organization of costs associated with the mandate, an as-
SUBCOMMITTEE ON WATER AND POWER
American States recognizes that- sessment of the comparative advantage of
Mr. WYDEN. Mr. President, I would (A) representative democracy is indispen- the OAS in the implementation of the man-
like to announce for the information of sable for the stability, peace, and develop- date, and a description of the ways in which
the Senate and the public that a hear- ment of the Western Hemisphere; and the mandate advances the organization's
ing has been scheduled before the Sub- (B) a purpose of the Organization of Amer- core mission;
committee on Water and Power of the ican States is to promote and consolidate (10) any new mandates should include, in
Committee on Energy and Natural Re- representative democracy, with due respect addition to the analysis described in para-
sources. The hearing will be held on for the principle of nonintervention. graph (9), an identification of the source of
Tuesday, July 16, 2013, at 2:30 p.m., in (2) The United States supports the pur- funding to be used to implement the man-
poses and principles enshrined in- date;
room SD-366 of the Dirksen Senate Of- (A) the Charter of the Organization of (11) the OAS would benefit from enhanced
fice Building. American States; coordination between the OAS and the Inter-
The purpose of this hearing is to re- (B) the Inter-American Democratic Char- American Development Bank on issues that
ceive testimony on the Bureau of Rec- ter; and relate to economic development;
lamation's Colorado River Basin Water (C) the American Declaration on the (12) the OAS would benefit from standard
Supply and Demand Study. Rights and Duties or Man. reporting requirements for each project and
Because of the limited time available , (3) The United States supports the Organi- grant agreement; and
for the hearing, witnesses may testify zation of American States in its efforts with (13) the OAS would benefit from effective
all member states to meet our commitments implementation of-
by invitation only. However, those under the instrliments set forth in paragraph (A) transparent and merit-based human re-
wishing to submit written testimony (2). source standards and processes; and
for the hearing record may do so by (4) Congress supports the Organization of (B) transparent hiring, firing, and pro-
sending it to the Committee on Energy American States as it operates in a manner motion standards and processes, including
..
S5530 CONGRESSIONAL RECORD- SENATE July 8, 2013
with respect to factors such as gender and cally prioritize, and where appropriate, re- ceed to executive session to consider
national origin. duce current and future mandates; Calendar No. 97, the nomination of Jen-
SEC. 5. ORGANIZATION OF AMERICAN STATES RE- (3) analyzes the progress made by the OAS nifer Dorsey to be a U.S. district judge 1
VITALIZATION AND REFORM STRAT- to adopt and effectively implement trans- for the District of Nevada, and that
EGY. parent and merit-based human resource
(a) STRATEGY.- standards and practices and transparent hir- there be 1 hour of debate equally di-
(1) IN GENERAL.-Not later than 180 days ing, firing, and promotion standards and vided and controlled in the usual form
after' the date of the enactment of this Act, processes, including with respect to factors and all other provisions of the previous
the Secretary of State shall submit to the such as gender and national origin; order remai 'n effect; and finally, that
Committee on Foreign Relations of the Sen- (4) analyzes the progress made by the OAS the Senat recess from 12:30 p.m. until
ate and the Committee on Foreign Affairs of to · adopt and effectively implement a prac- 2:15 p.m o allow for the weekly caucus
the House of Representatives a multiyear tice of soliciting member quotas to be paid rneeti s.
strategy that~ on a schedule that will improve the consist- T PRESIDING OFFICER. Without
(A) identifies a path toward the ado tion of ency of its operating budget; and ,
necessary reforms that prioritize an rein- (5) analyzes the progress made by the OAS o ection, it is so ordered.
force the OAS's core competencies de ribed to review, streamline, and prioritize man-
in section 4(7); dates to focus on core missions and make ef
(B) outlines an approach to secure from he ficient and effective use of available fundi . PROGRAM
OAS effective adoption of-
(i) a results-based budgeting process Mr. REID. Mr. President, there will
order to strategically prioritize, and wher ORDERS FOR TUESDAY, JU, 9, be a vote on the Dorsey nomination at
appropriate, reduce current and future man- 2013 noon tomorrow.
dates; and
(ii) transparent hiring, firing, and pro- Mr. REID. Mr. President, sk unan-
motion practices; and. 'mous consent that when he Senate
(C) reflects the inputs and coordination mpletes its business oday, it ad- ADJOURNMENT UNTIL 10 A.M.
