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THE U.S. MILITARY BUILDUP 

ON GUAM AND CHALLENGES 

FACING THE COMMUNITY

OVERSIGHT FIELD HEARING

BEFORE THE

SUBCOMMITTEE ON INSULAR AFFAIRS

OF THE

COMMITTEE ON NATURAL RESOURCES 

U.S. HOUSE OF REPRESENTATIVES

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

Monday, August 13, 2007, in Mangilao, Guam

Serial No. 110-40

Printed for the use of the Committee on Natural Resources

(

Available via the World Wide Web: http://www.gpoaccess.gov/congress/index.html 

or 

Committee address: http://resourcescommittee.house.gov 

(II)

COMMITTEE ON NATURAL RESOURCES 

NICK J. RAHALL II, West Virginia, Chairman 

DON YOUNG, Alaska, Ranking Republican Member

Dale E. Kildee, Michigan 

Eni F.H. Faleomavaega, American Samoa 

Neil Abercrombie, Hawaii 

Solomon P. Ortiz, Texas 

Frank Pallone, Jr., New Jersey 

Donna M. Christensen, Virgin Islands 

Grace F. Napolitano, California 

Rush D. Holt, New Jersey 

Rau ́l M. Grijalva, Arizona 

Madeleine Z. Bordallo, Guam 

Jim Costa, California 

Dan Boren, Oklahoma 

John P. Sarbanes, Maryland 

George Miller, California 

Edward J. Markey, Massachusetts 

Peter A. DeFazio, Oregon 

Maurice D. Hinchey, New York 

Patrick J. Kennedy, Rhode Island 

Ron Kind, Wisconsin 

Lois Capps, California 

Jay Inslee, Washington 

Mark Udall, Colorado 

Joe Baca, California 

Hilda L. Solis, California 

Stephanie Herseth Sandlin, South Dakota 

Heath Shuler, North Carolina 

Jim Saxton, New Jersey 

Elton Gallegly, California 

John J. Duncan, Jr., Tennessee 

Wayne T. Gilchrest, Maryland 

Chris Cannon, Utah 

Thomas G. Tancredo, Colorado 

Jeff Flake, Arizona 

Stevan Pearce, New Mexico 

Henry E. Brown, Jr., South Carolina 

Luis G. Fortun ̃ o, Puerto Rico 

Cathy McMorris Rodgers, Washington 

Bobby Jindal, Louisiana 

Louie Gohmert, Texas 

Tom Cole, Oklahoma 

Rob Bishop, Utah 

Bill Shuster, Pennsylvania 

Dean Heller, Nevada 

Bill Sali, Idaho 

Doug Lamborn, Colorado 

Mary Fallin, Oklahoma 

Kevin McCarthy, California

James H. Zoia, Chief of Staff 

Jeffrey P. Petrich, Chief Counsel 

Lloyd Jones, Republican Staff Director 

Lisa Pittman, Republican Chief Counsel 

SUBCOMMITTEE ON INSULAR AFFAIRS 

DONNA M. CHRISTENSEN, Virgin Islands, Chairwoman 

LUIS G. FORTUN ̃ O, Puerto Rico, Ranking Republican Member

Eni F.H. Faleomavaega, American Samoa 

Rau ́l M. Grijalva, Arizona 

Madeleine Z. Bordallo, Guam 

Nick J. Rahall II, West Virginia, ex officio 

Elton Gallegly, California 

Jeff Flake, Arizona 

Don Young, Alaska, ex officio 

(III)

CONTENTS 

Page

Hearing held on Monday, August 13, 2007 ........................................................... 1

Statement of Members: 

Bordallo, Hon. Madeleine Z., a Delegate in Congress from Guam ............... 4

Prepared statement of ............................................................................... 9 

Christensen, Hon. Donna M., a Delegate in Congress from the Virgin 

Islands ............................................................................................................ 1

Prepared statement of ............................................................................... 3

Statement of Witnesses: 

Bice, David F., Major General (Retired) USMC, Executive Director, Joint 

Guam Program Office ................................................................................... 17

Prepared statement of ............................................................................... 19

Camacho, Hon. Felix P., Governor of Guam .................................................. 37

Prepared statement of ............................................................................... 39

Cohen, Hon. David B., Deputy Assistant Secretary for Insular Affairs, 

U.S. Department of the Interior .................................................................. 13

Prepared statement of ............................................................................... 15

Cristobal, Hon. Hope A., Former Senator, Guam Legislature ...................... 68

Prepared statement of ............................................................................... 71

Leberer, Trina, Marine Conservation Coordinator, The Nature 

Conservancy, Micronesia Program .............................................................. 80

Prepared statement of ............................................................................... 82

Lujan, Kenneth Q., Guam Branch Manager, U.S. Small Business 

Administration .............................................................................................. 22

Prepared statement of ............................................................................... 24

Robertson, John M., P.E., Chairman, Government, Military, and Labor 

Affairs Committee, Guam Contractors Association ................................... 89

Prepared statement of ............................................................................... 91

Ruder, Stephen C., Chairman of the Board, Guam Chamber of 

Commerce ...................................................................................................... 75

Prepared statement of ............................................................................... 77

Sanchez, Simon A., II, Chairman, Consolidated Commission on Utilities .. 49

Prepared statement of ............................................................................... 50

San Nicolas, Benny P., Chairman, Southern Soil & Water Conservation 

District ........................................................................................................... 72

Prepared statement of ............................................................................... 73

Savares, Hon. Melissa, Mayor of Dededo, Guam, President, Mayor’s 

Council of Guam ........................................................................................... 46

Prepared statement of ............................................................................... 48

Won Pat, Hon. Judith T., Minority Leader, 29th Legislature of Guam ....... 41

Prepared statement of ............................................................................... 43

Additional materials supplied: 

List of individuals submitting statements for the record .............................. 12

(1)

OVERSIGHT FIELD HEARING ON ‘‘THE

U.S. MILITARY BUILDUP ON GUAM AND 

CHALLENGES FACING THE COMMUNITY.’’

Monday, August 13, 2007

U.S. House of Representatives 

Subcommittee on Insular Affairs 

Committee on Natural Resources 

Mangilao, Guam 

The Subcommittee met, pursuant to call, at 10:10 a.m., at the 

College of Liberal Arts and Social Sciences Lecture Hall, University 

of Guam, Mangilao, Guam, Hon. Donna Christensen [Chairwoman 

of the Subcommittee] presiding. 

Present: Delegates Christensen and Bordallo. 

STATEMENT OF THE HON. DONNA M. CHRISTENSEN,

A DELEGATE IN CONGRESS FROM THE VIRGIN ISLANDS 

Mrs. CHRISTENSEN. The Oversight Field Hearing by the Subcommittee on Insular Affairs will come to order. The Subcommittee 

is meeting today to hear testimony on the ‘‘U.S. Military Buildup 

on Guam and Challenges Facing the Community.’’

Good morning and Hafa Adai. Let me begin by welcoming the 

First Lady and by thanking the University of Guam and its President, Harold Allen, for hosting us today. There’s no better place to 

conduct a hearing such as this than in a public university, a place 

that promotes not only education and the free exchange of ideas, 

but also works to create the kind of strong community that we are 

talking about today. 

The staff and faculty have been wonderful to work with and we 

really appreciate all of the assistance that they’ve provided to us 

in helping to put this hearing together. It is truly an honor for me 

to be on this beautiful island of Guam where America’s day begins 

and where our nation’s westernmost border also begins. 

As our country better prepares to protect our people and our 

homeland, we are all challenged by change. Nowhere though is a 

challenge greater than on Guam, as we look to the potential military buildup plan for this island paradise, this piece of America 

closest to Asia. It is therefore fortuitous that there is a Subcommittee on Insular Affairs which was re-established by the 

House Natural Resources Full Committee Chairman, Nick Rahall, 

at the beginning of this 110th Congress. 

2

I believe Chairman Rahall recognized that our U.S. territories 

and also those island nations freely associated with the United 

States have great challenges in front of us today. Developing and 

diversifying economies, preserving culture and language, protecting 

the environment, resolving political status, these issues are not 

new, nor are they exclusive to any one territory. They are issues 

that have no immediate solution, issues that require time, energy, 

political will power, debate, deliberation, and compromise to reach 

resolution. 

We are here this morning because an additional set of issues has 

presented itself in the past few years. It is one that is exclusive to 

Guam, as there is no other territory or state in our union which 

has undergone what Guam could potentially undergo if a final decision is made to buildup the military presence here in Guam as has 

been projected. 

The Subcommittee is here with you on Guam because we are prepared to be your partners on this path. As the Chair of this subcommittee and as a representative of your sister territory in the 

Caribbean, I want to be sure that we are engaged, and that military planners and your leaders are aware that we are sensitive to 

the concerns which will be raised throughout this process. We are 

prepared to see the challenges become opportunities, that concerns 

are replaced with confidence, and that obstacles are overcome with 

advocacy. 

Along with me today is, of course, your own delegate, The Honorable Madeleine Bordallo. She and I have a very strong relationship 

and it is because of her determination that we begin this step with 

you today. In Congress, she has been steadfast in representing the 

interest of the people of Guam. It is because of her that I was 

happy to take on your fight and revisiting the issue of providing 

equity to Guam for war claims resulting from the island’s World 

War II occupation. It was a fight with an overwhelming result as 

the House of Representatives passed it by more than a two-thirds 

majority in favor of the Guam World War II Loyalty Recognition 

Act. I continue and I will continue to work with Ms. Bordallo to 

have this Senate act on her legislation because the claims should 

be revisited and equity restored. 

During the past few days of my visit here, I’ve begun to get a 

good sense of what the big military picture is and how the plans 

for Guam, and now in their early stages, are beginning to take 

shape. We have also heard from many different sectors of the 

Guam community. Many are hopeful and positive even in the midst 

of uncertainty. The questions run the gamut; infrastructure, 

schools, business, culture, society, healthcare, roads, housing, labor. 

These are all very fair and very appropriate concerns that any community would have. We have the opportunity to discuss these today 

and Congresswoman Bordallo, of course, is going to provide another 

opportunity on Thursday at her town meeting, and I hope that 

many who would have wanted to testify today, but who we could 

not accommodate, and those who are testifying by their protest outside, will take the opportunity to make their voices heard on 

Thursday evening. 

So, the challenge for now is twofold; determining the new role of 

Guam in defending our nation, and defining the Federal GovernVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
3

ment’s responsibility to the people of Guam as this role unfolds. 

The first can only be done by military planners and is driven by 

threats to our nation. Latter though, cannot be done without the 

input of the people of Guam. 

Today, we will be receiving testimony which will build upon the 

first impressions we’ve received, the meetings and the discussions 

we’ve already had. We will also begin to build the Congressional 

record on the military buildup and the possible impact on the Guamanian people. 

It is important to remember that we are only at the beginning 

of this process, which only the most optimistic project will really 

end in 2014. So, time is on all of our side. 

It is also important to remember that all of the right elements 

are here. All that is needed is a commitment to work collaboratively to make the buildup as a success that I know it can be. 

I want to welcome our witnesses. I want to welcome all and 

thank all who have provided us with information already, and all 

who are here with us in this auditorium today. 

[The prepared statement of Mrs. Christensen follows:]

Statement of The Honorable Donna Christensen, Chairwoman,

Subcommittee on Insular Affairs 

Good morning and Hafaa Adai. 

Let me begin by thanking the University of Guam and its President Harold Allen 

for hosting us today. There is no better place to conduct a hearing than at a Public 

University—a place that promotes not only education and a free exchange of ideas 

but also creates a strong community. The staff and faculty have been wonderful to 

work with and we truly appreciate all the assistance they have provided in helping 

to put this hearing together. 

It is truly an honor to be here on the beautiful island of Guam, where America’s 

day begins, and where our Nation’s westernmost border also begins. 

As our country better prepares to protect our people and our homeland we are 

all challenged by change. Nowhere though is the challenge greater than on Guam 

as we look to the potential military buildup planned for this island paradise—this 

piece of America closest to Asia. 

It is therefore fortuitous that there is a Subcommittee on Insular Affairs which 

was re-established by the House Natural Resources Full Committee Chairman Nick 

Rahall, at the beginning of the 110th Congress. I believe Chairman Rahall recognized that our U.S. territories, and also those island nations freely associated with 

the United States, have great challenges in front of them today. 

Developing and diversifying economies, preserving culture and language, protecting the environment, resolving political status—these issues are not new, nor 

are they exclusive to any one territory. They are issues that have no immediate solution and they require time, energy, political will power, debate, deliberation, and 

compromise to reach resolution. 

We are here this morning because an additional set of issues has presented itself 

in the past few years. It is one that is exclusive to Guam, as there is no other territory or State in our Union, which has undergone what Guam could potentially undergo if a final decision is made to buildup the military presence here on Guam. 

This Subcommittee is here, with you, on Guam because we are prepared to be 

your partners on this path. As the chair of this Subcommittee, and as a representative of your sister Territory in the Caribbean, I want to be sure that we are engaged 

and that military planners and your own leaders are aware that we are sensitive 

to the concerns which will be raised throughout this process. We are prepared to 

see that challenges become opportunities, concerns are replaced with confidence, 

and obstacles overcome with advocacy. 

Along with me today is your Delegate, Madeleine Bordallo. She and I have a 

strong relationship and it is because of her determination that we begin this step 

with you. In Congress she has been steadfast in representing the interests of the 

people of Guam. It is because of her that I was happy to take on your fight revisiting the issue of providing equity to Guam for war claims resulting from the island’s World War II occupation. It was a fight with an overwhelming result as the 

4

House of Representatives passed by more than a two-thirds majority in favor of the 

Guam World War II Loyalty Recognition Act. I continue to work with Ms. Bordallo 

to have the Senate act on her legislation because claims should be revisited and equity restored. 

During the past few days of my visit here, I have begun to get a good sense of 

what the big military picture is and how the plans for Guam are beginning to take 

shape. We have also heard from different sectors of the Guam community. Many 

are hopeful and positive though there is midst of uncertainty. The questions run the 

gamut—infrastructure, schools, business, culture, society, healthcare, roads, housing, labor—these are all very fair and appropriate concerns that any community 

would have. 

So, the challenge, for now, is twofold. Determining the new role of Guam in defending our Nation; and defining the Federal Government’s responsibility to the people of Guam as this determination unfolds. The first can only be done by military 

planners and driven by threats on our Nation; the latter cannot be done without 

the input of the people of Guam. 

Today we will be receiving testimony which will build upon those first impressions, and which will also begin to build the congressional record on the military 

buildup and the possible impact on the Guamanian people. 

It is important to remember that we are only at the beginning of a process which 

only the most optimistic project will end in 2014. So time is on all of our side. 

All of the right elements are here. All that is needed is a commitment to work 

collaboratively to make the buildup the success I know this can be. 

Mrs. CHRISTENSEN. And now, the Chair recognizes Congresswoman Madeleine Bordallo for any statement that she might have. 

STATEMENT OF THE HON. MADELEINE Z. BORDALLO,

A DELEGATE IN CONGRESS FROM GUAM 

Ms. BORDALLO. Good morning and Hafa Adai. First Lady 

Camacho, members of the Legislature, the Mayors, Dr. Allen, and 

the faculty of the University of Guam, thank you for allowing us 

to use the facility, our distinguished witnesses, ladies and gentlemen. 

Madam Chairwoman, I thank you for agreeing to hold this very 

important hearing today on Guam about the impending military 

buildup for our island. As you know, this hearing is very important 

to us, to my constituents, as it is the first Congressional hearing 

to be held in Guam in 24 years. It has been my firm belief that 

the military buildup on Guam will offer our community a unique 

opportunity to roll our economy and to improve our public works 

and infrastructure. 

The 2005 Integrated Global Presence and Basing Strategy from 

the Overseas Basing Commission, which was chartered by Congress, laid the groundwork for the rebasing of roughly 8,000 Marines from the 3rd Marine Expeditionary Force to Guam from Okinawa, Japan. The Overseas Basing Commission report reaffirmed 

a strategic importance of Guam in the region. By placing United 

States Armed Forces on Guam, it affords the Department of 

Defense the flexibility and the freedom of action to respond to regional threats in crises, while providing our island and our people 

additional security in the face of rising global threats. 

This very point of the strategic value of Guam has been underscored in Washington before Congress by many Defense analysts 

and leaders, including our immediate previous Secretary of Defense, The Honorable Donald Rumsfeld, who traveled to Guam in 

2003 to review for himself the opportunities for and the value of 

placing additional assets and personnel on our military bases. 

5

The strategic value of Guam was also emphasized by Governor 

Camacho, the Guam Chamber of Commerce, and myself before the 

BRAC Commission in 2005. And the recognition of this strategic 

value of Guam is a key reason why we now see renewed interest 

and investment from DOD in our military bases. 

I continue to believe and maintain that the BRAC closures in 

1990s were a mistake, including the closure of SRF, PWC, the redeployment of ships and aircraft based here, and the downsizing of 

NCTAMS. 

The Secretary of State, Dr. Condoleezza Rice, has declared 2007 

to be the Year of the Pacific. The United States is increasingly focusing on efforts in our region to increase stability, good governance, and economic development through closer political economic 

and cultural ties to our neighbors. Our island is central to these 

efforts. All of this has laid a foundation for renewed lateral defense 

alliance with our friend and ally, Japan, which has moved Guam 

into a unique and high-level focus inside the Pentagon. 

Secretary Rumsfeld reminded me on several occasions that the 

U.S. Military goes where we are wanted. Such sentiment is particularly relevant to the buildup for Guam. I have consistently 

maintained throughout my public career that the partnership we 

enjoy here on Guam with the U.S. Military is beneficial to us overall, and represents a key area which through mutual respect and 

cooperation we have and continued to grow our economy. My belief 

in this regard has only grown stronger over the years and been reenforced with the opportunities presented before us with this 

buildup. 

Although the size of the military buildup is substantial in terms 

of investment needed for infrastructure, the total number of military personnel that will be moving to our island is roughly the 

same as the total number of military personnel that were stationed 

on Guam during the 1980s and early 1990s. In fact, the 3rd Marine 

Expeditionary Force realignment is a homecoming for the same division of Marines that liberated our island from enemy occupation 

63 years ago. The Marines are returning to a community that respect and appreciate their selfless dedication in heroism. 

Many of our own sons and daughters have served and continue 

to serve proudly and honorably in the United States Armed Forces 

today. We welcome this move, just as we would expect other communities to welcome our sons and daughters on the bases in their 

communities. 

The United States Marine Corps and the Navy have had a long 

and storied history on Guam. It is this history that bounds our island community and our partners in the military together. The 

military buildup signals the beginning of a new chapter in the 

partnership between the residents of Guam and the United States 

Armed Services. 

Beyond the historic symbolism of the move, the military buildup 

offers our community and the Federal Government a unique opportunity to coordinate local and Federal resources to improve the 

overall infrastructure on our island, which is key to our economic 

growth and achieving an overall better quality of life for our families and military service personnel on Guam. Moreover, the defense 

alliance and agreement with the government of Japan will bring 

6

about increased military cooperation and training exercises on 

Guam. 

Guam welcomes these exercises that further strengthen the strategic partnership. Operation Valiant Shield is evident of the growing interest in hosting multilateral training exercises from Guam. 

