Before the

SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES


 01 MAY 2008

Chairman and members of the Committee, I am pleased to appear before you today and have this opportunity to provide you an overview of the Department’s effort to relocate Marines and their dependents from Okinawa to Guam, the effects this effort will have throughout the region, and what we are doing to carefully plan the realignment effort.  The program will require support from multiple partners including the Government of Guam, Commonwealth of the Northern Mariana Islands, the Government of Japan, our combined Services, and the Federal government.  

It is important for all of us to understand that this major force realignment project is vital to our strategic posture in the Pacific theatre and the security of our nation. 

COST-SHARING AGREEMENT

The financial aspect of the Marine move from Okinawa to Guam involves a cost-sharing arrangement between the U.S. Government (USG) and the Government of Japan (GOJ).  Recognizing that Japan will also benefit from rapid relocation, which will allow our forces to move to less densely populated areas of Okinawa, the GOJ has agreed to bear a substantive amount of the costs for the Marine move from Okinawa to Guam.

•      Japan will provide up to $6.09 billion of the total $10.27 billion up-front construction cost for the realignment, consisting of:

o    $2.8 billion in direct payments to the U.S. for operational and support infrastructures
o    $3.29 billion in equity investments and loans to special purpose entities that will provide housing and utilities

•      The United States is responsible for the remaining $4.18 billion and any additional costs.


STRATEGIC BENEFITS OF GUAM

Guam’s unique location makes it a strategic choice to support the realignment of Pacific forces. It is able to provide a position for carrier group maintenance and re-supply.  Basing Marine Corps forces on Guam makes strategic sense for several reasons:  it enhances the survivability of our forces by dispersing them; it spreads our force to better cover security cooperation and contingency response requirements for the vast Pacific region; and it positions forces on U.S. territory, removing the requirement to coordinate operational and training issues with a host nation.

Increasing U.S. military capabilities on Guam will fully leverage transformational advancements of the joint force and will create a central hub for the regional ISR/Strike force capability.  As envisioned, Guam will also have the infrastructure necessary and in place for agile and responsive employment of assigned or transient forces; however, adequate strategic lift will be a key requirement for rapid, effective deployment of forces from or through Guam.

Transformation from the USMC’s current Okinawa-heavy posture in the western Pacific to a more balanced Okinawa-Guam posture better positions the Marine Corps to conduct regular security cooperation activities with a broader array of partner nations.  It also ensures that Marine Corps forces are located closer to a larger number of potential contingency areas than is currently the case.    It is near enough to contingency areas and potential threats to provide peace and stability to employ rapid response capabilities, promote combined and joint training exercises with multiple U.S. allies, and to implement the requirements of treaties.
 
PRE-EXISTING CONDITIONS ON GUAM AFFECTING THE REALIGNMENT PROGRAM

The impacts of relocating approximately 8,000 Marines and 9,000 family members, plus the movement of other forces and capabilities to Guam, will be significant.  The DoD population on Guam is expected to grow from its current state of approximately 14,000 to nearly 40,000 in a five year period.  With Guam’s total population of approximately 171,000, including DoD members and their families, the increase associated with the rebasing of Marine Corps forces is significant.  If we consider the additional population impact of associated contractors, base support, and the service industry personnel, Guam’s population growth could well exceed 25 percent in a very short period.  Few mainland communities would be able to absorb that increase to their population in such a short period of time.  For an island community, the impacts are magnified.

The addition of Marine Corps personnel and their families is shedding light on the pre-existing infrastructure and social service challenges on Guam. Utilities and public works, health care, education and other areas have lacked significant attention over the years and may now directly affect or be affected by the relocation effort.  Significant issues can be broadly categorized into the categories of environmental, socio-economic, infrastructure, health and human services, and labor/workforce.

To meet the planned timelines, improvements for the port and major roads will be needed to directly support construction.  The port and roads will transport the vast majority of the materials and supplies utilized during the construction phase.  Delays in infrastructure improvements could impact the ability to complete the program on budget and on schedule. Upgrades to transportation systems will also support the long-term need of handling an increased throughput of supplies to support the island’s larger post-construction population.

In addition to infrastructure needs, up to 15,000 workers will be needed to complete the planned construction by 2014.  The qualified, available workforce on Guam is limited. Training programs are needed to prepare interested workers for upcoming employment opportunities. The prevailing wage rate on the island is not expected to attract significant numbers of workers from the continental U.S. or Hawaii.  Therefore, a sizable number of workers will need to come from neighboring foreign countries. These workers will require H2B visas, making the recent Senate-approved legislation to remove the current annual H2B visa cap for workers coming to Guam and the Mariana Islands critical to the program’s success.