from other Executive Branch agencies, as ap- jo rn until 10 a.m. on esday, July 9, TOMORROW
propriate. 201 ; that following he prayer and Mr. REID. Mr. President, if there is
(2) POLICY PRIORITIES AND COORDINATION.- ple e, the mornin hour be deemed no further business to come before the
The Secretary of State shall- expi d, the Journ of proceedings be Senate, I ask unanimous consent that
(A) carry out diplomatic engagement to appro ed to date and the tirne for the it adjourn under the previous order.
build support for reforms and budgetary bur- two le ders be eserved for their use There being no objection, the Senate,
den sharing among OAS member states and
later i the ay; that the majority at 7:03 p.m., adjourned until Tuesday,
observers;
(B) promote donor coordination among leader t en recognized and that fol- July 9, 2013, at 10 a.m.
0AS member states; and lowing th emarks of the two leaders,
(C) help set priorities for the OAS. the time ntil 11 a.m. be equally di- -
(b) BRIEFINGS.-The Secretary of State vided a ontrolled between the two
shall offer to the committees referred to in leaders or heir designees, with Sen- CONFIRMATION
subsection (a)(1) a quarterly briefing that- ators ermit ed to speak therein for up Executive nomination confirmed by
(1) reviews assessed and voluntary . con-
to 1 minute each, with the majority the Senate -July 8, 2013:
tributions;
(2) analyzes the progress made by the OAS co rolling th first half and the Re- THE JUDICIARY
to adopt and effectively implement a results- p licans cont olling the second half; GREGORY ALAN PHILLIPS. OF WYOMING. TO BE UNITED
based budgeting process in order to strategi- rth6r, that at 1 a.m. the Senate pro- STATES CIRCUIT JUDGE FOR THE TENTH CIRCUIT.
j
..
S5498 CONGRESSIONAL RECORD- SENATE June 27, 2013
Scenic Rivers System, and for other purposes Mr. LEAHY, Mr. SANDERS, Mrs. SHA- By Mr. CASEY (for himself and Mr.
(Rept. No. 113-60). HEEN, Mr. SCHATZ, Mr. LEVIN, Ms. HARKIN): ·
By Mr. WYDEN, from the Committee on - HIRONO, Mrs. MCCASKILL, Mr. MUR- S. 1248. A bill to permit employees to re-
Energy and Natural Resources, with an PHY, Mr. BLUMENTHAL, Ms. BALDWIN, quest, and to ensure employers consider re-
amendment: Mr. BEGICH, Mr, HEINRICH, Mrs. GILLI- guests for, flexible work terms and condi-
S. 368. A bill to reauthorize the Federal BRAND, Mr, CARDIN, Mr. MERKLEY, tions, and for other purposes; to the Com-
Land.Transaction Facilitation Act, and for Mr, ROCKEFELLER, Mr, -WYDEN, Mrs. mittee on Health, Education, Labor, and
other purposes (Rept. No. 113-61). BOXER, Ms. MIKULSKI, Mr. NELSON, Pensions.
By Mr. WYDEN, from the Committee on Mr. JOHNSON of, South Dakota, Mr. By Mr. BLUMENTHAL (for himself,
Energy and Natural Resources, without CASEY, and Mr. CooNS): Ms. COLLINS, Mr. PORTMAN, Mr.
amendment: . S. 1238. A bill to amend the Higher Edu- CRAPO, Mr. KIRK, and Mrs. SHAHEEN):
S. 371. A bill to establish the Blackstone cation Act of 1965 to extend the current re- S. 1249. A bill to rename the Office to Mon-
River Valley National Historical Park, to duced interest rate for undergraduate Fed- itor and Combat Trafficking of the Depart-
dedicate th6 Park to John H. Chafee, and for eral Direct Stafford Loans for 1 year, to ment of State the Bureau' to Monitor and
other purposes (Rept. No. 113-62). modify required distribution rules for pen- Combat Trafficking in Persons and - to pro-
S. 447. A bill to provide for the conveyance sion plans, and for other purposes; placed on vide for an Assistant Secretary to head luch
of certain cemeteries that are located on Na- the calendar. Bureau, and for other purposes; to the Com-
tional Forest System land in Black Hills Na- By Mrs. GILLIBRAND: mittee on Foreign Relations.
tional Forest, South Dakota (Rept. No. 113- S. 1239. A bill to expand the research and By Mr. WYDEN (for himself and Mr.