These exercises translate into security for our island in the region, 

and into jobs and earnings for our businesses that will increase 

government revenues and enable infrastructure improvements. 

Moreover, even before the buildup begins in earnest, we are seeing the early fruits of economic prosperity. Media reports have 

shown that property values have risen by 300 percent over the past 

year. Rising property values means equity for the residents of 

Guam, and that translates into wealth. A well-planned, integrated 

and coordinated master plan for the buildup will ensure that all of 

our residents can benefit from future economic opportunities that 

will improve their quality of life without sacrificing our heritage 

and culture. 

The buildup also offers other areas for improving our quality of 

life. The increased military presence stands to bring about better 

veterans services. Two weeks ago, the Secretary of Veterans Affairs 

announced the approval of a $5.4 million clinic to provide veterans 

on Guam with access to a modern healthcare facility. This 

announcement is indicative of new services on the way for our 

veterans. 

Also, we can expect that there will be increased medical expertise 

at the Naval Hospital with growth in our island’s population. Residents of Guam will benefit from the increase of medical expertise 

on the island. I encourage the Department of Defense and the Government of Guam to review areas for increased cooperation between the Naval Hospital and GMH in light of the buildup. These 

opportunities will only come if local, Federal, and military leaders 

cooperate and integrate their planning. 

The military buildup on Guam has been described as difficult, 

unique, impossible, and doomed for failure. Well, I would beg to differ with such characterizations. Instead, I believe the military 

buildup presents our community with opportunities that we would 

be foolish to ignore. Yet, we would also be foolish to underestimate 

the challenges it presents. 

There is no question in my mind that we face many challenges, 

but I think all of us would prefer to be facing these challenges that 

are associated with growth rather than facing challenges associated 

with decline. We must be honest with ourselves and each other in 

this process. I prefer to be optimistic, but realistic. We must keep 

things in perspective if we are to succeed. 

The announcements and initial planning to date have generated 

senses of elation, anger, anxiety, but some view the buildup from 

a broad and balanced perspective. Others are concerned with 

certain angles and elements given their roles and standing in the 

community, past experiences or education, and professional 

background. 

This hearing, this morning, and the dialogue that will be continued after today, is meant to capture a wide range of views and concerns. Three panels have been organized today with witnesses representing a broad cross-section of our community. 

7

This hearing marks the beginning of our dialogue and will lay 

the foundation for a Congressional record on the buildup with focus 

on the civilian community and the concerns of our people. 

As Senator Pangelinan has stated, this buildup is an unprecedented move that we cannot afford to have addressed in a 

precedented way. It is an opportunity for the Federal Government 

and the Government of Guam to develop together innovative solutions to the challenges it presents. 

Since the establishment of a Joint Chiefs of Staff, the Department of Defense has been moving toward the creation of a truly 

joint or total force concept for all military forces. The Department 

of Defense has, with the Guam buildup, the unique opportunity to 

trail blaze a new era in the management of complex projects and 

to further its jointness approach beyond simply its own services. 

At the end of the day, the buildup of forces on Guam should be 

held as an example of how interagency cooperation and integration 

with civilian authorities can lead to successful outcomes. Cooperation and integration are critical to ensuring that the challenges 

surrounding the buildup can be overcome with innovative and 

forward-thinking solutions. A jointness approach should be adopted 

by the Department of Defense and the Government of Guam. 

Allow me to touch upon a few of the challenges that I know will 

be discussed by our witnesses today. One challenge that has been 

identified is the availability of sufficient human capital for projects. 

The Fiscal Year 2008 budget should contain up to $345 million in 

military construction alone. To put that figure in perspective, the 

Department of Defense estimates that the on-island capacity for all 

construction is about $400 million. By Fiscal Year 2010, we are 

told that initial plans call for an increase in military construction 

to approach $2.5 billion for this buildup to work, a sevenfold increase over Fiscal Year 2008 funding. 

We will have to continue working together to ensure that our 

workforce currently on Guam is provided with adequate training 

opportunities in order to take advantage of skilled labored jobs that 

become available as a result of the buildup. That is why Chairwoman Christensen and I visited GCC last week. We need to exhaust this option before we earnestly discuss access to human capital beyond our borders. 

Another challenge that has been raised is the capacity of our 

port. The port has to prepare for the increase in shipping traffic, 

possibly as much as a 70 percent increase within the next four 

years. I have consulted with Governor Camacho and Federal officials about the port, and I am confident that the port will be able 

to adapt and make the necessary improvements that we need if cooperation begins today. Our community has to find consensus on 

the issue of port expansion, and policy makers have to really consider what the future of the port will be. 

Finally, while the buildup will provide a better quality of life and 

economic opportunity for residents of Guam, we cannot sacrifice the 

beauty and the ecological integrity of our island. Earlier this year, 

the Department of Defense commenced scoping meetings for the 

Environmental Impact Statement or the EIS. As General Bice will 

testify, the next step is to have the military do a more comprehensive analysis of the environmental impacts the buildup will bring 

8

for our island. The EIS may take 2 to 3 years to complete, and I 

assure you that wait will be worth it. A thorough analysis of all 

opportunities for improving infrastructure must be looked at and 

addressed in the final EIS document. 

In keeping with our promise to be innovative and forwardthinking, I hope that an EIS and a master plan will take into account opportunities for development of green infrastructure. In all 

cases where it is feasible we should be trying to build environmentally friendly and sensitive projects. I support the process and 

the approach that the Department of Defense has adopted in this 

early stage of planning. 

A single, comprehensive EIS for the buildup best ensures that 

our community has the opportunity to comment on all aspects of 

the planning, and that it compels the Department of Defense to 

render a balanced assessment of the impacts for our community, 

our environment. I urge the Department of Defense to continue 

strong public dialogue in this process, and to agree to reasonably 

mitigation in the event of adverse impacts. 

A project of this magnitude does not come without considerable 

challenges. However, I believe that our challenges will lead to 

progress. I’m optimistic that we can overcome these challenges, but 

I recognize that our goals must remain realistic as we move forward. The people of Guam have faced countless challenges over the 

course of our history, and have overcome these challenges time and 

time again. 

Our hearing today marks the beginning of an oversight role in 

Congress on the military buildup. It was important to hold our first 

such oversight hearing right here in Guam so that all of our citizens can listen to the concerns, the ideas, and the solutions proposed by various local and Federal leaders involved with the military buildup. 

Federal officials should be honest and direct in responding to 

Congress, and to the Government of Guam on this project. I have 

confidence in the Federal leaders that we will hear from today, and 

I have confidence in the talents and the potential of our community. 

Our role in Congress will continue to be to hold officials accountable in this process, and to ensure that all levels of government 

and civilian private sector leaders are working together for the benefit of all our residents. I am here today as a representative of all 

the people of Guam, and I am willing and ready to do my part to 

assist our leaders in working with the Federal Government. 

I want to commend Deputy Assistant Secretary David Cohen in 

cooperation with General David Bice, and the Joint Guam Program 

Office for beginning an interagency dialogue with Federal partners 

in the Government of Guam. 

It is time to get serious about the planning. There will be no 

blank check written to the Department of Defense or the Government of Guam. There is no magic wand that either the Federal 

Government or the Government of Guam can wave to solve these 

challenges. Success will be brought by planning and prioritization. 

We must fully take advantage of and utilize existing Federal programs and the mechanisms to meet identified needs. This is where 

partnership becomes the critical link to making this buildup work 

9

for all of us, for all the people of Guam, the military, the Federal 

Government. 

Again, I thank Chairwoman Christensen for holding this hearing, and I look forward to all the witnesses testimony. Thank you. 

Mrs. CHRISTENSEN. Thank you, Madam Chairwoman Bordallo. 

[The prepared statement of Ms. Bordallo follows:]

Statement of The Honorable Madeleine Z. Bordallo,

a Delegate in Congress from Guam 

Madam Chairwoman, thank you for agreeing to hold this very important hearing 

today on Guam about the impending military build-up for our island. As you know, 

this hearing is very important to us—to my constituents—as it is the first Congressional hearing to be held on Guam in 24 years. It has been my firm belief that the 

military build-up on Guam will offer our community a unique opportunity to grow 

our economy and to improve our public works and infrastructure. 

The 2005 Integrated Global Presence and Basing Strategy (IGPBS) from the Overseas Basing Commission, which was chartered by Congress, laid the groundwork for 

the rebasing of roughly 8,000 Marines from the 3rd Marine Expeditionary Force to 

Guam from Okinawa, Japan. The Overseas Basing Commission report reaffirmed 

the strategic importance of Guam in the region. By placing United States Armed 

Forces on Guam it affords the Department of Defense the flexibility and freedom 

of action to respond to regional threats and crises, while providing our island and 

our people additional security in the face of rising global threats. 

This very point of the strategic value of Guam has been underscored in Washington before Congress by many defense analysts and leaders, including our immediate previous Secretary of Defense, Donald Rumsfeld, who traveled to Guam in 

2003, to review for himself the opportunities for and value of placing additional assets and personnel on our military bases. The strategic value of Guam was also emphasized by Governor Camacho, the Guam Chamber of Commerce, and myself, before the Base Closure and Realignment (BRAC) Commission in 2005. And the recognition of the strategic value of Guam is a key reason why we now see renewed 

interest and investment from DoD in our military bases. I continue to believe and 

maintain that the BRAC closures in the 1990s were a mistake, including the closure 

of the Ship Repair Facility (SRF), the Public Works Center (PWC), the redeployment 

of ships and aircraft that were based here, and the downsizing of the Naval Computer and Telecommunications Area Master Station Pacific (NCTAMS). 

The Secretary of State, Dr. Condoleezza Rice, has declared 2007 to be the ‘‘Year 

of the Pacific.’’ The United States is increasingly focusing on efforts in our region 

to increase stability, good governance and economic development through closer political, economic and cultural ties to our neighbors. Our island is central to these 

efforts. 

All of this has laid a foundation for a renewed bilateral defense alliance with our 

friend and ally, Japan, which has moved Guam into a unique and high-level focus 

inside the Pentagon. 

Secretary Rumsfeld reminded me on several occasions that the U.S. military ‘‘goes 

where we are wanted.’’ Such sentiment is particularly relevant to the build-up for 

Guam. I have consistently maintained throughout my public career that the partnership we enjoy here on Guam with the U.S. military is beneficial to us overall 

and represents a key area, which through mutual respect and cooperation, we have 

and can continue to grow our economy. My belief in this regard has only grown 

stronger over the years and been reinforced with the opportunities presented before 

us with this build-up. 

Although the size of the military build-up is substantial in terms of investment 

needed for infrastructure, the total number of military personnel that will be moving to our island is roughly the same as the total numbers of military personnel 

that were stationed on Guam during the 1980s and early 1990s. In fact, the realignment of the 3rd Marine Expeditionary Force is a homecoming for the same division 

of Marines that liberated our island from enemy occupation 63 years ago. The Marines are returning to a community that respect and appreciate their selfless dedication and heroism. Many of our own sons and daughters have served and continue 

to serve proudly and honorably in the United States Armed Forces today. We welcome this move just as we would expect other communities to welcome our sons and 

daughters on the bases in their communities. 

The United States Marine Corps and the Navy have had a long and storied history on Guam. It is this history that bonds our island community and our partners 

in the military together. The military build-up signals the beginning of a new chapVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00013 Fmt 6633 Sfmt 6621 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
10

ter in the partnership between the residents of Guam and the United States Armed 

Forces. 

Beyond the historic symbolism of the move, the military build-up offers both our 

community and the federal government a unique opportunity to coordinate local and 

federal resources to improve the overall infrastructure on our island—which is key 

to our economic growth and achieving an overall better quality of life for our families and military service personnel on Guam. Moreover, the defense alliance and 

agreement with the Government of Japan will bring about increased military cooperation and training exercises on Guam. Guam welcomes these exercises that further strengthen this strategic partnership. Operation Valiant Shield is evidence of 

the growing interest in hosting multilateral training exercises from Guam. These exercises translate into security for our island and the region, and into jobs and earnings for our businesses, that will increase government revenues and enable infrastructure improvements. 

Moreover, even before the build-up begins in earnest we are seeing the early 

fruits of economic prosperity. Media reports have shown that property values have 

risen by 300% over the past year. Rising property values mean equity for the residents of Guam—and that translates into wealth. A well planned, integrated and coordinated master plan for the build-up will ensure that all of our residents can benefit from future economic opportunities that will improve their quality of life without sacrificing our heritage and culture. 

The build-up also offers other areas for improving our quality of life. The increased military presence stands to bring about better veterans’ services. Two weeks 

ago, the Secretary of Veterans’ Affairs announced the approval of a $5.4 million 

Community Based Outpatient Clinic (CBOC) to provide veterans on Guam with access to a modern health care facility. This announcement is indicative of new services on the way for our veterans. Also, we can expect that there will be increased 

medical expertise at the Naval Hospital with growth in our island’s population. 

Residents of Guam will benefit from the increase of medical expertise on-island. I 

encourage the Department of Defense and the Government to Guam to review areas 

for increased cooperation between Naval Hospital and Guam Memorial Hospital 

(GMH) in light of the build-up. 

These opportunities will only come to fruition if local, federal and military leaders 

cooperate and integrate their planning. The military build-up on Guam has been described as difficult, unique, impossible, and doomed for failure. I would beg to differ 

with such characterizations. Instead, I believe the military build-up presents our 

community with opportunities we would be foolish to ignore. Yet, we would also be 

foolish to underestimate the challenges it presents. There is no question that we 

face many challenges, but I think all of us would prefer to be facing these challenges 

that are associated with growth, rather than facing challenges associated with decline. We must be honest with ourselves and each other in this process. I prefer to 

be optimistic, but realistic. We must keep things in perspective if we are to succeed. 

The announcements and initial planning to date have generated senses of elation, 

anger, anxiety, and trepidation. Some view the build-up from a broad and balanced 

perspective; others are concerned with certain angles and elements given their roles 

and standing in the community, past experiences, or education and professional 

background. 

This hearing, and the dialogue that will be continued after today, is meant to capture a wide range of views and concerns. Three panels have been organized today 

with witnesses representing a broad cross-section of our community. This hearing 

marks the beginning of our dialogue, and will lay the foundation for a Congressional 

record on the build-up with focus on the civilian community and the concerns of our 

people. 

As Senator Pangelinan has stated, this build-up is an unprecedented move that 

we cannot afford to have addressed in a precedented way. It is an opportunity for 

the federal government and the Government of Guam to develop together innovative 

solutions to the challenges it presents. 

Since the establishment of a Joint Chiefs of Staff (JCS), the Department of Defense has been moving towards the creation of a truly ‘‘joint’’ or ‘‘Total Force’’ concept for all military forces. The Department of Defense has—with the Guam buildup—the unique opportunity to trail blaze a new era in the management of complex 

projects and to further its ‘‘jointness’’ approach beyond simply its own services. At 

the end of the day, the build-up of forces on Guam should be held as the example 

of how interagency cooperation and integration with civilian authorities can lead to 

successful outcomes. Cooperation and integration are critical to ensuring that the 

challenges surrounding the build-up can be overcome with innovative and forwardthinking solutions. A ‘‘jointness’’ approach should be adopted by the Department of 

Defense with the Government of Guam. 

11

Allow me to touch upon a few of the challenges that I know will be discussed by 

our witnesses today. 

One challenge that has been identified is availability of sufficient human capital for projects. The Fiscal Year 2008 budget could contain up to $345 million in military construction alone. To put that figure in perspective, the Department of Defense estimates that the on-island capacity for all construction is about 

$400 million. By Fiscal Year 2010, we are told initial plans call for an increase in 

military construction to approach $2.5 billion for this build-up to work—a seven fold 

increase over Fiscal Year 2008 funding. 

We will have to continue working together to ensure that our workforce currently 

on Guam is provided with adequate training opportunities in order to take advantage of skilled labor jobs that become available as a result of the build-up. That is 

why Chairwoman Christensen and I visited Guam Community College (GCC) last 

week. We need to exhaust this option before we earnestly discuss access to human 

capital beyond our borders. 

Another challenge that has been raised is the capacity of our port. The port has 

to prepare for the increase in shipping traffic, possibly as much as a 70% increase 

within four years. I have consulted with Governor Camacho and federal officials 

about the port, and I am confident that the port will be able to adapt and make 

the necessary improvements that we need if cooperation begins today. Our community has to find consensus on the issue of port expansion and policy makers have 

to really consider what the future of the port will be. 

Finally, while the build-up will provide a better quality of life and economic opportunity for residents of Guam we cannot sacrifice the beauty and ecological integrity 

of our island. Earlier this year the Department of Defense commenced scoping meetings for the Environmental Impact Statement or the EIS. As General Bice will testify, the next step is to have the military do a more comprehensive analysis of the 

environmental impacts that the build-up will bring for our island. The EIS may take 

two to three years to complete and I assure you that the wait will be worth it. A 

thorough analysis of all opportunities for improving infrastructure must be looked 

at and addressed in the final EIS document. In keeping with our promise to be innovative and forward-thinking, I hope that an EIS and master plan will take into account opportunities for development of ‘‘green’’ infrastructure. In all cases where it 

is feasible, we should be trying to build environmentally friendly and sensitive 

projects. I support the process and approach that the Department of Defense has 

adopted in this early stage of planning. A single, comprehensive EIS for the buildup best ensures that our community has the opportunity to comment on all aspects 

of the planning, and that it compels the Department of Defense to render a balanced 

assessment of the impacts for our community and our environment. I urge the Department of Defense to continue strong public dialogue in this process, and to agree 

to reasonable compensatory mitigation in the event of adverse impacts. 

A project of this magnitude does not come without its share of considerable challenges. However, I believe that our challenges will lead to progress. I am optimistic 

that we can overcome these challenges, but I recognize that our goals must remain 

realistic as we move forward. The people of Guam have faced countless challenges 

over the course of history and have overcome these challenges time and time again. 

Our hearing today marks the beginning of our oversight role in Congress on the 

military build-up. It was important to hold our first such oversight hearing right 

here on Guam so that all of our citizens can listen to the concerns, ideas and solutions proposed by various local and federal leaders involved with the military buildup. Federal officials should be honest and direct in responding to Congress and to 

the Government of Guam on this project. I have confidence in the federal leaders 

that we will hear from today, and I have confidence in the talents and potential of 

our own community. Our role in Congress will continue to be to hold officials accountable in this process and to ensure that all levels of government and civilian 

private-sector leaders are working together for the betterment of all residents. I am 

here as the representative of all the people of Guam, and I am willing and ready 

to do my part to assist our leaders in working with the federal government. I want 

to commend Deputy Assistant Secretary David Cohen, in cooperation with General 

David Bice and the Joint Guam Program Office, for beginning an interagency dialogue with federal partners and the Government of Guam. 

It is time to get serious about the planning. There will be no blank check written 

to the Department of Defense or the Government of Guam. There is no magic wand 

that either the federal government or the Government of Guam can wave to solve 

these challenges. Success will be brought by planning and prioritization. We must 

fully take advantage of and utilize existing federal programs and mechanisms to 

meet identified needs. This is where partnership becomes the critical link to making 

this build-up work for all of us. 

12

Again, I thank Chairwoman Christensen for holding this hearing and I look forward to all of the witnesses’ testimony. 

