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STATEMENT OF

MR. DAVID BICE, EXECUTIVE DIRECTOR

JOINT GUAM PROGRAM OFFICE

ASSISTANT SECRETARY OF THE NAVY

(INSTALLATIONS AND ENVIRONMENT)

Before the

SENATE COMMITTEE ON ENERGY AND NATURAL RESOURCES

01 MAY 2008

Not for publication until

Released by the

Senate Committee on Energy

and Natural Resources

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:

    -   \$2.8 billion in direct payments to the U.S. for operational and
        support infrastructures

    -   \$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.

![](media/image1.wmf)

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.