63). awareness activities of the National Insti- HOEVEN):
By Mr. WYDEN, from the Committee on tute of Arthritis and Musculoskeletal and S. 1250. A bill to provide $50,000,000,000 in
Energy and Natural Resources, with an Skin Diseases and the Centers for Disease new transportation infrastructure funding
Control and Prevention with respect t6 through bonding to empower States and
amendment in the nature of a substitute:
S. 476. A bill to amend the Chesapeake and scleroderma, and for other purposes; to the local governments to complete significant
Ohio Canal Development Act to extend to Committee on Health, Education, Labor, and infrastructure projects across all modes of
Pensions. transportation, including roads, bridges, rail
the Chesapeake and Ohio Canal National His-
By Mr. WYDEN (for himself, Ms. MUR- and transit systems, ports, and inland water-
torical Park Commission (Rept. No. 113-64).
KOWSKI, Mrs. FEINSTEIN, and Mr. ways, .and for other purposes; to the Com-
By Mr. WYDEN, from the Committee on
ALEXANDER): mittee on Finance.
Energy and Natural Resources, with amend- S. 1240. A bill to establish a new organiza- By Mr. REED (for himself, Mrs. FISCH-
ments:
tion to manage nuclear waste, provide a con- ER, Mr. MENENDEZ, Mr. CASEY, Mr.
S. 507. A bill to establish the Manhattan
sensual process for siting nuclear waste fa- FRANKEN, and Ms- KLOBUCHAR):
Project National Historical Park in Oak cilities, ensure adequate funding for man- S. 1251. A bill to establish programs with
Ridge, Tennessee, Los Alamos, New Mexico, aging nuclear waste, and for other purposes; respect to childhood, adolescent, and young
and Hanford, Washington, and for other pur- to the Committee on Energy and Natural Re- adult cancer; to the Committee on Health,
poses (Rept. No. 113-65).
sources. Education, Labor, and Pensions.
S. 609. A bill to authorize the Secretary of By Mr. MANCHIN (for himself, Mr. ~ By Mr. SANDERS (for himself and Mr.
the Interior to convey certain Federal land KING, Mr. ALEXANDER, Mr. COBURN, *' LEAHY):
in San Juan County, New Mexico, and for Mr. BURR, Mr. CARPER, 4(Is. Ayo'I·rE,~<~5. 1252. A bill to amend the Wild and Sce-
other purposes (Rept. No. 113-66). and Mr. ISAKSON): I hic Rivers Act to designate segments of the
By Mr. WYDEN, from the Committee on S- 1241. A bill to establish the interest rate Missisquoi River and the Trout River in the
Energy and Natural Resources, with amend- for certain' Federal student loans, and for State of Vermont, as components of the Na-
ments and an amendment to the title: other purposes; placed on the calendar. tional Wild and Sceric Rivers System; to the
S. 736. A bill to establish a maximum By Mr. BROWN (for himself, Mr. Committee on Energy and Natural Re-
amount for special use permit fees applicable · MERKLEY, Mrs. GILLIBRAND, Mr. ,sources.
to certain cabins on National Forest System COONS, Mr. HARKIN, Mrs. MURRAY,_1- By Mr. MURPHY (for himself and Mr.
land in the State of Alaska (Rept. No. 113- Mr. BLUMENTHAL, Mr. WHITEHOUSE,-A BLUMENTHAL):
67). and Mrs. BOXER): / ' S. 1253. A bill to amend the Wild and Sce-
By Mr. WYDEN, from the Committee on S. 1242. A bill to amend the Fair Housing nic Rivers Act to designate certain segments
Energy and Natural Resources, without Act, and for other purposes; to the Com- - of the Farmington River and Salmon Brook
amendment: mittee on the Judiciary. in the State of Connecticut as components of
S. 757. A bill to provide for the implemen- By Mrs. MURRAY: the National Wild and Scenic Rivers System,
tation of the multispecies habitat conserva- S. 1243. An original bill making appropria- and for other purposes; to the Committee on
tion plan for the Virgin River, Neva¢la, and tions for the Departments of Transportation, Energy and Natural Resources.
Lincoln County, Nevada, to extend the au- and Housing and Urban Development, and re- By Mr. NELSON (for himself„ Mr.
thority to purchase certain parcels of public lated agencies for the fiscal year ending Sep- PORTMAN, Mr. BEGICH, Mr. ROCKE-
land, and for other purposes (Rept. No. 113- tember 30, 2014, and for other purposes; from FELLER, Mr. BLUMENTHAL, Mr. KING,
68). - the Committee on Appro©riations; placed on Mr. CARDIN, Ms. CANTWELL, MS. LAN-
By Mr. WYDEN, from the 6ommittee on the calendar. ' - DRIEU, Mr. WICKER, and Mr.