Mrs. CHRISTENSEN. If there are no objections, I’d now like to submit, for the official record, the written testimony of the following 

individuals: John and Cherry Aguon, Carlotta Leon Guerrero, The 

Honorable Judith Paulette Guthertz of the 29th Guam Legislature, 

Wayne Nastri, Regional Administrator for Region 9 of the U.S. Environmental Protection Agency, Michael D. Setzer II, Abraham 

Wong, Division Administrator, Hawaii Division of the Federal 

Highway Administration. And hearing no objections, so ordered. [NOTE: Statements submitted for the record by the following individuals 

have been retained in the Committee’s official files:] • John and Cherry Aguon • Antonio Artero, Realtor/ Submariner-U.S. Navy (Ret.) • Deborah C. Belanger • Senator Frank F. Blas Jr., Legislature of Guam • Yvonne M.G. Blas • Bob Bureau • Senator Edward J.B. Calvo, Vice Speaker, 29th Legislature of Guam • Robert N. Celestial Sgt, President, ‘‘Pacific Association For Radiation Survivors’’ 

(PARS) • Manuel Cruz, Acting Executive Director of the Guam Development Disabilities 

Council (GDDC) • Arnold Davis, Major, USAF (Ret) • Felixberto R. Dungca Jr. • Florence Dungca • George C. Eustaquio • Monaeka Flores • Fuetsan Famaloa’an • Carlotta Leon Guerrero • Judith Paulette Guthertz, 29th Legislature of Guam • Cole Herndon • Dr. Thomas J. Iverson, Professor of Economics, University of Guam 

• Senator Frank T. Ishizaki, 29th Guam Legislature 

• Jesse Anderson Lujan, 29th Guam Legislature, Chairman of Committee on 

Aviation, Federal Affairs, Labor, Housing, Banking and Insurance 

• Saina Ma’ase 

• Greg S. Massey, Administrator, Alien Labor Processing and Certification 

Division, Guam Department of Labor 

• Peter C. Mayer, Ph.D. 

• Prudencio F. Meno 

• Wayne Nastri, Regional Administrator, U.S. Environmental Protection Agency 

• Mary A. Y. Okada, President, Guam Community College (on behalf of) 

• John A.B. Pangelinan 

• Debbie Quinata 

• Matt Rector, President, AFT Local 1581, AFL-CIO 

• Senator Rory J. Respicio, 29th Legislature of Guam 

• Michael D. Setzer 

• Peter R. Sgro, Chairman, Guam Hospital Development Forum 

• Dr. David L.G. Shimizu, 29th Guam Legislature 

• Berrie Straatman 

• Kenneth T. Tagawa, General Manager, Port Authority of Guam 

• John Ray Taitano, President, Veterans Advisory Council 

• Albert S. Topasna, Investigator 

• Mary Torre, President, Guam Hotel and Restaurant Association 

• Charles H. Troutman 

• David B. Tydingco, Chairman, Guam Visitors Bureau Board of Directors 

• Antonio R. Unpingco, 29th Guam Legislature 

• Richard H.J. Wyttenbach-Santos 

• Alfred Ysrael 

Mrs. CHRISTENSEN. I would now like to recognize the first panel 

of witnesses, The Honorable David B. Cohen, Deputy Assistant SecVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00016 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
13

retary for Insular Affairs at the U.S. Department of the Interior; 

Mr. David F. Bice, Executive Director of the Joint Guam Program 

Office; and Mr. Kenneth Lujan, Administrator for Guam and the 

CNMI for the U.S. Small Business Administration. 

The Chair now recognizes Deputy Assistant Secretary Cohen to 

testify for five minutes. The timing lights for all of the witnesses 

is on the table and will indicate when your time has concluded. 

And please remember that your full statements will be admitted 

into the record. 

STATEMENT OF DAVID B. COHEN, DEPUTY ASSISTANT 

SECRETARY FOR INSULAR AFFAIRS, U.S. DEPARTMENT OF 

THE INTERIOR 

Mr. COHEN. Hafa Adai, Madam Chairwoman and Madam Congressman. It is a pleasure to appear before you today. 

As you know, the Department of Defense is planning to transfer 

approximately 8,000 Marines and 9,000 family members from Okinawa to Guam at the cost of more than $10 billion. Impacts for 

Guam will be significant. 

Secretary Dirk Kempthorne and the Department of the Interior 

have a great interest in these developments. The Secretary is responsible for generally administering the Federal Government’s relationship with the territories. The Secretary also chairs the Interagency Group on Insular Areas, or the IGIA, which coordinates 

Federal policy with respect to the U.S. territories. The Secretary of 

the Interior has offered the services of the IGIA to the Department 

of Defense to coordinate Federal agency participation in this 

project. 

The IGIA has established a working group on Guam military expansion to address issues related to the military buildup. The 

working group supports the efforts of General Bice and DOD’s 

Joint Guam Program Office, and follows its lead, and includes in 

addition to DOD and Interior, the Departments of State, Agriculture, Health and Human Services, Labor, Justice, Transportation, Housing and Urban Development, Education, Veterans Affairs, as well as the Small Business Administration, the Office of 

Management and Budget, the U.S. Postal Service and others. We 

are working closely with the Government of Guam, both the Governor’s administration and the Legislature, whom the Secretary 

met with when he was here, Guam’s Delegate to the U.S. House 

of Representatives, Congresswoman Bordallo, members of the community, and will be working closely with the leaders of other island 

communities as well. 

On August 2nd, the IGIA hosted a meeting of numerous Federal 

agencies regarding the Guam military buildup. Besides the general 

meeting, five specialty workshops were convened to discuss policy 

and resource requirements relating to (1) labor and workforce 

issues, (2) Guam civilian infrastructure needs, (3) health and 

human services requirements, (4) the environment, and (5) socioeconomic issues. 

At this point, we are making a comprehensive effort to identify 

issues that will need to be addressed in order for the buildup to 

proceed smoothly, and are tasking agencies with the responsibility 

to address issues that fall within their respective domains. 

14

It is anticipated that this project will require 12,000 to 15,000 

construction workers. This large requirement for construction 

workers can be satisfied from pools of U.S. citizens located in 

Guam, the CNMI, other territories in the 50 states, Freely Associated State citizens, and foreign nationals, mainly from nearby 

countries. 

Currently, the number of journeyman construction workers that 

are labor eligible on Guam is limited. Journeyman workers from 

Asia can be relocated for work on Guam, but they must acquire an 

H-2B visa. Nationally, only 66,000 H-2B visas are issued annually. 

The Guam requirement for construction workers alone is approximately 20 percent of this nationwide cap. Attracting labor eligible 

journeyman workers from the 50 states may be quite a challenge, 

given that the construction industry has been so fully engaged in 

Hawaii and in parts of the Western U.S. mainland. 

There are pools of underemployed workers on Guam, in the 

CNMI, and in the Freely Associated States, who can be trained, 

placed in apprenticeship programs, fill in behind journeyman workers for a time, and later become journeymen themselves. But we 

need sufficient planning and lead time to make this scenario a reality. 

We are coordinating our efforts with the U.S. Department of 

Labor to establish training and apprenticeship programs in Hawaii, 

Guam, the CNMI, and the Freely Associated States. The job opportunities created by such programs will not only benefit the military 

on Guam, but will benefit our island communities in the Pacific. 

After the primary facilities are constructed, the new infrastructure on Guam should provide the people of Guam with good job opportunities over the long term. The Federal Government will need 

to partner with the Government of Guam and with the private sector to ensure that Guam’s workforce will be ready to take advantage of opportunities in information technology, management, and 

other fields, as well as a whole range of opportunities that will result from an expanding economy. 

One of the challenges that we will face will be to ensure that 

Guam civilian infrastructure can keep pace with the demands of 

the buildup and the results of the buildup. It will take creative collaboration among the Federal Government, the Government of 

Guam, the community in Guam and the private sector to address 

this challenge. 

Throughout Secretary Kempthorne’s recent trip to the U.S.-affiliated Pacific, accompanied by Assistant Secretary of the Navy B.J. 

Penn, the Secretary stressed the need to ensure that Guam’s military buildup is good for Guam and good for the neighborhood. If 

the project is planned and implemented properly, Secretary 

Kempthorne’s vision will indeed come to pass. And in fact, it is not 

only Secretary Kempthorne’s vision, but it is a vision that’s constantly resided by the Department of Defense, Assistant Secretary 

Penn, and General Bice as well. 

The construction of military facilities, and accompanying improvements to civilian infrastructure, will create job opportunities 

for the people of Guam, with opportunities left over for the people 

of the CNMI, other territories and the Freely Associated States. 

The resulting infrastructure will result in the opportunity for good 

15

long-term jobs. The increase in Guam’s population, by an estimated 

35,000 to 40,000 people, or over 20 percent, will create opportunities. All of these new people will, after all, need places to live, 

places to shop, places to dine, products and services to buy, roads 

to travel on, utilities to serve them. All of these needs will give rise 

to business opportunities and job opportunities. These people will 

also need places to visit for a change of pace, and many nearby island communities will be waiting to fill that need. Saipan, Tinian, 

Rota, Palau, Yap, Chuuk, Pohnpei, Kosrae, the Marshall Islands, 

and even American Samoa, all offer stunning natural beauty and 

a slower pace than they’ll find in Guam. There will be tourism development opportunities in these places. 

In order for us to realize this positive scenario, we will have to 

do our homework. We will have to identify critical path items and 

potential bottlenecks, and find ways to ensure that we address our 

challenges in a timely fashion. We don’t have all of the answers 

yet, but we have begun in earnest the task of identifying issues 

and developing solutions in partnership with the community in 

Guam. This effort will take a great deal of collaboration among the 

Federal Government, the Government of Guam, the people of 

Guam, the private sector and peoples of the surrounding islands. 

As the leader of the Interagency Group on Insular Areas, the Department of the Interior is prepared to do its part to make this 

massive endeavor a success. Si Yu’us Ma’ase. 

Mrs. CHRISTENSEN. Thank you, Deputy Assistant Secretary. 

[The prepared statement of Mr. Cohen follows:]

Statement of David B. Cohen, Deputy Assistant Secretary

for Insular Affairs, U.S. Department of the Interior 

Madam Chairwoman and members of the panel, it is a pleasure to appear before 

you today to discuss the U.S. military buildup on Guam and the challenges facing 

the military and civilian communities. 

As you know, the Department of Defense is planning to transfer approximately 

8,000 Marines and 9,000 family members from Okinawa to Guam at a cost of more 

than $10 billion. This cost will be shared between the U.S. Government and the 

Government of Japan. As General David Bice notes in his statement, impacts for 

the U.S. territory of Guam will be significant. 

Secretary Dirk Kempthorne and the Department of the Interior have a great interest in these developments. The Secretary has two responsibilities that connect 

the Department to the realignment of Pacific forces. First, the Secretary is responsible for generally administering the Federal Government’s relationship with the 

United States territories, and administers the financial assistance that the U.S. provides to the Freely Associated States (FAS) under the Compacts of Free Association. 

Second, the Secretary chairs the Interagency Group on Insular Areas, which is 

tasked with coordinating Federal policy with respect to the U.S. territories. 

Interagency Group on Insular Areas 

The Interagency Group on Insular Areas (IGIA) was re-established by President 

Bush on May 8, 2003 when he signed Executive Order No. 13299. The President 

designated the Secretary of the Interior as the presiding officer of the IGIA, and the 

Secretary of the Interior has offered the services of the IGIA to the Department of 

Defense to aid in coordinating Federal agency participation in this important base 

realignment project. In this regard, the IGIA has established a Working Group on 

Guam Military Expansion to address issues related to the military buildup. The 

Working Group includes the Departments of State, Agriculture, Health and Human 

Services, Labor, Justice, Transportation, Housing and Urban Development, Education, Veterans Affairs, as well as the Navy, the Small Business Administration, 

the Office of Management and Budget, and others. We are working closely with the 

Government of Guam and Guam’s Delegate to the U.S. House of Representatives, 

and will be working closely with the leaders of other island communities as well. 

16

On behalf of the IGIA, I have met several times with General Bice, most recently 

on August 2, when the IGIA hosted a meeting of numerous Federal agencies regarding the Guam military buildup. Besides the general meeting, five specialty workshops were convened to discuss policy and resource requirements relating to (1) 

labor and workforce issues, (2) Guam civilian infrastructure needs, (3) health and 

human services requirements, (4) the environment, and (5) socio-economic issues. 

This is the beginning of a massive effort. The overall task is challenging, not only 

for the Department of Defense, but for contributing Federal agencies and, most certainly, for Guam. At this point, we are making a comprehensive effort to identify 

issues that we will need to address in order for the buildup to proceed smoothly, 

and are tasking agencies with the responsibility to address issues that fall within 

their respective domains. 

Labor Needs 

Facilities must be constructed for the 8,000 Marines and 9,000 family members. 

It is anticipated that such construction will require 12,000 to 15,000 construction 

workers, with 75 percent of such workers coming from outside of Guam. This large 

requirement for construction workers can be satisfied from pools of United States 

citizens located in Guam, the Commonwealth of the Northern Mariana Islands 

(‘‘CNMI’’), other territories, and the 50 states; labor-eligible FAS citizens; and foreign nationals, mainly from nearby countries. 

Currently, the number of journeyman construction workers that are labor-eligible 

on Guam (U.S. and FAS citizens) is limited—both in absolute numbers for the region and because of distance from the U.S. mainland. Journeyman workers from 

Asia can be located for work on Guam, but they must acquire an H-2B visa, which 

allows the importation of temporary workers for temporary jobs. Nationally only 

66,000 H-2B visas are issued annually. The Guam requirement for construction 

workers alone is approximately 20 percent of this nationwide cap. As we plan for 

construction, we must consider pay and transportation incentives for attracting 

labor-eligible journeyman workers from territories, the 50 states and the FAS. This 

may be quite a challenge, given that the construction industry has been so fully engaged in Hawaii and in parts of the Western U.S. mainland. 

Additionally, there are pools of underemployed workers on Guam, in the CNMI, 

and in the FAS, who can be trained, placed in apprenticeship programs, fill-in behind journeyman workers for a time, and later become journeymen themselves. But 

we need sufficient planning and lead time to make this scenario a reality. 

We are coordinating our efforts with the U.S. Department of Labor to establish 

training and apprenticeship programs in Hawaii, Guam, the CNMI, and the FAS. 

The job opportunities created by such programs will not only benefit the military 

on Guam, but will benefit our island communities in the Pacific region. In the shortterm, the training envisioned will provide immediate economic stimulus for the U.S. 

Pacific region; in the long-term it will provide valuable skills and higher incomes, 

which today are in short supply in most of our U.S.-affiliated islands. 

After the primary facilities are constructed, the new infrastructure on Guam 

should provide the people of Guam with good job opportunities over the long term. 

The Federal Government will need to partner with the Government of Guam and 

with the private sector to ensure that Guam’s workforce will be ready to take advantage of opportunities in information technology, management, and other fields, as 

well as a whole range of opportunities that will result from an expanding economy. 

Financing of Improved Civilian Facilities 

One of the challenges that we will face will be to ensure that Guam’s civilian infrastructure can keep pace with the demands of the buildup and the results of the 

buildup. The buildup itself will strain the capacity limitations of Guam’s port facilities. The population increase resulting from the buildup will challenge the capabilities of Guam’s civilian infrastructure, which is inadequate as it is to address the 

needs of Guam’s current population. It will take creative collaboration among the 

Federal Government, the Government of Guam and the private sector to address 

these challenges. 

Making Sure the Buildup is ‘‘Good for Guam; Good for the Neighborhood’’

Throughout Secretary Kempthorne’s recent trip through the U.S.-affiliated Pacific, 

he stressed the need to ensure that Guam’s military buildup is ‘‘good for Guam and 

good for the neighborhood.’’ Indeed, if the project is planned and implemented properly, Secretary Kempthorne’s vision will indeed come to pass. The construction of 

military facilities, and accompanying improvements to civilian infrastructure, will 

create job opportunities for the people of Guam, with opportunities left over for the 

people of the CNMI, other territories, the Freely Associated States and other Pacific 

nations. The resulting infrastructure will result in the opportunity for good, longVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00020 Fmt 6633 Sfmt 6621 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
17

term jobs. The increase in Guam’s population, by an estimated 35,000 to 40,000 people or over 20 percent including military and family members, construction workers, 

and other public and private sector service providers, will create opportunities. All 

of these new people will, after all, need places to live, places to shop, places to dine, 

products and services to buy, roads to travel on, utilities to serve them. All of these 

needs will give rise to business opportunities and job opportunities. These people 

will also need places to visit for a change of pace, and many nearby island communities will be waiting to fill that need. Saipan, Tinian, Rota, Palau, Yap, Chuuk, 

Pohnpei, Kosrae, the Marshall Islands and even farther away American Samoa all 

offer stunning natural beauty and a slower pace than they will find on Guam. There 

will be tourism development opportunities in all of these places. 

In order for us to realize this positive scenario, we will have to do our homework. 

We will have to identify critical path items and potential bottlenecks, and find ways 

to ensure that we address our challenges in a timely fashion. We don’t have all of 

the answers yet, but we have begun in earnest the task of identifying issues and 

developing solutions. This effort will take a great deal of collaboration among the 

Federal Government, the Government of Guam, the people of Guam, the private sector and peoples of the surrounding islands. As the leader of the Interagency Group 

on Insular Areas, the Department of the Interior is prepared to do its part to make 

this massive endeavor a success. 

Thank you. 

Mrs. CHRISTENSEN. And the Chair now recognizes General Bice 

for his testimony. 

STATEMENT OF GENERAL DAVID F. BICE, USMC,

EXECUTIVE DIRECTOR, JOINT GUAM OFFICE 

General BICE. Thank you, Madam Chair and Congresswoman 

Bordallo. This a great opportunity to lay out the Department of Defense plans for the U.S. Military buildup on Guam and address the 

challenges facing the community. 

On the 1st of May 2006, the United States and Japan agreed to 

the realignment of forces on Japan and in the Pacific. One of the 

several initiatives concerns the move of approximately 8,000 3rd 

Marine Expeditionary Force personnel and approximately 9,000 

family members from Okinawa to Guam. The desired completion 

date for the relocation is 2014. The total estimated development 

cost for the relocation of the Marine units to Guam is about 

$10.27 billion. The Government of Japan will provide up to a total 

of $6.09 billion, with the remaining $4.18 billion provided by the 

U.S. Government, as well as any additional cost. 

A Guam Joint Military Master Plan is currently being developed. 

Land-use alternatives are expected to be developed by November 

2007, with a planning-level master plan to be completed by July 

2008. 

An Environmental Impact Statement is also in development. The 

notice of intent was published in March 2007, and public scoping 

meetings held on Guam, Tinian, and Saipan in April 2007. The 

Final Environmental Impact Statement is scheduled for completion 

in October 2009, with the Record of Decision expected to be signed 

by the Assistant Secretary of the Navy for Installations Environment by January 2010. 

Guam and the surrounding islands’ economies will be impacted 

through the multi-billion dollar construction projects and improvements to the islands’ utility services that support the military 

forces. The addition of approximately 20,000 U.S. service members 

and their families will add considerably to the islands’ economies 

and tax base through increased demand for retail goods and servVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00021 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
18

ices, airline transportation, housing, entertainment, and consumer 

spending. The buildup will attract a wide range of individuals from 

the private sector who engage in professional services, such as 

medical, education, legal, engineering, human services and others, 

which will impact the overall quality of life to the island residents. 