FEDERAL EFFORTS TO SUPPORT GUAM’S REQUIREMENTS

Close coordination with the Government of Guam (GovGuam) is critical to correctly identify areas requiring federal attention and support.  DoD officials meet regularly with representatives from GovGuam agencies who comprise the Civilian-Military Task Force.  We also regularly meet with key GovGuam officials to coordinate the development of the Guam Joint Military Master Plan with Guam’s own Master Plan to facilitate compatible land use.  GovGuam representatives directly participate in DoD planning efforts, and have become a key element in the planning process.  As part of the process required by the National Environmental Policy Act (NEPA), public scoping meetings were held last spring with over 900 comments received from the community.  Future public outreach sessions are being planned to ensure the community is updated and aware of environmental, socioeconomic and cultural impacts, and that we are considering these impacts.  All of this data is helping DoD and other federal agencies determine how we can best support the community and the military force realignment.

The Joint Guam Program Office and the Department of Interior’s Office of Insular Affairs created and now lead a federal Interagency Task Force (IATF).  Throughout, JGPO and DOI/OIA have been raising awareness across the Federal government of the need to address the systemic challenges to support both the construction effort and the long term impact of stationing additional forces in Guam.  The IATF categorized issues into five working groups along the broad categories mentioned above (environmental, socio-economic, infrastructure, labor, and health and human services).  Representatives from key federal agencies such as the Departments of Labor, Health and Human Services, State, Agriculture, Transportation, and Homeland Security; the Environmental Protection Agency; Office of Management and Budget and others meet regularly with the intent to identify Guam’s requirements that extend beyond DoD’s responsibilities and authorities and to match these requirements with appropriate Federal resources.  GovGuam representatives, including Governor Felix Camacho and Lieutenant Governor Mike Cruz regularly participate in each of the five working groups.  The IATF has held three meetings to date and each working group meets on a regular basis.

The IATF has developed 10 core issues impacting the civilian population on Guam that need to be addressed:

•    Strengthen healthcare and education workforce
•    Strengthen public safety workforce and address equipment shortages
•    Address personnel and equipment shortages at key licensing and permitting agencies
•    Conduct future housing assessments
•    Conduct comprehensive labor needs assessment
•    Perform workforce training
•    Make capital improvements to healthcare and education facilities
•    Make capital improvements to seaport
•    Make capital improvements to public utilities
•    Make capital improvements to roadway system

In those areas in which DoD is limited in its ability to financially support “outside-the-fence” issues in Guam, Federal Agencies may be positioned to support other areas of improvement. The 10 previously mentioned core issues demonstrate how critically important Federal agency assistance is to both DoD and GovGuam.  As costs and responsibilities for these improvements are decided upon, prioritized funding requirements from Federal Agencies will be key for the creation of symbiotic solutions to the military realignment challenges.
 
Federal support for “outside-the-fence” issues are essential to both assist DoD as it delivers required USMC capabilities to the PACOM commander and help Guam adjust to a significant change within their population.

RESULTS TO DATE OF INTERAGENCY SUPPORT

As a result of these integrated efforts, we are proud to report that DoD’s Office of Economic Adjustment (OEA) has thus far provided nearly $1.7 million in grants to GovGuam to support key planning and impact studies.  As part of its ongoing technical and financial assistance, OEA also agreed to incorporate a financial impact analysis that will be tailored to GovGuam’s specific needs and phased in a manner that will reflect DoD’s environmental and socio-economic estimates. Additionally, OEA is about to commence community planning support and assistance to GovGuam through a Guam Compatibility Sustainability Study (CSS).  The goal of the CSS is to support and assist GovGuam's management and planning capabilities, including land use planning. 

Another outcome is the partnership between GovGuam, the Port Authority of Guam and the Department of Transportation’s Maritime Administration.  These entities are now working together to achieve GovGuam’s goal to support the military realignment with the ultimate vision of becoming a key intermodal transportation hub in the Pacific region. 

Also a result of the interagency meetings, the Departments of Labor, State and Interior are working to develop training programs designed to equip residents with the appropriate skills sets that will make them qualified to support the construction program and post-construction opportunities.

STATUS OF PLANNING AND STUDIES

We continue the studies necessary for preparing an Environmental Impact Statement (EIS) in compliance with the NEPA.  The EIS will address the movement of Marine Corps forces from Okinawa to Guam as well as Navy efforts to construct a transient nuclear aircraft carrier-capable pier at Apra Harbor and Army intentions to locate a ballistic missile defense task force on the island.  A draft EIS is expected in spring 2009, the final EIS in December 2009, and a Record of Decision (ROD) in January 2010. 

In parallel with the EIS efforts, we are developing a Guam Joint Military Master Plan (GJMMP).  The GJMMP addresses the realignment of Marine Corps forces in the context of other DoD actions on Guam, such as plans to increase intelligence, surveillance, and reconnaissance capabilities and transient forces at Andersen Air Force Base; an increased Navy submarine presence; and the Army effort noted above.  A working level draft of the GJMMP will be complete this summer.

CONCLUSION

DoD continues to integrate the military, GovGuam, private sector and Federal agencies so existing systemic issues and upcoming challenges created by the anticipated population increase are addressed.

Comprehensive support by all federal agencies and Congress is needed to turn this massive effort into a mutual win for the military and the community.  We appreciate the leadership from the Department of Interior and the support and attention from participating federal agencies.  Their continued commitment is critical to completing the program and supporting the people of Guam. 

Thank you for your continued support and the opportunity to testify before you today.