Energy and Natural Resources, with an By Mr. PRYOR: MERKLEY):
amendment in the nature of a substitute: S. 1244. An original bill making appropria- S. 1254. A bill to amend the Harmful Algal
H.R. 316. A bill to reinstate and transfer tions for Agriculture, Rural Development, Blooms and Hypoxia Research and Control
certain hydroelectric licenses and extend the Food and Drug Administration, and Related Act of 1998, and for other purposes; to the
deadline for commencement of construction Agencies programs for the fiscal year ending Committee on Commerce, Science, and
of certain hydroelectric projects (Rept. No. September 30, 2014, and for other purposes; Transportation.
113-69). from the Committee on Appropriations; By Mr. HELLER:
placed on the calendar. S. 1255. A bill to amend the Internal Rev-
- By Mrs. FEINSTEIN: enue Code of 1986 to provide for a deduction
IN~RODUCTION OF BILLS AND S. 1245. An original bill making appropria- for travel expemses to medical centers of the
JOINT RESOLUTIONS tions for energy and water development and Debartment of Veterans Affairs in connec- 1
related agencies for the fiscal year ending tion with examinations or treatments relat-
The following bills and joint resolu- September 30, 2014, and for other purposes; ing to service-connected disabilities; to the
tions were introduced, read the first from the Committee on Appropriations; Committee on Finance.
and second tirnes by unanirnous con- placed on the calendar. By Mrs. FEINSTEIN (for herself, Ms.
sent, and referred as indicated: 
' By Mr. MURPHY (for himself, Mr. COLLINS, Mr. REED: Ms. CANTWELL,
BROWN, Mr. MERKLEY, and Mr. and Mrs. BOXER):
~ S. 1237. A bill to improve the administra- States Code, to require contracting officers fectiveness of medically innportant
By .Mr. WYDEN · (for himself and Ms. BLUMENTHAL):· S. 1256. A bill to amend the Federal Food,
MURKOWSKI) (by request): S. 1246. A bill to. amend title 10, United Drug, and Cosmetic Act to p.reserve the ef-
tion of programs in the insular areas, and for to consider information regarding domestic antimicrobials used in the treatment of 41
other purposes; to the Committee on EnergY employment before awarding a Federal de- human and animal diseases; to the Com-
and Natural Resources. fense contract, and for other purposes; to the mittee on Health, Education, Labor, and
By Mr. REED (for himself, Mrs. HAGAN, committee on Armed Services. Pensions.
Mr. FRANKEN, Mr. HARKIN, Ms. STA- By Mr. REED: ' By Mr. ROBERTS:
BENOW, MS. WARREN, Mrs. MURRAY, S. 1247. A bill to improve and enhance re- S. 1257. A bill to protect financial trans- 1
Mr. REID, Ms. L-ANDRIBu, Mr. PRYOR, search and programs on childhood cancer actions in the United States from enforce- '
Mr. DuRBIN, Mr. WHITEHOUSE, Mr. survivorship, and for other purposes; to the ment of certain excise taxes imposed by any i
UDALL Of New Mexico, Ms. KLO- Committee on Health, Education, Labor, and foreign government, and for other purposes;
BucHAR, Mr. BROWN, Mr. MENENDEZ, Pensions. to the Committee on Finance. 4
-
..
June 27, 2013 CONGRESSIONAL RECORD- SENATE S5497
(6) The commissioner of the office of motor iff's Office create a new separate program, related agencies for the fiscal year ending
vehicles of the Department of Public Safety specifically for court-ordered juveniles; and September 30, 2014, and for other purposes
and.Corrections, or his designee. Whereas, in December 2012, the Sheriff's (Rept. No. 113-47).