As Secretary Cohen stated, it is estimated that between 12,000 

and 15,000 workers will be needed on Guam to construct the necessary operational, training, housing, and other support facilities. 

We are working closely with other Federal department agencies 

and the Government of Guam to create training opportunities for 

the residents of Guam, CNMI, and Freely Associated States to acquire new skills to be ready for these increased job opportunities. 

Additionally, we will work with these department agencies to coordinate medical care, support facilities, homeland security impacts, and human services for the arriving U.S. and foreign workers. 

We are concerned about the strain on Guam’s safety and security 

services, the impact on small businesses and local job opportunities, and the effect on local quality of life, roads, and access to recreational areas. In many cases, such as police, fire, and roads, the 

increased capabilities must be in place even before the construction 

phase begins. 

Infrastructure improvements remain a particular area of concern. The commercial port will require significant improvements 

and upgrades to adequately handle the inflow of construction materials and supplies during and after the military buildup. The capacities for water, power, solid waste, and wastewater are all major 

concern due to the predicted increase in demand. We will work 

with other Federal agencies and the Government of Guam to find 

mutually beneficial ways to improve the existing infrastructure on 

Guam, where practicable. 

DOD is committed to being a good steward of the environment. 

In partnership with Federal and Guam agencies, we will carefully 

build in protection for Guam’s precious resources—coral reefs, cultural and historic sites, endangered species, and other natural resources. We will take special precautions and actions on invasive 

species, noise, and air quality. Where needed, we would develop appropriate mitigation plans. We are mindful of Guam’s water, wastewater, and solid waste challenges and will do our part in helping 

Guam in meeting EPA standards. 

We recognize Guam’s culture and heritage. We will work diligently with Guam’s people to ensure that protection. The patriotic 

spirit of Guam is well-known throughout our services. We honor 

their service and the sacrifice of those who gave their life in defense of our nation. Their sacrifices will never be forgotten. 

The buildup on Guam is one of the most significant events in the 

region since the end of the Vietnam War. This will bring unprecedented beneficial opportunities to the region. Department of Defense is committed to building a responsible program that supports 

our national interest, ensures peace and stability in the region, and 

benefits the people of Guam. 

Thank you for this important opportunity to discuss the military 

buildup on Guam. I also would like to thank you for your continued 

support for our forces and their missions. Thank you. 

19

Mrs. CHRISTENSEN. Thank you, General Bice. 

[The prepared statement of Mr. Bice follows:]

Statement of David F. Bice, Executive Director,

Joint Guam Program Office 

Madam Chairperson and members of the Subcommittee, thank you for the opportunity to testify on U.S. Military Buildup on Guam and challenges facing the community. As the Executive Director for the Joint Guam Program Office, I am responsible for the planning and integration of the Department of Defense infrastructure 

capabilities, master plan development, program and budget synchronization, construction oversight, government and business coordination, and strategic communications for the realignment of military forces to Guam. 

BACKGROUND 

The proposed military buildup on Guam is a key component of the United States 

Pacific Command’s initiative known as the Integrated Global Presence and Basing 

Strategy (IGPBS). IGPBS transforms U.S. global posture by increasing the flexibility to contend with uncertainty; strengthen allied roles; build new partnerships; 

create the capacity to act both within and across the Pacific region; develop rapidly 

deployable capabilities, and focus on effective military capabilities. Principle elements of the IGPBS initiative include the relocation of U.S. Marine Corps ground 

and air assets to Guam from various locations; creation of a U.S. forward based operating port for modern littoral warfare ships, combat logistics force ships, submarines, surface combatants, and high-speed transport vessels; continued efforts to 

develop a U.S. Air Force Global Intelligence, Surveillance, and Reconnaissance and 

Strike hub; and to develop and maintain a robust Western Pacific logistics hub sufficient to support United States Pacific Command’s requirements. 

Guam’s strategic location as the U.S. most western territory in the Pacific will enhance military force flexibility, freedom of action, prompt global reaction, regional 

engagement, and crisis response. Forces to be located on Guam will be readily employable and positioned forward with strategic and operational maneuver space. 

Operationally, Guam’s location in the Pacific enhances power projection and flexibility for expeditionary missions. 

On May 1, 2006, the U.S.-Japan Security Consultative Committee (SCC), consisting of the Secretaries of Defense and State and their Government of Japan counterparts, released a ‘‘U.S.-Japan Roadmap for Realignment Implementation’’ document. The SCC document outlines the schedules and timelines for implementation 

of the realignment initiatives in the October 29, 2005 SCC document, ‘‘U.S.-Japan 

Alliance: Transformation and Realignment for the Future’’. One of the several initiatives concerns the move of approximately 8,000 III Marine Expeditionary Force 

(MEF) personnel and their approximately 9,000 dependents from Okinawa to Guam. 

The desired completion date for the relocation is by 2014, a date requiring substantial U.S. and Government of Japan financial support and commitment. The estimated total development cost of the relocation of Marine units to Guam is 

$10.27 billion. The Government of Japan will provide up to a total of $6.09 billion, 

including $2.8 billion in cash for facilities and infrastructure and $3.29 billion in 

equity investments and loans to special purpose entities that will provide housing 

and utilities to support the Marines. The remaining $4.18 billion, and any additional cost growth, will be provided by the U.S. government. 

PLANNING 

A Guam Joint Military Master Plan is currently being developed. Land use alternatives are expected to be developed by November 2007, with the planning-level 

master plan to be completed by July 2008. Our preference is to remain on land 

owned by the federal government, but at this stage we have not determined whether 

our requirements will fit on existing DoD lands. Our master planning and environmental planning process will determine the appropriate course of action regarding 

land use. 

An Environmental Impact Statement (EIS) is also in development. The Notice of 

Intent was published in March 2007, and public scoping meetings held on Guam, 

Tinian, and Saipan in April 2007. As a result of the scoping meetings we received 

990 comments from private citizens, elected officials, and numerous organizations 

and agencies. Some examples of concern expressed by the Public centered on socialeconomics, utilities, land use planning, public health and social services, and traffic. 

Consideration of the comments will be ongoing throughout the development of the 

Environmental Impact Statement. At the request of the Chief of Naval Operations, 

the EIS will also examine alternatives to support a transient CVN for a period of 

20

21 days several times per year. The Final Environmental Impact Statement is 

scheduled for completion in October 2009, with the Record of Decision expected to 

be signed by the Assistant Secretary of the Navy, Installations and Environment by 

January 2010. 

Once the Environmental Impact Statement is complete and the Record of Decision 

is signed, actual construction may begin. In order to complete the relocation by 

2014, it is estimated that the island’s construction capacity must exceed $3.0 billion 

per year, more than three times the highest level of construction activity ever conducted on Guam. We are developing an acquisition strategy and working with the 

construction industry to find ways to achieve the necessary supply of materials, 

skilled labor, and management oversight on Guam to support the necessary level 

of construction activity. 

The Department of Defense’s Office of Economic Adjustment, which normally assists BRAC-affected communities, is playing a critical role in helping the Government of Guam to plan and prepare for the military build-up. The Office of Economic 

Adjustment will, in coordination with other Federal Departments and Agencies, provide technical and financial assistance to Guam. Their engagement with the Government of Guam will continue over the long run and will focus on developing a 

sound, comprehensive and effective assistance strategy and action plan to assist the 

Government of Guam and its agencies in adjusting to support the construction 

phase and the eventual arrival of military members and their families. 

BENEFITS TO THE AFFECTED COMMUNITIES 

Guam and the surrounding island’s economies will be impacted though the multibillion dollar construction projects and improvements to the islands’ utility services 

that support the military forces. The addition of approximately 20,000 U.S. service 

members and their families will add considerably to the islands’ economies and tax 

base through increased demand for retail goods and services, airline transportation, 

housing, entertainment, and consumer spending. The build-up will attract a wide 

range of individuals from the private sector who are engaged in professional services, such as medical, education, legal, engineering, human services, and others, 

which will improve the overall quality of life to the island residents. The arrival of 

men and women who routinely volunteer and support churches, schools, youth 

sports, philanthropic organizations, and community events will add to the social fabric of the communities. The increase in population is expected to spur entrepreneurship; people will invest in island projects and take increased risks that demand 

greater capital because of the assurance that a population-base exists that will create the demand for new goods or services. 

Allied and regional military forces will frequently visit Guam and the surrounding 

islands for training and military exchanges. The region will benefit by the near-by 

presence of highly trained and capable forces ready to respond to crises, natural disasters, and events requiring humanitarian assistance. The increased military presence will serve to maintain commercial access to the Pacific Region. 

CHALLENGES FACING THE COMMUNITY 

We expect the DoD population on Guam will expand from approximately 14,190 

to nearly 38,000. This will result in an overall 10 year total population growth rate 

of nearly 28%—twice the historic high in the 1990s. This does not include construction induced temporary population increase. 

It is estimated that 12,000 to 15,000 workers will be needed on Guam to construct 

the necessary operational, training, housing and other support facilities. Many, perhaps as many as 75% or more of these workers will come from off island and may 

require H-2B visas (‘‘off island’’ workers may be FAS workers or other U.S.-authorized workers who do not need H-2B visas). There is a nationwide H-2B Visa cap 

at 66,000 per year, while the nationwide demand for H-2B Visa workers exceeds 

that cap. We are working closely with other Federal Departments and Agencies and 

the Government of Guam to create training opportunities for residents of Guam to 

and the surrounding U.S. territories to acquire new skills to be ready for these increased job opportunities. Additionally, we will work with these departments and 

agencies in coordinate medical care, support facilities, homeland security impacts, 

and human services for arriving U.S. and foreign workers. We will also consider the 

effects on tourism, local business and fishing industries, and the long term impact 

on labor opportunities for local citizens and military family members. 

Socio-economic areas of concern include the strain on safety and security services 

(police, fire, and emergency medical support), the impact on small business and local 

job opportunities, and the effect on local quality of life, roads, and access to recreational areas. Schools are also a priority; the Department of Defense Education 

Administration Schools and the Guam Public School System must attract and retain 

21

quality teachers for both school systems. In many cases, such as police, fire, and 

roads, the increased capabilities must be in-place even before the construction phase 

begins. As you will hear, we are working closely with other Federal Departments 

and Agencies and the Government of Guam to resolve these issues. 

In terms of health and human services, we are concerned about specialty medical 

care availability on island, medical care for foreign workers, infectious disease risk 

and public health, the need for additional counseling services, and affordable quality 

housing. We will be working with Federal and Guam authorities to address these 

concerns. 

Infrastructure improvements remain a particular area of concern. The commercial 

port will require significant improvements and upgrades to adequately handle the 

inflow of construction materials and supplies during and after the military buildup. The capacities for water, power, solid waste, wastewater, hazardous waste, 

roads, and the commercial airport are all of major concern due to the predicted increase in demand. All of these areas will be addressed in the Environmental Impact 

Statement. We expect the study to identify a substantial need and opportunity to 

improve the existing infrastructure on Guam. The Government of Guam has identified millions of needed improvements for the island’s infrastructure. Although the 

DoD / Government of Japan funds are intended to provide only facilities to support 

the arrival of the Marines and their dependents, we will work with other federal 

agencies and the Government of Guam to find mutually beneficial ways to improve 

the existing infrastructure on Guam, where practicable. 

On August 2, 2007, Department of the Interior, Deputy Assistant Secretary for 

Insular Affairs, David Cohen and I co-chaired an Inter Agency conference to examine how the Federal Government can better coordinate support and assistance in 

helping Guam to prepare for this rebasing program. All attendees, representing 

nearly every Federal Department and Agency, recognized that we need to engage 

all elements of the Federal Government to support the people of Guam as we ask 

them to assume a more strategic role in the security of our Nation. As I stated earlier, some of this additional support and assistance to Guam must be in place prior 

to the construction phase. As we proceed with the relocation effort, Secretary Cohen 

and I will continue to hold regular Inter Agency meetings to help synchronize Federal support to Guam and the CNMI. 

DoD is committed to being a good steward of the environment. We have concurrence from following agencies to serve as cooperating agencies to assist us to adequately evaluate the potential environmental effects of the proposed action: U.S. Department of Agriculture, Federal Highways Administration, Federal Aviation Administration, U.S. Army Corps of Engineers, U.S. Air Force, and the U.S. Environmental Protection Agency. Additionally, in partnership with Federal and Guam 

agencies, we will carefully build-in protection for Guam’s precious marine resources, 

coral reef, cultural and historic sites, endangered species, and other natural resources. We will take special precautions and actions on invasive species, noise, and 

air quality standards. Where needed, we will develop appropriate mitigation plans. 

We are mindful of Guam’s water, wastewater, and solid waste challenges and will 

do our part in helping the Government of Guam in meeting EPA standards. On 

June 4-5, we conducted a partnering session with all Federal and Guam regulators, 

where all attendees acknowledged the need to work closely to develop a comprehensive and successful Environmental Impact Statement and action program. 

CONCLUSION 

The Department of Defense recognizes Guam’s culture and heritage. The patriotic 

spirit of Guam is well known throughout our military services. Men and women 

from Guam serve our nation around the world. We honor their service and the sacrifice of those who gave their lives in defense of our great nation. We give special 

tribute to those who have given their lives in the current Global War on Terror. 

Their sacrifices will never be forgotten. 

The Guam relocation requires a coordinated effort involving the Government of 

Guam, Department of Defense, Federal Agencies, and private businesses. The buildup on Guam is one of the most significant events in the region since the end of the 

Vietnam War. Relocating over 17,000 military personnel and family members to 

Guam will have significant impact to the island and region. This will bring unprecedented beneficial opportunities for the region. We need innovative solutions to make 

this a success. The Department of Defense is committed to building a responsible 

program that provides for peace and stability in the region, enables operational maneuver for our forces and benefits the people of Guam and the surrounding islands. 

Thank you for this important opportunity to discuss the military build-up on 

Guam. I would also like to thank you for your continued support and dedication. 

22

We have a challenging and exciting program to accomplish and I look forward to 

working with all involved in the future. 

Thank You 

Mrs. CHRISTENSEN. The Chair now recognizes Mr. Lujan to testify for five minutes. 

STATEMENT OF KENNETH Q. LUJAN, ADMINISTRATOR FOR 

GUAM AND CNMI, U.S. SMALL BUSINESS ADMINISTRATION 

Mr. LUJAN. Hafa Adai and good morning, Chairwoman 

Christensen and Congresswoman Bordallo. Thank you for inviting 

me to discuss SBA’s commitment to assisting small businesses on 

Guam. I am Kenneth Lujan, Guam Branch Manager for the U.S. 

Small Business Administration, SBA. I oversee the areas of responsibility that are in Guam, CNMI, the FSM, Republic of Palau, and 

Republic of the Marshall Islands. 

The mission of the SBA is to aide, counsel, and protect the interests of small business concerns, as well as to advocate on their behalf. SBA’s outreach of assistance to small businesses extends to all 

50 States, as well as all U.S. territories, in the form of technical, 

financial, contracting, and disaster recovery assistance. For many 

years, SBA has aided the island communities with its direct loan 

programs after natural disasters and its guaranty loan program for 

start-up and existing small businesses. SBA continues to remain 

committed to existing small businesses in achieving the entrepreneur spirit on the island of Guam. 

I want to provide the Subcommittee with a small business background of the island of Guam. In the year 2002, Guam’s establishments numbered 2,926, employed 43,104 people, and generated 

$4.6 billion in revenues. Small employer establishments with 50 or 

more employees represented 97.2 percent of businesses on the island. Establishments with 50 or more employees accounted of 51 

percent of employed persons and almost 50 percent of revenues. 

Most of these jobs were in retail trade, accommodations and food 

services, administrative, support, waste management, and remedial 

services. In addition, the total number of bank branches in Guam 

also declined from 34 in 2004 to 31 in 2005. SBA recognizes the 

challenges of the small business concern and continues to work 

with the island small business community, as well as our government to adjust such concerns. 

Additional statistics for Guam reveal that there currently 38 8(a) 

firms, 48 Service-Disabled Veteran Owned firms, 104 WomenOwned firms and 203 Minority-Owned firms on Guam that are registered to do business with the Federal Government. SBA is actively engaging with a number of government, private, and nonprofit organizations to expand our public-private partnerships. By 

doing this, we plan to achieve improved local outreach efforts following a disaster, improving plan capabilities and bolstering processing capabilities. 

A challenge affecting the small business community in Guam 

and its neighboring islands is having the necessary data to make 

sound business decisions. SBA encourages each business obtaining 

an SBA-guaranteed loan to develop a business plan to serve as 

their roadmap to success. Feasibility studies, estimation of cost, 

23

budget forecasting, and management of operations play an intricate 

role in operating a successful business on this island. SBA provides 

resources necessary to develop such a roadmap to success. To provide adequate training, counseling, and business development 

plans, SBA sponsors several Small Business Development Centers 

on Guam, as well as throughout the islands. And they’re there to 

assist the small businesses. 

Guam continues to experience discussions of military buildup, 

which have stimulated the business environment, as witnessed by 

the increase in business activity throughout the island. The massive influx of military personnel and their families will bring new 

business, as well as potential new business owners to the island. 

SBA will continue to provide assistance to existing small business 

owners and potential new small businesses, as well as assists them 

in securing government contracts on the island of Guam, many of 

which are associated with the Guam Integrated Military Development Plan. These contracts will be crucial to ensure that the island 

can accommodate the potential reassignment of thousands of military personnel. 

Based on Defense Federal Acquisition Regulation (DFAR) 

236.570(c)(1), solicitations for military construction contracts that 

are funded with military construction appropriations and are estimated to exceed $1 million will allow a preference to United States 

firms. To qualify for the preference, contract performances must be 

in a United States territory or possession in the Pacific, or in a 

country bordering the Arabian Gulf. To be defined as the U.S. firm, 

(1) the corporate headquarters must be in the United States; (2) 

the firm must have filed corporate and employment tax returns to 

the United States for a minimum of 2 years, and must have filed 

State and Federal tax returns for 2 years, and must have paid 

taxes due as a result of these filings, and (3) the firm must employ 

the United States citizens in key management positions. This provision allows for contracts to be made to U.S. firms if they are 

made using appropriate funds. 

Since the passage of the Small Business Act in 1953, it has been 

the policy of Congress to ensure that small businesses receive a fair 

portion of Federal contracts. The Small Business Acts sets the goal 

of 23 percent of all Federal contract dollars for small businesses. 

SBA’s Office of Government Contracting and Business Development works to create an environment for maximum participation 

by the service-disabled veteran-owned, disadvantaged, and womanowned small businesses in Federal contracting and large prime 

contract awards. 

Guam has experienced an increase in the number of firms that 

have been certified under HUBZone program or the Historically 

Underutilized Business Zone. The HUBZone program stimulates 

economic development and creates business in urban and rural 

communities by providing Federal contracting preference to small 

businesses. These preferences go to small businesses that obtain 

HUBZone certification in part by employing staff who live in the 

HUBZone. 

Under the Transportation Equity Act, the entire island of Guam 

was designated as a HUBZone location, and as a result, the 

HUBZone-certified companies are beginning to receive Federal conVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00027 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
24

tracts. Currently, there are 122 HUBZone-certified companies located on Guam. 

