[Congressional Record (Bound Edition), Volume 154 (2008), Part 6] [Extensions of Remarks] [Pages 8088-8089] [From the U.S. Government Publishing Office, www.gpo.gov]INTRODUCTION OF THE JOINT GUAM PROJECTS OVERSIGHT ACT ______ HON. MADELEINE Z. BORDALLO of guam in the house of representatives Wednesday, May 7, 2008 Ms. BORDALLO. Madam Speaker, today I have introduced H.R. 5931, the Joint Guam Projects Oversight Act, to ensure appropriate implementation and oversight of the realignment of military installations and the relocation of military personnel on Guam. I am joined by my colleague from Hawaii, Mr. Abercrombie, in introducing this legislation. The rebasing of military forces from Okinawa, Japan to Guam is a component of the United States-Japan Alliance Transformation and Realignment Agreement signed in May 2006. Additionally, planned for Guam is the reassignment of a significant number of airmen from Korea, the standing-up of a U.S. Army air defense battalion and improvements to Naval Base Guam. These major realignments present significant challenges and opportunities for the community on Guam. Over the next 6 years the Department of Defense and the Government of Japan plan to spend over $10 billion to support the realignment of units of the III Marine Expeditionary Force from Okinawa to Guam and an additional $3 billion on upgrades and improvements at Andersen Air Force Base. The Government of Japan has pledged to contribute over $6 billion to support the rebasing of units from Okinawa to Guam through direct contributions to the United States Treasury and through Special Purpose Entities (SPEs). Funding of some projects by a foreign government poses significant challenges to Congress's right and responsibility to oversee this realignment. H.R. 5931 creates a new account for the realignment to Guam. The account entitled the ``Guam Defense Policy Review Initiative Account'' would help the Department of Defense manage its expenditures on projects associated with the realignment of military forces on Guam. This legislation also addresses the unique nature of the SPEs. Department of Defense officials indicate that SPEs are intended to operate in a manner similar to other public-private ventures that currently exist with respect to other projects in the United States. Our legislation expresses a Sense of Congress that the SPEs should operate as publicprivate ventures. It also encourages the Department of Defense to ensure that all construction projects on Guam, operated and maintained by SPEs, should meet U.S. standards. It also encourages the Department of Defense along with the Government of Japan to consider utilizing the SPEs for projects other than military housing and utility infrastructure improvements. Moreover, if the SPEs are utilized to improve utilities on Guam the improvements must be made to the overall grid operated by the Government of Guam and not solely for the benefit of military installations. Improvements to the overall utility infrastructure on Guam will be more cost-effective. The $13 billion investment by the Department of Defense and the Government of Japan is intended primarily for military infrastructure. However, the Government of Guam estimates that additional funds will be needed to improve civilian infrastructure, including schools, public safety, water, wastewater, utility, and road improvements to accommodate the additional population on the island. As we near the end of the Bush Administration's term it is important that the Federal Government work closely with the Government of Guam to develop Memoranda of Understanding, MOU, to ensure Federal commitments that Guam can rely on. The MOUs can be facilitated by utilizing the Interagency Group on the Insular Areas, IGIA, established by executive order of the President. The legislation includes a Sense of Congress that these MOUs must be developed to ensure that the build-up is a success. In reference to planning, the legislation also authorizes the Office of Economic Adjustment, OEA, within the Department of Defense to provide planning funds to the Commonwealth of the Northern Mariana, Islands, CNMI. This will support appropriate planning by the Government of the CNMI for increases in population and military activity resultant from the establishment and utilization of training ranges in the CNMI. Currently, the OEA lacks the authority in law to provide planning funds to the CNMI and this provision would correct this omission in law. It is important that military construction projects on Guam be energy friendly and meet strong environmental design standards. The legislation requires the Department of Defense to meet Leadership in Energy and Environmental Design, LEED, silver rating standards. LEED standards have been developed and are approved by the U.S. Green Building Council. The legislation also requires the Secretary of Defense to report back to Congress on establishing a goal for energy renewability on Guam. The major construction effort supporting the build-up should be conducted in the most environmentally friendly and energy efficient manner as possible. The legislation also prioritizes the small business community in this military build-up. [[Page 8089]] The bill contains a provision that would limit the Historically Underutilized Business Zone, HUB Zone, preference for work performed in excess of 150 miles from the primary office location of a HUBZone firm. This provision would ensure that construction projects benefit the local businesses and economy. Moreover, the legislation would authorize the establishment of a Procurement Technical Assistance Center, PTAC, on Guam to help local small businesses navigate the complexities and bureaucracy of Department of Defense contracting. Finally, the legislation will require all contractors to certify their compliance with local tax and licensing requirements. The provision grants the contracting agent within the Department of Defense the ability to withhold final payments on contracts if the contractor is found to be delinquent in paying their local tax obligations. This provision is important to ensuring the Government of Guam will be able to collect revenue from this build-up and apply such revenue to make needed improvements to civilian infrastructure. The military build-up on Guam presents many opportunities and many challenges. I firmly believe that the legislation I have introduced today with Mr. Abercrombie will help facilitate congressional oversight and accountability of build-up activities as well as provide additional tools for the local government and businesses to make this build-up a success. This legislation addresses issues important to the people of Guam and would help to ensure the success of the military build-up both for the Department of Defense and for the people of Guam. ____________________