(7) Each member of the Louisiana congres- Office submitted a JABG application for the By Mr. JOHNSON of South Dakota, from
sional delegation or the member's designee; Bossier Youth Diversion Program which was - the Committee on Appropriations, with an
and be it further created similar to the Bossier Sheriffs amendment in the nature of a substitute:
kesolued, That the members of this task Young Marines Program, while also incor- H.R. 2216. A bill making appropriations for
force shall serve without comp6nsation, ex- porating "Character Counts" and "The military construction, the Department of
cept per diem or expenses reimbursement to Great Body Shop", as recommended by Veterans Affairs, and related agencies for
which they may be individually entitled as LCLE staff, for courb-ordered juveniles only; the fiscal year ending September 30, 2014, and
members of the organizations they rep- and for other purposes (Rept. No. 113-48).
resent; and be it further Whereas, the Sheriffs Office was advised By Mr. WYDEN, from the Committee on
Resolved, That the president of the. Senate by the LCLE thai pursuant to the direction Energy and Natural ' Resources, without
or his designee shall act as chairman of the of the United States Department of Justice, amendment:
task force and the speaker of the House of Office for Civil i Rights, the program can S. 27. A bill to clarify authority granted
Representatives or his designee shall act as "NOT include pr,yer as part of the Diversion under the Act enti~d "An Act to define the
vice chairman; and be it further program. Any prayer, even if voluntary, exterior bound~Ff of the Uintah and Ouray
Resolved, That a majority of the total needs to be separate in time or location from Indian Reservation in the State of Utah, and
membership shall constitute a quorum of the the Diversion PIbgrain activities."; and for other p oses" (Rept. No. 113-49).
task force and any official action by the task Whereas, on F*bruary 22,2013, the Sheriff's S. 59. ill to designate a Distinguished
' force shall require an affirmative vote of a Office responded by email to the LCLE, "In Flyin Cross National Memoriil at .the
majority of the quorum present and voting; response to the tprayer issue, the time that Mar Field Air Museum in Riverside, Cali-
and be it further was offered for drayer was optional for all of f ia (Rept. No. 113-50).
By Mr. WYDEN, from the Committee on
Resolved, That the names of the members the kids. It was led by any child that wanted
chosen or designated as provided herein shall to volunteer and} if there wasn't a volunte , Energy and Natural Resources, Ifith an
amendment:
be submitted to the chairman of the task it became a few moments of.silence."; an S. 156. A bill to allow for the haryest of
force not later than August 15, 2013, and that Whereas, on {March 7, 2013, LCL re- gull eggs by the Huna Tlingit people within
the chairman shall thereafter call the first sponded, at thi ditection of the nited Glacier Bay National Park in the State of
meeting of the task force not later than Sep_ States Departm¢nt of Justice, re sting an· Alaska (Rept. No. 113-51)
tember 15, 2013; and be it further official letter, '1 signed by e Sheriff, By Mr. WYDEN, from the Committee on
Resolved, That the task force shall meet as which states thdt there will b o prayer ac- Energy and Natural Resources, without
necessary, shall submit a written report of tivities conduc*d during t Diversion pro- arnendment:
its findings and recommendations to the gram . . ." and that the L E ". . . will not S. 211. A bill to amend certain definitions
chairmen of the Senate and House commit- be able to issue~an awar until this letter is contained in the Provo River Project Trans-
tees on transportation, highways, and public received."; and fer Act for purposes of clarifying certain
works not later than sixty days prior to the - Whereas, at that me, the Sheriff with- property descriptions, and for other purposes
2014 Regular Session of the Legislature, and drew the grant reg st; and (Rept. No. 113-52).
shall terminate upon submission of its re- - Whereas, on ]0 ruary 6, 2013, the Bossier S. 225. A bill to authorize the Secretary of
port; and be it further
Parish Sheoff's' ffice submitted a Program the Interior to conduct a study of alter-
Plan Workshe requesting the one-time Ju- natives for commemorating and interpreting
Resolved, That a copy of this Resolution
venile Justi Delinquency Prevention funds the role of the Buffalo Soldiers in the early
shall be'transmitted to the deputy secretary
of public safety services of the Department available f th~ Bossier Sherifrs Young Ma- years of the National Parks, and for other
of Public Safety and Corrections, the com- rines Pro ram and was denied upon the same_ purposes (Rept. No. 113-53).
rnissioner of the office of Inotor vehicles of ground nvolvink prayer activities; and By Mr. WYDEN, from the Committee on
the Department of Public Safety and Correc- Whe eas, at this time, the Sheriff's Officd Energy and Natural' Resources, with. an
en divested of funding by the LCLE for amendment in the nature of a substitute and
tions, and each member of Louisiana's con- bojh the Bossie* Sheriff's Young Marines an amendment to the title:
gressional delegation.