To further assist businesses, SBA is continuously working with 

our entrepreneur development partners, including the SPDCs, to 

develop a strategy in which they can play an integral part in assisting small companies that are interested in doing business with 

the Federal Government. Outreach efforts are being directed toward potential businesses to assist them in registering their companies on the Central Contractor Registry, or CCR, website. 

Extensive training modules are planned for the next fiscal year 

to assist those businesses who are beyond the startup stage, and 

additional training for those who are just getting started. 

With discussions of the Guam Integrated Military Development 

Plan, SBA will continue to prepare the community with the 

necessary training, as well as inform small businesses on how to 

do business with the Federal Government. SBA plans to work with 

the Department of Defense and U.S. GSA, General Service Administration, to ensure that small businesses in Guam receive a fair 

opportunity compete for contracts. 

With that, I’d like to thank you, Si Yu’us Ma’ase, for the opportunity to speak to you today about this very important topic for the 

island of Guam. And this concludes my testimony. I look forward 

to answering questions you may have. 

Mrs. CHRISTENSEN. Thank you, Mr. Lujan. 

[The prepared statement of Mr. Lujan follows:]

Statement of Kenneth Q. Lujan, Guam Branch Manager,

U.S. Small Business Administration 

Hafa Adai, Chairwoman Christensen, Ranking Member Fortun ̃ o and distinguished members of this subcommittee. Thank you for inviting me to discuss SBA’s 

commitment to assisting small businesses in Guam. I am Kenneth Lujan, Guam 

Branch Manager for the U.S. Small Business Administration (SBA). 

The mission of the U.S. Small Business Administration is to aide, counsel, and 

protect the interests of small business concerns, as well as to advocate on their behalf SBA’s outreach of assistance to small businesses extends to all 50 States, as 

well as all U.S. territories, in the form of technical, financial, contracting and disaster recovery assistance. For many years, SBA has aided the island communities 

with its direct loan programs after natural disasters and its guaranty loan program 

for start-up and existing small businesses. SBA continues to remain committed to 

assisting small businesses achieving the entrepreneurial spirit on the island of 

Guam. 

I want to provide this subcommittee with a small business background of the island of Guam. In 2002, Guamanian establishments numbered 2,926; employed 

43,104 people; and generated S4.6 billion in revenues. Small employer establishments with 50 or more employees represented 97.2 percent of business on the island. Bankruptcies in Guam totaled 10 in 2005, compared to a total of 6 in 2004. 

Establishments with 50 or more employees accounted for 51.0 percent of employed 

persons and almost 50 percent of revenues. Most of these jobs were in retail trade, 

accommodation and food services, administrative, support, waste management and 

remediation services. In addition, the total number of bank branches operating in 

Guam declined from 34 in 2004 to 31 in 2005. SBA recognizes the challenges of the 

small business concern and continues to work with the island small business community, as well as our government to address such concerns. 

Additional statistics for Guam reveal that there are currently 38 8(a) firms, 48 

Service-Disabled Veteran Owned firms, 104 Women-Owned firms and 203 MinorityOwned firms on Guam that are registered to do business with the federal government. SBA is actively engaging with a number of government, private, and nonprofit organizations to expand our public-private partnerships. By doing this, we 

plan to achieve improved local outreach efforts following a disaster, improving planning capability and bolstering processing capability. 

25

A challenge affecting the small business community on Guam and its neighboring 

islands is having the necessary data to make sound business decisions. SBA encourages each business obtaining an SBA-guaranteed loan to develop a business plan 

to serve as their roadmap to success. Feasibility studies, estimation of costs, budget 

forecasting and management of operations play an intricate role in operating a successful business on the island of Guam. SB A provides resources necessary to develop such a roadmap to success. To provide adequate training, counseling and business development plans, SBA cosponsors a chapter of Service Corps of Retired Executives (SCORE) and seven Small Business Development Center locations on 

Guam to assist local small business owners. 

Guam continues to experience discussions of military buildup, which have stimulated the business environment as witnessed by the increase in business activity 

throughout the island. The massive influx of military personnel and their families 

will bring new business as well as potential new business owners to the island. SBA 

will continue to provide assistance to existing small business owners and potential 

new small businesses, as well as assist them in securing government contracts on 

the island of Guam, many of which are associated with The Guam Integrated Military Development Plan. These contracts will be crucial to ensure that the island can 

accommodate the potential reassignment of thousands of military personnel. 

Based on Defense Federal Acquisition Regulation (DFAR) 236*.570(c)(l), solicitations for military construction contracts that are funded with military construction 

appropriations and are estimated to exceed $1 million will allow a preference to 

United States firms. To qualify for the preference, contract performance must be in 

a United States territory or possession in the Pacific or in a country bordering the 

Arabian Gulf. To be defined as a U.S. firm: 1) the corporate headquarters must be 

in the United States; the firm must have filed corporate and employment tax returns in the United States for a minimum of 2 years (if required), must have filed 

State and Federal income tax returns (if required) for 2 years, and must have paid 

any taxes due as a result of these filings; and the firm must employ United States 

citizens in key management positions. (DFAR 252.236-7010). This provision allows 

for contracts to be made to U.S. Firms if they are made using appropriated funds. 

Since the passage of the Small Business Act in 1953, it has been the policy of 

Congress to ensure that small businesses receive a fair portion of Federal contracts. 

The Small Business Act sets a goal of twenty three percent of all Federal contract 

dollars for small businesses. SBA’s Office of Government Contracting and Business 

Development (GCBD) works to create an environment for maximum participation by 

service disabled veteran-owned, disadvantaged, and woman-owned small businesses 

in federal government contract awards and large prime subcontract awards. GCBD 

advocates on behalf of small business in the federal procurement world. 

Guam is experiencing an increase in the number of firms that have been certified 

under the HUBZone (Historically Underutilized Business Zone) certification program. The HUBZone Program stimulates economic development and creates jobs in 

urban and rural communities by providing Federal contracting preferences to small 

businesses. These preferences go to small businesses that obtain HUBZone certification in part by employing staff who live in a HUBZone. Under the Transportation 

Equity Act, the entire island of Guam was designated as a HUBZone location, and 

as a result, the HUBZone-certified companies are beginning to receive federal contracts. Currently, there are 122 HUBZone certified companies located on Guam. 

To further assist small businesses, SBA is continuously working with our entrepreneurial development partners, including SBDCs to develop a strategy in which 

they might play an integral part in assisting companies that are interested in doing 

business with the federal government. Outreach efforts are being directed toward 

potential businesses to assist them in registering their company on the Central Contractor Registry (CCR) website. Extensive training modules are planned for the next 

fiscal year to assist those businesses who are beyond the ‘‘start-up’’ stage with additional training for those who are just getting started. 

With discussions of The Guam Integrated Military Development Plan, SBA will 

continue to prepare the community with the necessary training as well as inform 

small businesses on how to do business with the federal government. SBA plans to 

work with the Department of Defense and U.S. General Services Administration to 

ensure that small businesses in Guam receive a fair opportunity to compete for contracts. 

Thank you and Si Yu’us Ma’ase for the opportunity to speak to you today about 

this very important topic for the island of Guam. This concludes my testimony; 1 

look forward to answering any questions you may have. 

26

Mrs. CHRISTENSEN. I recognize myself for five minutes of questions, and I’ll begin with the Deputy Assistant Secretary Cohen. 

This is a question that really has always—I’ve always felt I needed 

to have answered. The IGIA does play a very important role in coordinating the activities leading up to the military buildup, coordinating with different Federal agencies, and you say that its role is 

in coordinating Federal policy with respect to the territories. Can 

you—is there a framework for that Federal policy? What is the 

Federal policy with respect to territories? 

Mr. COHEN. Thank you, Madam Chairman. Well, what the IGIA 

attempts to do is make sure that when the Federal Government 

does adopt policies that affect the territories, that those policies are 

adopted, number one, in coordinated fashion, and number two, in 

a way that’s cognizant of the special needs and circumstances of 

the territories. 

So, as you well know, a lot of times, policies might be adopted 

that applies to the territories as well as to the 50 States, but the 

policies are designed for the 50 States, and when you apply them 

to the territories, they have unintended consequences. For example, 

when a law on airport screeners made citizens of American Samoa 

ineligible to work at their own airport, that was an example of that 

type of thing. And then sometimes territories can be inadvertently 

left out of policies that they should be included in. 

So, the IGIA is designed to try to address those issues, number 

one, making sure that policy toward the territories is well-coordinated, and that’s why we think it is very—it is an effective mechanism to bring all the agencies together and to make sure that the 

special circumstances of the territories are taken into account. 

Mrs. CHRISTENSEN. OK, thank you. General Bice, you spoke 

about training and that the DOD would be involved in training for 

the jobs and the different needs that will develop out of this military buildup. How is DOD collaborating with the Guam Community College and the Construction Association members here on the 

island? 

General BICE. Thank you, Madam Chairman. We are working 

closely with the Guam Department of Labor in establishing what 

we see is our worker requirements and what skills we see that will 

be needed, and then also working closely with the Secretary Cohen, 

the U.S. Department of Labor, U.S. Department of Education, and 

how we can address training here on Guam. 

The Department of Defense sees the critical need to get that established, not only for the immediate construction phase that’s impending, but also for the long term requirements after the construction is completed. 

We see a need for high-tech services, IT, Services and Support 

Industry, that’s going to be here supporting the Federal Government, the military here on Guam. It is going to place great demand 

for high-skilled workers here, and we would like to see that filled 

predominantly by Guam citizen and citizens from the local islands. 

So, yes, we are working closely with Mrs. Connelley at the Guam 

Department of Labor in establishing those requirements. 

Mrs. CHRISTENSEN. Thank you. Mr. Lujan, you gave a history of 

the small businesses on Guam and gave some statistics, but I’m 

still not clear on how you assess the health of this small business 

27

sector on Guam today? What is your assessment of the health of 

the sector of the economy in Guam? 

Mr. LUJAN. The health of the economy, thank you——

Mrs. CHRISTENSEN. Small business. 

General BICE. Thank you for the question, Madam Chair. The 

health of the economy right now is, we are still looking at this and 

ensuring that we improve upon the health. With the influx of the 

military personnel plus the number of dollar amounts coming 

through, we are there to try to help and see if we can improve it. 

At this point in time, as Congresswoman Bordallo mentioned, that 

with the increase of, the 300 percent increase and real estate prices 

have gone up, it has afforded the economy some room for some improvements, and there’s room for growth. What we like to see, as 

we go forward with this, is to see that we see more small businesses interact and get engaged with the economy, and get engaged 

with the contracting activity. 

Mrs. CHRISTENSEN. OK. I’m going to stop now because I expect 

that we are going to have several rounds of question for this panel, 

and I’d now recognize Congresswoman Bordallo for her questions. 

Ms. BORDALLO. Thank you very much, Madam Chair. Good 

morning, Mr. Cohen——

Mr. COHEN. Good morning. 

Ms. BORDALLO.—and welcome back to Guam. 

Mr. COHEN. Thank you. 

Ms. BORDALLO. My first question is for you. The President’s 

Interagency Group on the Insular Area is known, of course, to everyone here as the IGIA, and it was established by executive order 

in 2003. It seems to be well-suited and designed to facilitate cooperation with the Federal Government and between the Federal 

Government and the Government of Guam with respect to this 

buildup. In what ways has the IGIA engaged in this process to 

date, and in what function is it being tapped and used with respect 

to the ongoing buildup? Do you envision a budget formulation and 

recommendations to OMB through the IGIA? And can the Government of Guam expect Federal partners to come forward with the 

Department of the Interior in helping to fund identified priorities 

and requirements? 

Mr. COHEN. Thank you for the question, Madam Congresswoman. What the IGIA is doing is facilitating the effort to identify 

the needs for this buildup, the needs both from the Federal side 

and the needs as they relate to the community in Guam. And then, 

whether under the auspices of the IGIA or whether the auspices 

under the individual agencies, if there are resource requirements 

that are best addressed by the Federal Government, then we can 

work within the administration to try to secure those commitments. 

What we are doing, for example, is getting all the agencies together to work with the representatives from Guam to identify the 

critical path items that need to be addressed, and then we are 

going to get a sense of how much it is going to cost. And the Government of Guam has already done a great deal of work in this regard as well. So, we are in the process of comparing notes. Then 

we want to look at what existing resources there are to address 

these and identify any gaps that will prevent us from successfully 

28

implementing the project, both from the military’s perspective and 

from the perspective with the people of Guam. And at that point, 

certainly, under the leadership of the Department of Defense, possible resource commitments from individual agencies can be explored and formulated. We are not at that point yet, but of course, 

we have to move very quickly to identify these needs and any resource requirements. 

Ms. BORDALLO. So, in your mind, the process is working? 

Mr. COHEN. Yeah. We think it is working. 

Ms. BORDALLO. General Bice, I have a question for you. Would 

you care to comment on the role of the IGIA from the Joint Guam 

Program Office perspective, and how does the Department of Navy 

intend to help the Government of Guam access and receive Federal 

support and Federal funds for identified projects that fall outside 

the gate? 

General BICE. Thank you very much, Congresswoman Bordallo. 

We are working closely with Secretary Cohen and the IGIA on establishing a sense of urgency with other Federal agencies in getting 

ready for this military buildup. We see that, as I mentioned in my 

testimony, that there are going to be requirements long before the 

first construction worker ever shows up, such as police, fire, roads. 

And we are working closely with respective Federal agencies to 

identify those requirements, identify the resources needed to provide them, and then certainly the Department of Defense will work 

in coordination with them to make sure Congress understands 

those requirements and hopefully gets the funding to support it. 

Ms. BORDALLO. Thank you. I have another round of questions, 

Madam Chair, so if you’re going to the second round, I would like 

to ask. 

Mrs. CHRISTENSEN. You can go ahead and ask. 

Ms. BORDALLO. All right. This question is for both Mr. Cohen and 

General Bice. Concerns have been expressed about the social impacts that would likely result from a population increase associated 

with the military buildup. Senator Won Pat, later today, will testify 

to these concerns, and states in her written testimony a specific desire for gender issues to be examined. In what ways will the Federal Government be sensitive to the social impacts, and how will 

social impact be measured, gauged, and mitigated by the Federal 

Government? Do you believe commissioning a study of social impacts is warranted? And, if so, at what time would such a study 

be most relevant within the projected time frame for planning, and 

how might it be pursued and funded? Mr. Cohen, you first. 

Mr. COHEN. Sure. I think it is important to address the gender 

issues in the broader context of the possible—or the likely social 

impacts of the relocation. From the Department of the Interior’s 

perspective, we are prepared to help with funding. We have a technical assistance budget that can be helpful in this regard. But we 

also want to talk to our colleagues in the Federal family, you know, 

as one of the seminars that we had on August 2nd was on socioeconomic impacts. So, we have a number of agencies that are very 

actively looking at these very issues, Health and Human Services, 

Department of Education, and others. General Bice highlighted 

this in his testimony, and so the Department of Defense is sensitive to it. We will defer to the experts in the Federal Government 

29

as to timing, but we are certainly willing to work with our partners 

in the Federal Government, and the government and community of 

Guam, to do our part to contribute to this effort. 

Ms. BORDALLO. Well, Mr. Secretary, you and I worked very well 

together since I’ve been in Congress, so I will look forward to working together with you on these particular issues. 

Mr. COHEN. Certainly. 

Ms. BORDALLO. General Bice? 

General BICE. Yes, ma’am. And, for the Department of Defense, 

during our scoping sessions we held in April for the Environmental 

Impact Study, we received over 900 comments from the public. 

Most of them dealt with socioeconomic issues, and that’s going to 

help us guide our Environmental Impact Study and Statement to 

address those specific issues. Of course, there’s always room and 

opportunity for additional studies and clarity in that, and certainly 

speaking on behalf of the Department of Defense, we would welcome any support or any analysis in there that can be taken to 

make this a beneficial for both the military as well as the people 

of Guam. 

Ms. BORDALLO. Thank you very much. And, Madam Chair, I still 

have a few more questions. 

Mrs. CHRISTENSEN. We will have as many rounds as is needed 

to get our questions out. 

I’m glad to hear the U.S. Assistant Secretary Cohen say that the 

OIA will be prepared to provide technical assistance grants to do 

studies that might be needed, because I know that that’s a relatively easy process to apply for those funds, and I hope that some 

would be set aside specifically to deal with the issues that Guam 

is going to need to research here. 

And, Secretary Bice, I’m also glad to hear your answer as well. 

I have a couple of other questions. I guess I would go to Secretary Cohen first, as well, on the second round. You’ve listed the 

members of the IGIA, and I don’t know if it is an oversight, but 

I don’t see Homeland Security listed as a member of the IGIA. And 

I think, and I’m sure you would agree, that it is a very important—

would have a very important role to play, especially in the one that 

is specifically addressing the issues that come out of the military 

buildup. 

Do you plan to include the Department of Homeland Security? 

Have you had any informal or formal discussions with the Department? And, if so, could you identify what program offices that you 

have met and the kinds of discussions, insofar as you can reveal 

them today, that have gone on? 

Mr. COHEN. Oh, certainly. Thank you, Madame Chairwoman. 

And, it was an oversight, because they are involved. They are a 

member of the IGIA and they’ve been participating with us fully. 

A number of offices and agencies within Homeland Security have 

been participating with us. 

Off the top of my head, of course, we have U.S. Citizenship and 

Immigration Services that are going to be instrumental in any effort that we have to seek supplemental labor to the extent that the 

citizens of Guam and the surrounding territories and Freely Associated States cannot provide enough labor for this project. You know, 

30

we are going to have to explore Federal policies that Homeland Security is going to be centrally involved with. 

Mrs. CHRISTENSEN. Do you have an idea of how much of the 

needed labor can be supplied by CNMI and the Freely Associated 

States, do you have any idea? 

Mr. COHEN. Well, we don’t want to totally prejudge it, but the 

Department of Defense, in its testimony and also in my written 

statement, is anticipating that perhaps 75 percent of the labor may 

have to come from outside. 

Having said that, it is our intention to maximize the amount of 

labor that’s provided by the citizens of Guam, to the extent that 

these are the opportunities the citizens want, and we know that 

the citizens of Guam also want to focus on the long-term higher 

level managerial opportunities. 

But, this is the island of the people of Guam, so they should have 

first dibs on whatever opportunities——

Mrs. CHRISTENSEN. Absolutely. 

Mr. COHEN —they want, and then, you know, Northern Mariana 

Islands and others. 

But—and the General can correct me if I’m wrong—but I believe 

we are trying to prepare for that type of eventuality where you 

might need that level of supplementation from the outside. Other 

agencies as well are participating with us. 

Mrs. CHRISTENSEN. Did you want to add anything to that? 

I’m assuming that you agree that——

General BICE. Yes ma’am. 

Mrs. CHRISTENSEN —Guam, people of Guam first——

General BICE. We certainly want to, because we do want to make 

this good for the neighborhood. So, we want to exploit as much 

training as we can for the citizens of Guam, CNMI, and Freely Associated States. But, in the end, we don’t think that there’s going 

to be a sufficient labor pool out there to meet all of our needs, and 

we have to prepare for that eventuality. 

What the exact number is, we certainly don’t know it at this 

point, but we know that we are going to have to go for both, and 

we want to have priority for the Guam labor, CNMI, and for the 

Freely Associated States. 

Mrs. CHRISTENSEN. Thank you. 

General Bice, in your statement, you said something to the effect 

that DOD will work to improve the infrastructure of Guam where 

practical. 

Do you consider power to be an essential element of the operations of the military bases on Guam, and would you say that 

that’s critical? And, if so, isn’t it in the military’s interest to ensure 

that the civilian power infrastructure on Guam, which the bases 

are dependent on, is as robust as possible, or do you believe that 

it is the local government that should be solely responsible for 

making those upgrades that would be necessary? 

General BICE. Madam Chair, thanks for that answer (sic). It is 

a good question, and it is an issue that was addressed in the agreement between the United States and Japan. Japan agreed to provide up to $700 million in utility upgrade in support of the Marine 

relocation here, in the areas of water, wastewater, power, and solid 

waste management. 

31

In the area of power, we do see a need to increase, add to the 

capacity, if you will, of Guam’s electrical grid, and we are currently 

doing studies in conjunction with the Guam Power Authority and 

the Consolidated Commission on Utilities, doing analysis as to how 

best to do that. 

The arrangement we had through special purpose entities with 

the Government of Japan allows us to extend that beyond the military base, where we would normally stop, and it could positively 

affect the Guam costumer base. 

Mrs. CHRISTENSEN. But I know that in testimony that we will 

probably hear later from Mr. Sanchez of the Consolidated Commission on Utilities, that he’ll say that the military would best be 

served by using the existing grid rather than creating a new and 

entirely new system. I’m hearing that, yes, you would help to build 

up the power infrastructure here, but you’re still planning on a 

separate entirely new system. Don’t you know? 

General BICE. That is not correct. And——

Mrs. CHRISTENSEN. OK. I’d like to have——

General BICE —we are looking at all options. And, preferably, 

the Department of Defense does not want to be in the power business. We want to be buying power. We want to be a costumer of 

power. And working with the Consolidated Commission on Utilities, as well as the Government of Japan, who is making the investment into the infrastructure, we are looking on how best to do 

that. 

But preferably, we’d like to be part of, you know, have to be part 

of the Guam grid. So, it adds capacity to the grid in support of the 

military buildup. 

Mrs. CHRISTENSEN. But from the U.S. side, the current Guam 

grid is, or is not, considered critical infrastructure to DOD? 

General BICE. Oh, it is certainly is considered critical, yes, 

ma’am. 

Mrs. CHRISTENSEN. OK. Thank you. 

Thank you, General. 

I now recognize Ms. Bordallo for her questions. 

Ms. BORDALLO. Thank you, Madame Chair. 

Mr. Lujan, I have a question for you. I’ve worked with you in the 

past couple of years to have Guam designated as a HUBZone, all 

of Guam. And as a result of these developments, I have encouraged 

eligible small businesses on Guam to apply for the HUBZone 

certification. 

In your testimony today, you noted that there are now 122 such 

certified firms; is that correct? 

Mr. LUJAN. Yes. 

Ms. BORDALLO. Yes. 

Mr. LUJAN. Yes, it is. 

Ms. BORDALLO. OK. 

Mr. LUJAN. 122 right now. 

This is a moving target actually, because as we see the firms get 

certified, they also have the responsibility of maintaining that certification. Unlike most of the perception out there, just because the 

island of Guam is considered to be a HUBZone, they still have to 

get certification from the SBA. 

Ms. BORDALLO. That is correct, yes. 

32

Mr. LUJAN. So, we encourage online applications to get certifications from the SBA. 

What we believe, we believe that the HUBZone certification really helps out small businesses. We’ve seen an increase in contracting activities within both activities, both the Navy and the Air 

Force. 

Ms. BORDALLO. That is going to be the second part of my 

question. I want to know exactly the numbers. I would encourage 

the Navy to include HUBZone requirements and local preferences 

in its contracts related to the buildup as the process moves forward. 

And I believe that the set of sites provided for by the HUBZone 

programs could help Guam small business successfully compete for 

contracts during the buildup. 

First, Mr. Lujan, can you describe how the HUBZone designation 

has benefited business on Guam so far? And second, can you describe whether you believe HUBZone certified small businesses are 

more competitive in the Federal marketplace than those companies 

that are not so certified? 

Mr. LUJAN. Well, several years ago when we first started, there 

was zero. There were no HUBZone companies that were eligible for 

military contracts here in Guam. 

As a result of your assistance and your legislation that help push 

through HUBZone activity, we’ve seen a vast improvement upon it. 

Again the contracting activities are happy with it, both from the 

subcontracting and contracting, prime contracting submissions. 

Also, they are also satisfies with the quality of work that’s being 

submitted there. 

So, there are opportunities out there for small businesses, and 

we have seen a vast improvement upon it. 

Ms. BORDALLO. Just off-hand can you give me the number of 

businesses now doing a certified HUBZone, businesses that are 

doing business with the military as of today? 

Mr. LUJAN. As of today, there’s approximately about, probably 

about 20 contracts that have been made by the above. 

Ms. BORDALLO. Oh. Very good. All right. 

The next question I have is for General Bice. As I mentioned in 

my opening statement, I believe close coordination and integration 

of appropriate parties from all levels of government and private industries crucial to the successful buildup. I want to ensure that all 

parties have appropriate levels of access to and input into the studies that will shape the buildup. 

How is the Department of Defense integrating local government 

and business leaders into the EIS and the Guam Master Plan studies? And, second, is the Department of Defense using the Interagency Group that recently met in Washington, D.C., as the primary mechanism for coordination in integration, and what can 

Congress do, if anything, to support your coordination with other 

Federal agencies in the local government? 

General BICE. Thank you, ma’am, for the question. 

As far as coordinating with agencies, the EIS study will look at 

a wide range of information, from reference information, from existing Environmental Impact studies that the Air Force, the Navy, 

has already done here, as well as consulting with local leaders, 

33

local business communities, academia, and experts in the respective field. 

So, the EIS is a thoroughly researched and developed document, 

taking into account all the experts, primary locally here, who can 

address the impact for this military buildup. 

As far as the interagency, we do see a prime role for the interagency to play, because as I’ve stated before, this is not just a military action, it is a Federal Government action, and that we need 

to support of all the Federal agencies and departments in helping 

us to make this a success. And I was glad to see that the meeting 

that Secretary Cohen and I co-chaired, that we had a response 

from just about every department agency in the Federal Government in Washington, as well as a large contingent from the Government of Guam and the Task Force Commander to. So we are 

pleased to see that, and we think that’s critical. 

Ms. BORDALLO. Thank you. 

General, this is a rather difficult question, but I’m going to ask 

it anyway. Can you give us some idea of the extent of assistance 

you are giving our local government outside the gate during this 

military buildup? 

I mean, certainly——

General BICE. Yeah. 

Ms. BORDALLO —you know, a lot of people are very concerned. 

General BICE. Yes. And I certainly understand that there are a 

lot of questions. We have a lot of questions, as we do our planning. 

The National Environmental Protection Act requires a deliberate 

process to go through as we do our planning. It requires that studies and analysis precede any sort of decision-based planning that 

we go through. So up to this point, we have been relying heavily 

on the analysis done by the experts in addressing the impact on a 

community to potential options. And we will be developing a, what 

we call a diagrammatic plans, within a month. These are bubbles, 

if you will, on a map that show the potential way down, and within 

that, may have different options. From that, we will come up with 

feasible alternatives that will be developed by November this year. 

And then from that again, we will come up with a planning level 

master plan by July of next year. 

So, this is a process. I understand the frustration, but believe 

me, I would like to see the outcome just like anyone elsewhere. But 

the law requires us to follow through a deliberate process to make 

sure that we take everything into account before we start deciding 

anything. 

Ms. BORDALLO. Thank you, General. 

Thank you, Madam Chair. 

Mrs. CHRISTENSEN. Thank you, General Bice. 

As you develop that plan, when the plan is in draft, before it 

comes final, do you then come back to the Government of Guam 

and the public before it becomes a final document? 

General BICE. Thanks for that question, Madam Chair. 

Our master plan has to dovetail in closely with the Guam—the 

Government of Guam’s master plan. They currently, as you undoubtedly hear, they currently are also in a master planning process, and that our master plan and their master plan has to build 

together, because we share the same rose, we share the same infraVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00037 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
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structure. And so we cannot do our planning independent of theirs, 

neither can they do their planning independent of ours. So we will 

be closely coordinating and dovetailing our respective plans. 

Mrs. CHRISTENSEN. OK. 

You know, we hear a lot about the $10 point-something billion dollars. Can you tell us about the $6.02 billion that the Japanese 

are proposing to put in and the $4-plus billion from the U.S.? Are 

they dedicated to specific projects, or is there some flexibility that 

could enable other local projects to use some of that funding? 

General BICE. Thank you, Madam Chair, for that question. The Japanese are committed to provide a little over $6 billion in funding in support of this military buildup. $2.8 billion worth of 

that is established in—what we will call a Japanese direct funding. 

That’s cash that the DIACT and the Government of Japan will provide to the United States for the building of operational facilities, 

that is headquarters elements——

Mrs. CHRISTENSEN. So, it is a dedicated that the funding is dedicated to that——

General BICE. Dedicated to the military, operation facilities, as 

well as barracks, and (unintelligible), mess halls, and that. 

Now 3.29 billion of that is established in, what we would call, is 

often called, Special Purpose Entities, and there’s two parts of that. 

One part is housing, and that includes $2.55 billion for homes, 

right approximately 3500 homes that we are talking about. And 

then the $740 million in Special Purpose Entities, it would cover 

the upgrades to utilities that would support the military move. And 

the utilities we are talking about was a power, water, wastewater, 

and solid waste management. 

Mrs. CHRISTENSEN. Can you dispel the notion that there is a secret plan for where to house the Marines, and are you being totally 

open with the public on these issues? There seems to be some sense 

that there’s a secret plan that no one else is—that is not being 

shared. And I realize there may be some security issues, but in 

terms of the housing of the Marines, is there some kind a secret 

plan? 

General BICE. No. No, ma’am, there’s no secret plan. 

Of course, we are looking at Department of Defense lands first, 

and, you know——

Mrs. CHRISTENSEN. In terms of housing the Marines——

General BICE. In terms of——

Mrs. CHRISTENSEN.—you will be discussing it with the government and the public. 

General BICE. Yes, ma’am. 

In terms of lay down, we are looking at DOD lands first, and 

that’s where our study started. And then if it is determined that 

we need other lands, then we will look for that. 

We’ve been approached by landowners on Guam about using——

Mrs. CHRISTENSEN. And those would be lease or purchase. You 

would look to lease or——

General BICE. To an acquisition program. 

And we have been——

Mrs. CHRISTENSEN. And that would be at fair market value? 

General BICE. Yes, ma’am. 

Mrs. CHRISTENSEN. Thank you. 

35

I have a question that I wanted to ask Mr. Lujan as well. With 

regard to the Defense Federal Acquisition Regulation, I’m concerned and there’s a lot of concern on Guam that the small businesses or the businesses that are located here get first preference 

for work to be done here. And based on your testimony and your 

description of what that regulation is affirmed and from anywhere 

can move to Guam today and meet a two-year requirement, be classified as a U.S. firm and compete on equal footing with a Guamanian company for the work? 

Mr. LUJAN. Yes, ma’am, that’s correct. 

Mrs. CHRISTENSEN. And is there any—do SBA rules or regulations preclude giving preference to companies who’ve been here 

longer or which are local over someone that’s just been here for two 

years to qualify? 

Mr. LUJAN. Thank you for the question, Madam Chair. 

Unfortunately, because of the way DFAR regulations are outlined, there won’t be any preference given to any local companies 

here, per se, which is the reason why we continuously look for opportunities for veteran-owned businesses, women-owned businesses 

and minority-owned businesses. And we try to get them into the 

8(a) Programs so that we could set aside some of these fundings 

and perhaps also get them into HUBZone——

Mrs. CHRISTENSEN. So, you’re going to try to, in the time that we 

have, to make them more competitive for the projects that will be 

coming online? 

Mr. LUJAN. Correct. 

The fastest way of a fast track avenue is to go to through programs that we have currently in place as policy. Any deviation of 

that policy would create probably delays in the process, which 

would also ultimately become a delay for small businesses as 

they’re operating their business here locally. 

Mrs. CHRISTENSEN. Congresswoman Bordallo, do you have another question that you—(pauses). 

OK. I’ll ask my last and then I’ll turn to you for your last, and 

we will have questions submitted in writing to the panel for your 

responses for the record. 

During the brief with Administrator Finch—Admiral French 

and—French, and your staff on the issue—this is to General Bice, 

the issue was raised regarding the distribution between military 

personnel stationed and deployed and how such distinction captures or misses taxes which could be collected. 

As part of the planning process, is the military or is DOD willing 

to be creative on issues such as taxation of military personnel and 

taxes so that in some ways could possibly offset some of the impact 

caused by the buildup, so that—are you willing to look at creative 

ways? 

I understand that in sports, for example, some states may capture taxes and the team that plays there just for that one game. 

Are you willing to look at ways that the Government of Guam 

could capture some more of those taxes to assist them in preparing 

for this buildup? 

General BICE. Thank you, Madam Chair. 

We’ve been asked that question or related questions to that. I’m 

certainly not the person to talk about creative ways for taxes at 

36

this point. But certainly we will make all of our information known 

to the Internal Revenue. We’ve met with Internal Revenue and the 

Guam Revenue and Tax. We will make all the information known 

to them as to what we plan to do. 

There will be permanently stationed service members, and their 

families are coming here. There will continually be deployed units 

coming in here, and they may be here for days and weeks and 

months. And I’m not certain I understand what all the ramifications from a tax perspective would be on that, but the military still 

plans on continuing the permanently stationing and deploying of 

forces in here, transiting of forces in here, and the like. 

Mrs. CHRISTENSEN. Thank you. We will probably follow up on 

that question in writing. 

I now recognize Ms. Bordallo for her questions. 

Ms. BORDALLO. Thank you, Madam Chair. 

This question goes to General Bice. The Government Accountability Office and the Department of Defense have both released reports that reveal contaminants exist in the drinking water supply 

and in the water and soil on Guam. As the Environmental Impact 

Study moves forward, to what extent will the EIS take cleanup of 

existing contaminants in the water and soil into account? And second, will any of the buildup cost go to addressing current environmental mitigation requirements? 

I am concerned because I have heard through testimony from the 

GAO at a recent House Armed Services Subcommittee on Readiness, which I’m member, hearing that the Department of Defense 

has identified nationwide over $32 billion in environmental restoration requirements at active installations, BRAC, which certainly would include Guam, and formally use defense sites. And 

with actual funding levels requested well below the overall identified mitigation requirements, how can we be assured on Guam that 

our environmental challenges will not be worsened, but rather 

mitigated as a result of the buildup? 

General BICE. Thank you, Congresswoman Bordallo, for that 

question. 

We have just started our water utility study on Guam, and that 

is a concern in terms of looking at the water, the aquifer, the leakage of salt water into the aquifer. You know, that is a concern and 

will be addressed in the Environmental Impact Study. 

What the outcome on that would—I can’t predict it at this point. 

But it is a concern, and if there’s mitigation required in terms—

because we have to make sure that the water is clean and pure for 

the military buildup. 

Ms. BORDALLO. To everyone. 

General BICE. So, that will be addressed, and if there are other 

actions required, why, that’s going to have to be established. 

I think that’s separate from the issues that you’re addressing in 

terms of environmental cleanup. There are environmental cleanup 

issues here on Guam, as well as nationwide. And that’s being addressed separately as part of the, as I understand, the superfund 

program there. 

As we go through our environmental analysis, if we find, in 

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cause of the contaminants in that, that’s certainly going to be addressed as part of our action. 

Ms. BORDALLO. Well, I’ll be monitoring that, General Bice. 

Also, and one last question. Later today, Mr. Benny San Nicolas, 

representing the two Soil and Water Conservation Districts here on 

Guam, he will testify to the strong interest of opening up access to 

the military marketplace for locally grown farm products. 

In what ways is the Department of Defense oriented toward procurement of fruits and vegetables from our local farmers? What can 

be done in this area, and how can we work together to ensure such 

interests are explored and goals realized? 

General BICE. Well, ma’am, having been a former Base Commander, I know that in our procurement process, we are always 

looking to buy locally, especially when it comes to produce and 

vegetables and the like there, because it is better, it is more 

healthy, more wholesome, and it is good for the economy. 

Certainly I can’t speak for what commanders would be doing in 

the future, but my suspicion is that they will continue that practice. And, again, it is good for the members of the services and the 

local economy as well. 

Ms. BORDALLO. Thank you, General, and I’ll be monitoring that 

as well. 

Thank you, Madam Chair, and I yield back. 

Mrs. CHRISTENSEN. Thank you. 

I want to thank the witnesses for their valuable testimony and 

the members for their questions and for your answers. 

Members of the Subcommittee may have some additional questions, as I said earlier, for the witnesses and we will ask you to 

respond to these in writing. 

Mrs. CHRISTENSEN. At this time, this first panel is dismissed 

with our thanks, and I’d like to recognize the second panel of witnesses and thank them for their patience. 

The second panel of witnesses are, The Honorable Felix P. 

Camacho, Governor of Guam; The Honorable Mark Forbes, Speaker 

of the 29th Legislature of Guam; The Honorable Judith T. Won 

Pat, Minority Leader of the 29th Legislature of Guam; The Honorable Melissa Savares, Mayor of Dededo and President of the Mayors’ Council of Guam; and Mr. Simon Sanchez, Chairman of the 

Consolidated Commission on Utilities. 

Mrs. CHRISTENSEN. Thank you Governor, and I now recognize 

you, Governor Camacho, to testify for five minutes. Please know 

that your written testimony will be in the record, and feel free to 

speak from your testimony or——

Governor CAMACHO. OK. 

Mrs. CHRISTENSEN —from just off the top of your head if you 

wish. 

Governor CAMACHO. All right, thank you. 

STATEMENT OF THE HONORABLE FELIX P. CAMACHO,

GOVERNOR OF GUAM 

Governor CAMACHO. Well, good morning Madam Chairwoman 

and members of the Committee. Thank you for inviting me to testify on the military buildup and the opportunities, issues, and challenges facing our community. 

38

Madam Chair, I also thank you for holding this hearing on 

Guam. I understood from last night that this is the first Committee 

Hearing on Guam since 1978. And so it is so significant to better 

understand the needs and concerns of what I consider to be the single most important issue for us since our liberation in 1944. 

As you are well aware, we are poised to receive a significant increase of U.S. military assets over the next decade. The patriotic 

people of Guam stand in full support of this positive growth in our 

part of the Western Pacific. But this growth should not happen just 

inside the military fence line. 

Guam’s population is expected to increase from 168,564, which 

was a population in 2005, to an estimated 180,000-plus by 2010, 

without factoring any increase to the military population. Due to 

the normal increase, I have directed capital improvements throughout our island, civilian infrastructure, specifically in locations expected to develop more rapidly in light of the expansion as identified by military planners. 

Power generation, clean water, wastewater, infrastructure, sanitary landfill, modern roads, our seaport, otherwise known as the 

Port Authority of Guam, improved social services, and labor, such 

as required skilled workers, are all priorities of this GovGuam initiative. 