POM-43. A resolution adopted by the Sen- 5~ogram and thd Bossier Youth Diversion S. 241. A bill to establish the Rio Grande
Nrogram due to Brayer and the mention of del Norte National Conservation Area in the
ate of the State of Louisiana urging and re- / God in the prograihs: Now, therefore, be it State of New Mexico, and for other purposes
questing the Louisiana congressional delega/ Resolved, That t?ke members of the Lou- (Rept. No. 113-54).
tion to review the basis for the discontini- isiana congressionAl' delegation are hereby By Mr. WYDEN, from the Committee on
ance of funding of the Bossier Sher)*s urged and request&d to review with the Energy and Natural Resources, with an
Young Marina Program through a Jlgenile United States Depdtment of Justice, Office amendment:
Accountability Block Grant with the,wnited of Civil Rights, the, ~asis for the discontinu- S. 256. A bill to amend Public Law 93-435
Stat68 Department of Justice, Office,of Civil ance of funding ofi~ the Bossier Sherifrs with respect to the Northern Mariana Is-
Rights; to the Committee on the Judlciary. Young Marines Progr*m with a Juvenile Ac_ lands, providing parity with Guam, the Vir-
SENATE RESOLUTION NO. 1~ - countability Block Fir~nt; and be it further gin Islands, and American Samoa (Rept.' No.
Whereas, since 2002, the Bgddier Parish -Resolved, That a cop4 of this Resolution be 113-55).
Sheriffs Office has successfully administered transmitted to each viember of the Lou- By Mr. WYDEN, from the Committee on
the Bossier Sheriff's Young/ Marines Pro- isiana congressional delegation, the gov_ Energy and Natural Resources, without
gram, a program sanctioned by the United ernor, the Louisiana Cor~lmission on Law En- amendmenti
States Marine Corps which provides commu- forcement, and the Bosshr Parish Sheriff. S. 284. A bill to transfer certain facilities,
easements, and rights-6f-way to Fort Sum-
nity-based physical education programs that _ -
are designed to teach yodng men and women, her Irrigation District, New Mexico (Rept.
REPORTS OF COMMITTEES
No. 113-56).
ages 8 to 18, respect fof their bodies through By Mr. WYDEN, from the Committee on
physical fitness, which in return will instill The following reports'~f committees Energy and Natural Resources, with amend-
resistance to the /temptations of illegal were subrnitted: ments:
p drugs, alcohol andtobacco use; and - By Mrs. MURRAY, from tha~Committee on S. 305. A bill to authorize the acquisition of
~- Whereas, the fodus of the program is char- Appropriations, without amendment: core battlefield land at Champion Hill, Port
acter-building, a,tong with core values of dis- S. 1243. An original bill maki~g appropria- Gibson, and Raymond for addition to Vicks-
cipline, leadership, teamwork and commit- tions for the Departments of Tra»portation, burg National Military Park (Rept. No. 113-
ment and instihs into the participants the and Housing and Urban Developm&nt, and re- 57).
ideals of honesty, integrity and respect and lated agencies for the fiscal year ending Sep- By Mr. WYDEN, from the Committee ·on
at-risk youth developing goals for academic tember 30, 2014, and for. other purposes (Rept. Energy and Natural Resources, without
success; and No. 113-45). i amendment:
Whereas, the program· has been partially By Mr. PRYOR, from the Committee on S. 312. A bill to adjust the boundary of the
funded by the Juvenile Accountability Block Appropriations, without amendment: Carson National Forest, New Mexico (Rept.
Grant (JABG) provided by the Louisiana S. 1244. An original bill making appropria- No. 113-58).
Commission on Law Enforcement (LCLE); tions for Agriculture, Rural Development, S. 342. A bill to designate the Pine Forest
and Food and Drug Administration, and Related Range Wilderness area in Humboldt County,
Whereas, because of the success of the pro- Agencies programs for the fiscal year ending Nevada (Rept. No. 113-59).
gram, local judges started sentencing court- September '30.2014, and for other purposes S. 349. A bill to amend the Wild and Scenic
E ordered juveniles to the program as a diver- (Rept. No, 113-46). Rivers Act to designate a segment of the
sion from jail time; h6wever, the Young Ma- By Mrs. FEINSTEIN, from the Committee Beaver, Chipuxet, Queen, Wood, and
rines Program was· never intended to be a on Appropriations, without amendment: Pawcatuck Rivers in the States of Con-
_ "diversion" program and the LCLE staff has S. 1245. An original bill making appropria- necticut and Rhode Island for study for po-
recommended that the Bossier Parish Sher- tions for energy and water development and tential addition t6 the National Wild and