The Government of Guam has estimated the cost for infrastructure upgrades for our local infrastructure at roughly $1.1 billion, 

but as an isolated U.S. Territory, dependent on military and tourism, we are facing a monumental challenge in funding the required 

infrastructure upgrades on an accelerated time frame. The individual agencies within the Government of Guam are seeking all 

available funding to support these projects. 

The Government of Guam is also taking cost-cutting measures 

and other approaches to maximize limited funding of opportunities, 

including public-private partnerships. And for that reason, public 

sector involvement and infrastructure projects, such as power, 

water, wastewater, solid waste, port facilities, is anticipated. 

I am encouraged that the IGIA Working Group on Military Expansion convened recently at my request, and I thank the members 

of this Committee for your participation in Washington, D.C. The 

working dialogue that we had guides the Government and the island’s military command in understanding what is needed to respond to this tremendous growth and the impact to our community. 

Critical milestones negotiated between the Governments of 

Japan and the United States, and embedded in the bilateral agreements, have created an externally driven sense of urgency for 

Guam, for the U.S. Department of the Interior, and other executive 

branches, branch agencies. The sense of urgency may be contributing to, what we may consider at times, a lack of consideration 

to the rights of the people of Guam affected by this Department of 

Defense initiative. 

As Governor, I acknowledge that there are many issues and challenges, key decisions and others, that face Guam, some challenges 

of which are not the responsibility of the Department of Defense. 

However, funding for direct and indirect costs associated with the 

move of the 3rd Marine Expeditionary Force to Guam must be addressed and resolved as soon as possible. 

39

It is in everyone’s interest that the military expansion be implemented so that the outcomes achieved are sustainable, both physically, socially, and for the foreseeable future. An integrated, holistic approach that considers the Government of Guam’s utility and 

social services, as well as the military value of our island, is crucial. This holistic approach, one that integrates the needs of both 

the military and the island, should not be significantly more expensive than an inside the fence approach, but the returns, for all 

stakeholders, will be much greater. 

The military expansion for Guam is simply this: A restored confidence in our island and the acknowledgement of this strategic 

geopolitical role that Guam plays in and the global realignment of 

the Unites States Military Forces. 

In closing, Madam Chairwoman and members of the Committee, 

military expansion for Guam means progress. Military expansion 

means a strong economy that is poised for sustained growth alongside our core industries of tourism and transportation. The move 

of the U.S. Marines to Guam and the buildup at our current bases 

means a more developed local workforce, greater opportunities for 

our people, and a future of unprecedented prosperity. 

Guam is transforming into the Asia-Pacific Rim’s center for 

Asian-American trade and the tip of the American military spear 

in this part of the world. However, in order for all of this growth 

to be mutually beneficial, the Territory of Guam, our people, must 

be viewed as relevant and important stakeholders, equal partners, 

as key decisions and challenges are addressed. 

The community of Guam will be impacted. I want to ensure, as 

Governor, that this military buildup will be positive, beneficial, and 

sustainable for decades to come. This is one community, both civilian and military combined, that is dynamic. It is ever changing, 

and we all seek to make the best of our opportunities where America’s day begins. 

And with that, I thank you for your attention. Thank you. 

Mrs. CHRISTENSEN. Thank you, Governor. 

[The prepared statement of Governor Camacho follows:]

Statement of The Honorable Felix Camacho, Governor of Guam 

Madam Chairwoman and Members of the Committee, thank you for inviting me 

to participate in your hearing on the military buildup on Guam and the challenges 

facing our community. My name is Felix Camacho; I am the Governor of Guam. My 

testimony today is to present Guam’s perspective of the challenges that will accompany the military’s activities here. 

Madam Chair, I would like to express my appreciation to you and to the members 

of the Committee for holding this hearing here in Guam to better understand the 

needs and concerns of the single most important issue for the people of Guam since 

the Liberation of Guam from Japanese occupation in 1944. 

As you are aware, the Territory is poised to receive a significant increase of U.S. 

military assets over the next 10 years. From the $1 billion in activity at Andersen 

Air Force Base in Northern Guam to the $1 billion in projects at U.S. Naval Station 

Guam in the South and the planned $10 billion move of the 3rd Marine Expeditionary Force from Okinawa to Guam, the patriotic Americans of Guam stand in full 

support of this positive growth in our part of the Western Pacific. 

But this growth will not just and should not happen inside the fences of the military bases. 

According to U.S. Census Bureau estimates, Guam’s population is expected to increase from 168,564 in 2005 to 180,692 in 2010, without factoring any increase to 

the local military population by the U.S. Department of Defense. Due to the normal 

increase, I have pushed the Government of Guam to begin the process of directing 

40

capital improvements throughout our island, specifically in those locations expected 

to develop more rapidly in light of the expansion as identified by military planners. 

Clean water and waste water infrastructure, power generation, a sanitary landfill, 

modern roads and improved social services are all priorities of this effort. 

The Government of Guam has estimated the costs to support the military buildup 

at an estimated $1.1. billion. But as an isolated U.S. Territory, dependent on military and tourism, we are facing a monumental challenge in finding this funding on 

an accelerated time frame and under a sense of urgency. 

I commit to each of you that the individual agencies within the Government of 

Guam continue to seek all available funding sources to support projects that will 

improve the quality of life for all residents, both military and civilian alike. The 

Government of Guam also is taking cost-cutting measures and other approaches to 

maximize the limited funding opportunities afforded the island as a U.S. Territory—

including but, not limited to, public-private partnerships. 

As I stand before you here, I am encouraged by the fact that the Interagency 

Group on Insular Areas Working Group on Military Expansion convened recently 

at my request. The U.S. Department of the Interior Office of Insular Affairs, in cooperation with the U.S. Department of the Navy Joint Guam Program Office and 

the U.S. Department of Defense, leads this group. I want to take this opportunity 

to thank each of the members of the House Subcommittee on Insular Affairs for 

your participation in the first meeting of this working group. We must seek more 

opportunities to see representatives from the executive and legislative branches of 

our great nation in one room to discuss the future of Guam. Both Lt. Governor Michael Cruz and I are encouraged by the greater interaction between the Government 

of Guam and relevant federal agencies to guide the Government of Guam and the 

island’s U.S. military commands in understanding what is needed to respond to this 

tremendous growth and the certain impacts to the Guam community now and our 

future generations. 

But these efforts have not been without challenges. The Department of Defense 

entered into bi-lateral negotiations with the Government of Japan, which proposed 

to shift significant security assets to Guam, with little or no consideration of, or consultation with the Territory of Guam. It appears that the Nation’s and the interests 

of DOD took precedence forgoing any consideration of the impact to the citizens of 

Guam and this underlying attitude has permeated the relationship between DOD 

and the Government of Guam to date. 

Critical milestones negotiated and agreed upon between the Government of Japan 

and the United States, and embedded in the bi-lateral agreements, have created an 

externally driven sense of urgency for Guam, the U.S. Department of the Interior 

and the other executive branch agencies. This sense of urgency may be contributing 

to this lack of consideration of the rights of the people of Guam affected by this 

DOD initiative. This approach could set up a situation to see us fail. This is unacceptable. 

As Governor, I acknowledge there are many challenges that face Guam-challenges 

that are not the responsibility of DOD. However, I expect DOD to underwrite the 

costs directly and indirectly associated with DOD driven requirements for the move 

of the 3rd Marine Expeditionary Force to Guam. We cannot be expected to cover 

unfunded federal mandates or other substantial requirements of this military expansion. We have seen the effects of such mandates in other federal programs. 

It is in the best interests of the Nation, the Department of Defense and the people 

of Guam that the military expansion be implemented so the outcomes achieved are 

sustainable, both physically and socially, for the foreseeable future. An integrated, 

holistic approach that considers the people of Guam, our rights, our health and our 

well being as well as the military value of our island is crucial. This holistic approach, one that takes into account that DOD’s unprecedented expansion is being 

undertaken in this patriotic American community and one that integrates both the 

island requirements and the military requirements should not be significantly more 

expensive than an ‘‘inside the fence’’ approach, but the returns, for all stakeholders, 

will be much greater. 

Ladies and Gentleman-The military expansion for Guam is simply this: a restored 

confidence in Guam and the strategic importance of Guam in protecting the security 

of the United States of America. 

We have seen great examples of this over the past four years. In that time, there 

have been numerous carrier and battle group visits as well as increased interaction 

with foreign armed forces, including China and Australia. This fiscal year alone, 

Congress has appropriated more than $193 million for military construction activities on Guam. That number is expected to rise to the billions of dollars a few short 

years from now. 

41

This will greatly add to the forward deployed assets that are already on Guam 

to cover an area twice the size of the continental United States. 

The activity will complement those assets soaring above the skies of our beautiful 

island, including forward deployed B-1 and B-2 Bombers. We will welcome the Global Hawk Strike Force and a Rapid Engineer Deployable Heavy Operational Repair 

Squadron Engineer (RED HORSE) Squadron. 

Joint Military Exercises conducted on Guam by all branches of service and the 

Australian Royal Navy, Royal Malaysian Navy, Peoples Republic of China Army/

Navy, Russian Federated Navy, and Republic of Korea Navy will continue this year 

and beyond. These assets and activities will do much to ensure the security of Micronesia and the Pacific Rim. 

As I stand here, I must reflect on the fact that all of these interactions could not 

have been possible without our efforts to bring Washington to Guam. 

Former Secretary of Defense Donald Rumsfeld, Chairman of the Joint Chiefs of 

Staff, General Peter Pace and numerous congressional delegations including you 

who are here today have come to Guam to see for themselves Guam’s role and the 

challenges of a patriotic people who stand with America in the defense of democracy. 

Summary 

Madam Chairwoman and members of the Committee, military expansion for 

Guam means progress. Military expansion means a strong economy that is poised 

for sustained growth alongside our core industries of tourism and transportation. 

The move of the U.S. Marines to Guam and the buildup at our current bases means 

a more developed local workforce and the benefits will include higher paying jobs 

filled by a skilled, educated local workforce that is skilled and educated. 

Guam is a safe American community and is transforming into the Asia-Pacific 

Rim’s center for Asian-American trade and the tip of the American military spear 

in this part of the world. However, in order for all of this growth to be mutually 

beneficial, our island, our community and our people must be viewed as relevant 

and important stakeholders-equal partners-as we embark on transforming Guam 

into one community which will transform our island paradise forever. 

Thank you for your attention. I am pleased to answer any questions. 

Mrs. CHRISTENSEN. The Chair now recognizes Senator Won Pat 

to testify for five minutes. 

STATEMENT OF THE HONORABLE JUDITH T. WON PAT,

MINORITY LEADER, 29TH LEGISLATURE OF GUAM 

Senator WON PAT. Hafa Adai. 

My name is Judith Won Pat, Senator and Minority Leader. I’m 

actually going to read Version 5 of my testimony. I must state my 

disappointment however, that the local community are not invited 

to testify this morning. 

Before I begin to speak on the impact of the relocation of Marines from Okinawa to Guam, I would be remiss if I failed to address two issues of paramount importance to the people of Guam 

that has yet to be resolved—that of political status and war 

reparations. 

I won’t belabor the issue, but just to say that on political status, 

there is a need for Congress to support and fund the local effort 

for Chamorros to finally determine their own political destiny. 

On the issue of war reparations, we are elated that the World 

War II Loyalty Recognition Act has made it to the U.S. Senate. The 

Guam War Claims Review Commission, established by Congress, 

found that the U.S. has a moral obligation to pay proper compensation for war damages, that there is a lack of parity and war claims 

for Guam when compared to other war claim programs established 

by the U.S. Congress, and that Guam was erroneously excluded 

from coverage under Title II of the War Claims Act. 

42

I hope Congress would do the right thing and pass this very important legislation for the people of Guam and finally bring closure 

to this dark chapter in Guam’s history. 

Many would say that they do not oppose the military buildup, 

but they have concerns. My hope is that this hearing will convey 

to Congress the frustration and anxiousness that their fellow 

Americans in Guam feel about the coming military buildup and to 

recognize the need to include Guam and their leaders in the full 

scope of any discussion regarding the buildup. 

Five minutes is not enough to adequately cover every impact 

from the military buildup, but I will discuss a few. Guam is barely 

able to provide the necessary infrastructure to meet the requirements of the current community. Our water and power systems are 

at near capacity. Our roads are in need of repair. There is an immediate need to close Ordot dump and to open a new sanitary 

landfill, and our only civilian hospitals has been struggling to meet 

the needs of the current population. In addition, imported labor 

will be needed to complete construction projects. 

Job seekers from the Freely Associated States by virtue of the 

Compact will no doubt want to come to Guam to seek employment, 

independent contractors from the mainland, and other entrepreneurs looking for a quick buck. In the final analysis, we may see 

a population growth of up to 50,000 people. How would Guam deal 

with this explosive growth with an already overburdened infrastructure? 

Infrastructure and healthcare are basic quality of life issues, contrary to the U.S. Pacific Commands Pacific Fleet Fiscal Year 2008 

budget, where there’s a request under the quality of service category for $45 million for a new fitness center, and a $5 million 

dollar appropriation to Andersen Air Force Base to provide air-conditioning for animal kennels at $120,000 per kennel. 

I’m not asking for a new gym or for air-conditioned animal kennels. I’m asking about—I’m talking about investments on Guam for 

basic quality of life projects, bare necessities for any community. 

The introduction of so many new people to the island in a relatively short span of time will further accelerate the erosion of language-tradition in the Chamorro culture. Assistance by the Federal 

Government to Guam by providing funding and expertise in the 

areas of anthropology and culture preservation will be essential to 

ensure that the rich culture and language of the Chamorro people 

do not become extinct. 

The population increase will further dilute the Chamorros, who 

eventually become the minority in their own land. A scholarly, 

unbiased study needs to be undertaken. 

The separation of Guam Public Schools and the Department of 

Defense School has created a social separation among our children. 

Although the interest in establishing the best learning environment possible for children is understandable, the manner in which 

this has been pursued, whether right or wrong, has been divisive 

rather than unifying, factional rather than integrated. This is compounded by the migration of our teachers to the DODEA system for 

higher pay and cost of living allowances. This backwards policy 

flies in the face of the good works done by great Americans, such 

43

as Martin Luther King and President Kennedy, who fought for 

equality in education regardless of a child’s color, religion or creed. 

It was President Truman’s order in 1949 to desegregate the U.S. 

Military that necessitated the creation of Defense Department 

schools in the American south, whose schools were largely segregated, ironically. What the military in Guam is doing with 

DODEA seems like a huge step backwards for civil rights. The millions of dollars spent on Guam DODEA School should be instead 

used to bolster the local educational system and help us turn it 

around so it can benefit all children on Guam, civilian or military. 

A single integrated school system with a pool of resources, financial 

and personnel, supported by both the local and national government, is a possible and plausible alternative. 

Several Senators and I had the opportunity to visit Okinawa 

since they have faced many of these similar issues. Naturally, we 

look to them for answers regarding impact of the buildup, absent 

any information from our own Federal Government and military. 

The government of Japan has for some time understood the impact 

of the U.S. Military in Okinawa and has funded millions of dollars 

to Okinawa since the reversion to lessen the burden of the military 

presence. We seek the same action by our Federal Government. 

There have been many discussions about Guam being the Tip of 

the Spear and that Guam is of the highest strategic value and of 

great importance to the mission of the United States in regional security and national defense. As a U.S. Territory so far removed 

from the mainland, oftentimes our issues and concerns fall on deaf 

ears. This is why this Oversight Hearing on Guam means so much 

to the future of our island. It will be decisions made in Washington, 

D.C., and not on Guam, that will determine the direction of Guam 

for decades to come. 

In closing, in a joint press conference with Defense Secretary 

Rumsfeld and Defense Japanese Minister Yoshinori Ohno in 2005, 

Rumsfeld stated that the move was, and I quote, ‘‘designed to enhance the alliance’s capability to meet new threats and diverse contingencies and, as a whole, will reduce burdens on local communities,’’ end of quote. What about the burden on Guam? 

Last, on behalf of the people of Guam, I ask that the town hall 

meeting be moved to the community. 

Si Yu’us Ma’ase and thank you. 

Mrs. CHRISTENSEN. Thank you, Senator. 

[The prepared statement of Senator Won Pat follows:]

Statement of The Honorable Judith T. Won Pat,

Senator and Minority Leader, 29th Guam Legislature 

A warm Hafa Adai to The Honorable Chairwoman Donna Christensen and members of the Subcommittee on Insular Affairs, my name is Judith T. Won Pat senator 

and minority leader. I am speaking today on behalf of the minority senators of the 

29th Guam Legislature, Senators Rory J. Respicio, Vicente ‘‘Ben’’ Pangelinan, 

Adolpho Palacios, Tina Muna-Barnes, Dr. David Shimizu, and Dr. Judith P. 

Guthertz. 

Thank you for the invitation to testify in today’s oversight field hearing on the 

‘‘U.S. Military Buildup on Guam and the Challenges Facing the Community.’’ I commend Chairwoman Christensen for holding this hearing on Guam and I hope this 

will be the first of many congressional oversight field hearings that will be conducted on Guam which will allow the civilian community to voice their opinions 

about the military buildup. 

44

Before I begin to speak on the impact of the relocation of marine from Okinawa 

to Guam, I would be remiss if I fail to address two issues of paramount importance 

to the people of Guam that has yet to be resolved; that of political status, and war 

reparations. I won’t belabor the issue but just to say that on political status, there 

is a need for Congress to support the local effort for Chamorros to finally determine 

their own political destiny. 

On the issue of war reparations, we are elated that the World War II Loyalty Recognition Act has made it to the U.S. Senate for their consideration. To reiterate the 

findings of the Guam War Claims Review Commission established by Congress, the 

Commission found that; the U.S. has a moral obligation to pay proper compensation 

for war damages, that there is a lack of parity in war claims for Guam when compared to other war claims programs established by the U.S. Congress, and that 

Guam was erroneously excluded from coverage under Title II of the War Claims Act. 

With continued persistence and hard work on this issue, we hope to finally close 

this dark chapter in Guam’s history 

Our island, in the coming decade, will see a significant increase in our military 

and overall population with the arrival of Marines from Okinawa and their families. 

Not since the end of World War II has Guam experienced such a dramatic increase 

in military personnel. But unlike the post WWII buildup on Guam, we are in a 

much better and able condition to be active participants in the coming buildup. We 

envision a process in which the local government can be joint partners and where 

civilian community input will be taken not only into consideration, but be an integral part in the eventual decisions made. 

I do not oppose the military buildup or the movement of marines from Okinawa. 

My adamant objection is to the way that Guam has been treated so far in this very 

important, significant, and far reaching military buildup planning process. Why are 

the people that stands to be affected the most by this buildup are left out of the 

decision making process? 

To this day, we have been given little or no information as to the allocation of 

the billions of dollars that have been committed to the buildup on Guam. A discussion of socio-economic implications of the move and the possible immediate, latent, 

and residual impact on the quality of life on Guam has not even been discussed. 

Clearly Guam’s social, cultural and environmental resources will be impacted by decisions made by the military, and it should be recognized that there exist an obligation by the military to provide as much information and resources to the island to 

allow Guam leaders an opportunity to prepare and plan in anticipation of the military buildup. My hope is that this hearing will convey to Congress the frustration 

and anxiousness that their fellow Americans on Guam feel about the coming military buildup and to recognize the need to include Guam and their leaders in the 

full scope of any discussion regarding the buildup. 

There are four main topics that I wanted to cover in my testimony. They are infrastructure, economic impact, social impact, and education. 

INFRASTRUCTURE 

Guam, with a population of about 170,000 people, is barely able to provide the 

necessary infrastructure to meet the requirements of the community. Our water and 

power systems are at near capacity; our roads are in need of repair; there is an immediate need to close Ordot dump and to open a new sanitary landfill, and our only 

civilian hospital has been struggling to meet the needs of the current population. 

Imagine the impact of additional military personnel and support staff and their families totaling 30,000 people on our ailing infrastructure. A growth of 30,000 may just 

be the beginning. In addition, imported labor will be needed to complete construction projects, job seekers from the Freely Associated States by virtue of the Compact 

will no doubt want to come to Guam to seek employments, independent contractors 

from the mainland, and other entrepreneurs looking for a quick buck. In the final 

analysis we may see a population growth of up to 50,000 people. How will Guam 

deal with this explosive growth with an already overburdened infrastructure? 

In the coming years, the landfill at Andersen Air Force base will have reached 

its capacity and will have to be shut down. The landfill, run by the Navy, is also 

reaching capacity and has been rumored to be contaminated and toxic. So far we 

have not seen any plans by the military on what their intentions are after they close 

their landfills. With the influx of marines in the coming years, it will only hasten 

the closures of these landfills. 

The hospital is another concern. A real measure of how well we can provide for 

our sick and disabled population is the ratio of hospital beds per 1,000 population. 

Our only civilian hospital the Guam Memorial Hospital currently has a 208 bed capacity, meaning that the ration on Guam is 1.2. The U.S. National average is 2.8 

beds per 1000 population. The potential population boom in the next decade by the 

45

military buildup would eventual drop that ration to less than 1 bed per 1,000 persons. In the U.S. Pacific Command’s Pacific Fleet FY08 budget, there is a request under the quality of service category for $45 million for a new fitness center. While we 

applaud such a request for military personnel, we have to recognize that this request only benefits those inside the fence. That same $45 million invested in our 

local hospital would not only help GMH come up to par with national standards but 

would also allow them to better serve the local and military community. 

Any improvement to the infrastructure by the government of Guam benefits the 

entire island community. Can we say with certainty that the improvement made by 

the military on Guam will benefit both the military and the island community? 

Without any information from the military, we cannot plan properly for the buildup. 

ECONOMIC IMPACT 

While the potential economic grain as a result of the increase in defense personnel 

and spending are welcomed, we also need to examine the potential economic imbalance created by the huge increase in the population. 

Military personnel stationed on Guam currently receive overseas housing allow- ances ranging from $1,200 to $5,000 and more depending on their rank and marital 

status. This is much higher than the housing budgets of most residents locally. If 

even only a small fraction of the military personnel take advantage of these allowances, the cost of rental units on Guam will skyrocket, effectively increasing costs 

for Guam residents and pricing them out of the local rental market. 

Runaway inflation and an increase in the cost of living will become a problem for 

current residents of Guam. Already we have seen prices of utilities, healthcare, and 

fuel increase at an alarming rate with no relief in sight. With the increase of military personnel to the island, who for the most part are well compensated, this imbalance will only serve to increase the cost of living on island, create a situation 

of uncontrolled inflation, and further widen the gap between the rich and the poor. 

This will mean increasing the amounts of money the government will have to spend 

on welfare programs. 

Current shortage of teachers, doctors, nurses, laborers, will be compounded by a 

20% overnight growth in population. No community in the United States has ever 

faced such an unprecedented growth. Such unprecedented occurrence should be met 

with unprecedented assistance from the Federal Government and the U.S. Military. 

SOCIAL IMPACT 

The social impact of 30,000 new people on the island needs to be studied. There 

has been little research about the social impacts on the local populations and their 

responses to them. Gender issues for example need to be examined. How does the 

military buildup affect rates of prostitution, rape, and other violence against women, 

as well as the participation of women in the workforce and corresponding wage 

rates? A study, along the lines conducted by the Watson Institute for International 

Studies at Brown University, needs to be undertaken with a direct focus on the 

movement of military personnel, their families and other support staff and their immediate social impacts on the current population on Guam. 

In a joint press conference with Defense Secretary Rumsfeld and Japanese Defense Minister Yoshinori Ono in 2005, Rumsfeld stated that the move was ‘‘designed 

to enhance the alliance’s capability to meet new threats and diverse contingencies 

and, as a whole, will reduce burdens on local communities...’’ What about the burden that is to be transferred to communities here on Guam, which Defense Secretary Rumsfeld has clearly pointed out? 

EDUCATION 

The military needs to end the practice of education segregation on our island. Allowing DODEA to continue running a separate school system perpetuates the notion 

that somehow the local system is not good enough for the military community. It 

encourages animosity between military and civilian families and further confirms 

the existence of two communities, living on one island, under the American flag, 

separated by a fence. While I concede that our education system is less than perfect, 

this should never be used as a reason to segregate an American community. This 

backwards policy flies in the face of the good works done by great Americans such 

as Martin Luther King, and Presidents Kennedy and Johnson who fought for equality in education for all regardless of their race, religion or creed. The millions of dollars spent on the Guam DODEA schools should be instead used to bolster the local 

educational system and help us turn it around so it can benefit all the children on 

Guam, civilian and military. 

The existence of DODEA schools also exacerbates an existing problem with shortage of teachers on Guam. Often, the teachers that are employed at the DODEA 

46

schools come from the same pool of teachers that GPSS depends on to teach at our 

local schools. It has even come to the point that DODEA is hiring away teachers 

from GPSS. We can’t blame the teachers for leaving GPSS, often the choice to teach 

at DODEA is one of economics. There is no way that the local government can compete with the resources of the U.S. military, and it should not be allowed to compete 

with the community. 

When the military population increases, more of our teachers at our public schools 

will migrate to fill the needs at the DODEA schools. Where will that leave our public schools? Congress should be made aware of this situation and make the necessary policy changes to assist all of its citizens and not just those inside the gate. 

There have been many discussions about Guam being the ‘‘Tip of the Spear’’ and 

that Guam is of the highest strategic value and of great importance to the mission 

of the United States in regional security and national defense. There is no doubt 

that there will be numerous debates and discussion both in Congress and in the 

Pentagon which will affect Guam and for which our people need a voice. As a U.S. 

Territory so far removed from the mainland, oftentimes our issues and concerns fall 

on deaf ears. This is why this oversight hearing on Guam means so much to the 

future of our island. It will be decisions made in Washington D.C., in part through 

input from this subcommittee that will determine the direction of Guam for decades 

to come. All we want is to be part of that decision making process and ensure that 

any negative or positive impact on Guam resulting from the buildup be shared and 

the burden carried by all that call Guam home. 

Si Yu’us Ma’ase and thank you! 

Mrs. CHRISTENSEN. And now the Chair recognizes Mayor Savares 

for her testimony. 

STATEMENT OF THE HONORABLE MELISSA SAVARES, MAYOR, 

DEDEDO, GUAM, PRESIDENT, MAYORS’ COUNCIL OF GUAM 

Ms. SAVARES. Hafa Adai, Chairman Christensen and Congresswoman Bordallo. I am Mayor Melissa Savares, Mayor of Dededo, 

as well as the President of the Mayors’ Council of Guam. As the 

Mayor of the most populated village on island, I welcome the arrival of the Marines to my community. 

We did have NCTS at one time as the Navy base with over 400 

personnel, and now they’re reduced to less than 30 active duty personnel. 

There are several villages that will be affected by the movement 

of the Marines to our island. However, Dededo will see the most 

activity with NCTS, South Fin Housing and the Northwest Field 

areas being located within the municipality. With this, there are 

several concerns that I will address today. 

The increase of vehicle traffic throughout the entire island on our 

major roadways is definitely a concern by all residents. The daily 

morning and afternoon commute to and from work for most residents is on Marine Corps Drive from Naval Station to Andersen 

Air Force Base. Alternative routes must be designated to alleviate 

this traffic congestion on our island’s roadways. The Department of 

Public Works is currently working to identify Federal highway 

funds to use to upgrade the infrastructures that we currently have. 

The utility services provided to current residents are being upgraded to better serve our growing communities. The concern that 

I have is that we still—the water services that are being provided 

to the Navy bases, as well as the Andersen Air Force Base, are still 

coming through Fena, and that’s ComNavMar operating their 

water services. 

What about the outside community? The water services that we 

get in our homes, to our villages, to our residents, will that also 

47

be upgraded through the formation of the upgrade of the infrastructure? 

OK. We will see the increase of military personnel utilizing not 

just on base. Many of them will choose to also live off base. So, we 

need to upgrade the current facilities that we also have with GWA. 

The current power system is being worked on with the CCU, and 

Mr. Sanchez will address that. 

I would like for the military to also, like I’ve said, many of them 

would be living off base in our own communities, and they will be 

using our infrastructure as well. Exercises being done by the Marines often take place at the Northwest Field and the Andy South 

Housing Areas. Residents in the northern area of Guam, of course, 

will have concerns about the times of these exercises. 

Like Senator Won Pat, three mayors also went to Okinawa last 

year and observed the concerns that the local community had with 

the exercises of the helicopters and the jets coming in during the 

evening hours. The concern that I have is, are the residents going 

to be able to sleep at night or be worried, be waken up by the noise 

from the helicopters and the jets coming in? Can these exercises be 

limited to a certain time and not occur from 10:00 p.m. to 6:00 a.m. 

for the sake of the nearby residents? 

The families that have access to return Federal lands that have 

been developed by original land owners and has been opened back 

for regular traffic for several years, have businesses and allow families to actually access their properties. One concern is, the Route 

3A access to Urunao and Ritidian, I know that there’s going to be 

a current upgrade in the Northwest Field. Family members in the 

past had, before the return of their lands, had to get base clearance 

in order to access their properties at Urunao. Will this be restricted 

again and taken away from them? 

There is a resort, a business resort in the area. We don’t want 

the customers to the resort—not just the tourists but the local 

community as well—to be restricted and have to obtain base passes 

to Route 3A to access their properties. 

It is evident that we will also see an increase of foot traffic 

around many military bases, most specifically, around the Naval 

Hospital area and the NCTS area. The concern is, will there be infrastructure as far as sidewalks are concerned? There will be a lot 

of foot traffic coming on and off base to walk to the stores and 

nearby malls. Will the military, the Federal Government help with 

the infrastructure as far as sidewalks are concerned? 

In addition, with the increase of residents living in our community, first-time homeowners wanting to purchase homes in the villages, with the population exceeding 20,000 residents, do not qualify for USDA Home Loan Programs. I’ve requested through Congresswoman Bordallo’s office, back in March, that the insular areas 

be exempted from that 20,000 cap. 

With the expectance of 8,000 Marines and their families to our 

communities, more homes are being built and of course the prices 

of homes are rising, becoming less affordable for our local families 

to buy. With this exemption, our families and our communities will 

be able to purchase affordable homes under the USDA Affordable 

Home Loan Program. 

48

As President of the Mayors’ Council of Guam, I, along with my 

colleagues, welcome the Marines to our island and know that our 

island and our families will benefit tremendously with the investment of the military that the military will make on Guam. 

I express with my heartfelt appreciation to the Committee on 

Natural Resources for allowing us to testify on behalf of our communities. Thank you. 

Mrs. CHRISTENSEN. Thank you, Mayor. 

[The prepared statement of Mayor Savares follows:]

Statement of The Honorable Melissa B. Savares, President,

Mayors’ Council of Guam, and Mayor of Dededo 

Chairwoman Christensen and Members of the Subcommittee on Insular Affairs, 

I am Mayor Melissa B. Savares, Mayor of Dededo and President of the Mayors’ 

Council of Guam. As Mayor of the most populated village on the island, I welcome 

the arrival of the Marines to our community. 

There are several villages that will be affected by the movement of Marine to our 

island. However, Dededo will see the most activity with the NCTS, South Finegayan 

Housing and Northwest Field areas located directly in the municipality. With this 

there are several concerns that I will address. 

The increase of vehicle traffic throughout the island on the major roadways is 

definitely a concern by all motorists. The daily morning and afternoon commute to 

and from work for most residents is on Marine Corps Drive from Naval Station to 

Andersen Air Force Base. Alternative routes must be designated to alleviate this 

traffic congestion on our islands roadways. The Department of Public Works is 

working with the federal government to use federal highway funding to open other 

routes to address this traffic problem. 

The utility services provided to current residents are being upgraded to better 

serve our growing communities. Will the increase of military personnel use the existing utility services provided by the Government of Guam or will they be dependent on the services now provided by ComNavMar? I would like for the military to 

use the same utility services that we, the residents of Guam use daily in our homes. 

Exercises done by the Marines often take place in the Northwest Field, Andersen 

Air Force Base and Andersen South Housing areas. Residents in this northern area 

of our island are concern about the time of these exercises and if they will be disruptive during all hours of the day. The concerns are of the helicopters and jets flying 

over the residential areas in the late evening hours. I was part of a delegation that 

traveled to Okinawa in July 2006 to meet with local leaders to hear the concerns 

that they had in their communities. One thing that I was concern about was the 

noise from the helicopters and airplanes flying over the residential areas in the late 

hours of the night. Exercises such as this should be restricted and not be allowed 

between the hours of 10:00 p.m. and 6:00 a.m. 

The families that have access to return federal lands that have been developed 

by original land owners has been opened to regular traffic for several years. Will 

this access be closed to original landowners and businesses within the area? The 

area of concern is the Northwest Field area also known as Route 3A. Before the return of federal lands, there was a guarded sentry for landowners to request for access to their properties. The restriction of access to Route 3A should be allowed from 

6:00 a.m. to 8:00 p.m. 

It is evident that we will also see an increase of foot traffic around all military 

bases. Would there be sidewalks constructed around all bases to assure the safety 

of all personnel, their families and others accessing these facilities? The concern is 

around the Naval Hospital and NCTS areas. The close proximity of areas such as 

schools, stores and recreational facilities will allow for more people to walk to and 

from places. 

As the President of the Mayors’ Council of Guam, I welcome the Marines to our 

island community. I know that our island and our families will benefit tremendously 

with the investment that the military will make to Guam. I want to express my 

heartfelt appreciation to the Committee on Natural Resources for allowing me to 

testify on behalf of the people of our community. 

Mrs. CHRISTENSEN. Now the Chair recognizes Mr. Sanchez for 

five minutes. 

49

STATEMENT OF SIMON SANCHEZ, CHAIRMAN,

CONSOLIDATED COMMISSION ON UTILITIES 

Mr. SANCHEZ. Chairwoman Christensen and Congresswoman 

Bordallo, Governor Camacho, Honorable Senators, and Mayors, and 

our other distinguished guests, and my dear people of Guam, I’ve 

had the honor to serve our people as a senator and now as Chairman of the Consolidated Commission on Utilities. The CCU is the 

elected governing board that oversees the operations of the Guam 

Power Authority and the Guam Waterworks Authority. 

GPA is the sole supplier of power on Guam for all civilian and 

military needs. GWA provides all the water and wastewater services to the civilian community and wastewater services to the Air 

Force and NCTAMS, Guam. 

Guam’s planned military buildup will impact the lives of everyone who lives on Guam, both resident and military. It will test all 

of our abilities to plan, collaborate, and deliver. 

We all share a historic opportunity to improve the quality of life 

of all the loyal American citizens of Guam while positioning Guam 

to play a larger role in the defense of our country. Making Guam 

better will make our country better and safer. The recent change 

in National Defense Policy will bring an estimated $15 billion in 

military expansion to Guam. 

Guam today does not have the resources necessary to accommodate this expansion, nor should it be expected to. Initial estimates 

suggests $1-$2 billion will be needed for Guam to successfully absorb this military buildup. Japan has committed $6 billion for the 

expansion. DOD will ask you and the Congress to commit another 

$4 billion. So far, no one has committed any funding to the people 

of Guam. 

We have been told that none of the Japan or DOD funds may be 

available to Guam outside the gate. Yet the military buildup cannot become a new burden to Guam’s current population. 

I recall the decision from another seminal change in our country’s public policy, regarding racial segregation, that reminded us 

that ‘‘separate is not equal.’’

It is our duty as Americans to ensure that the military expansion 

does not separate local and military residents. Our goal must be 

that the quality of life on Guam will improve for all the citizens 

and residents, regardless of whether they work or live in our villages or on base. 

I’ve provided the committee with more detailed discussions that 

identify almost $800 million in power and water projects which are 

impacted by the military expansion. Our position is simple. For an 

island of only 210 square miles, there should be single integrated 

infrastructure systems providing reliable, efficient services to all 

residents of Guam, civilian and military. 

GPA should continue to be the sole provider of power on Guam. 

We should maintain existing Federal law that requires the military 

to become a full customer of GPA and get out of the power business. GWA should provide water and wastewater services to the 

new Marine base, and eventually operate all the Navy systems, 

just as GPA took over the Navy power systems. Here’s why: It will 

require less U.S. tax dollars to fund the incremental cost to imVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00053 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
50

prove and operate single integrated utility systems instead of building and maintaining separate ones. 

The funding needed to build and maintain a separate DOD 

power system to serve only 20 percent of the total island demand 

would be better spent on upgrading the entire transmission and 

distribution system benefiting both civilian and military ratepayers. GPA has the demonstrated ability to manage the entire 

system, relying on its own resources as well as using effective private partnerships to provide management and financing. As Guam 

grows, more customers paying for a single system will help keep 

rates more stable and affordable for all customers. Even today, 

Guam’s power rates are lower than all of Hawaii. Separate power 

systems will only increase cost. 

GWA has successfully turned around as operating and financial 

performance, recently meeting U.S. EPA’s Safe Drinking Water 

Standards and raising over $100 million for improvements. GWA 

also utilizes a private partnership to operate its wastewater system. 

Like GWA, DOD is investing hundreds of millions to rebuild its 

aging water and wastewater system. But GWA provides its services 

at nearly half the cost incurred by the Navy, thus providing an opportunity to eventually lower the cost of water for both civilian and 

military residents. 

GPA and GWA already are committing current ratepayer financial resources to upgrade existing infrastructure. The idea should 

be to leverage local, Federal, and Japan monies in shared investments to upgrade and expand the utility systems to serve Guam’s 

future growth. 

When Japan originally agreed to accept the Marine base on Okinawa, it invested hundreds of millions to make sure its civilian 

community would also benefit. We should expect no less from our 

own country. America must step up and ensure that Guam receives 

funding for the impacts caused by the military buildup. When DOD 

stands before the Congress and ask for its $4 billion, Guam’s impact needs must be addressed at the same time. There should be 

no funds separately appropriated for DOD without also funding 

Guam’s impact needs. Separate is not equal. Instead, let us unify 

our tremendous resources and abilities and goodwill to do what is 

good for Guam because it also will be good for our country. 

You will find a no more patriotic, loyal and deserving group of 

citizens than right here on Guam. The Americans of Guam have always shared in the sacrifices of our country. Right now, a Guamanian, a Chamorro, a resident of the Western Pacific, is defending 

our national interest and risking their lives throughout the world. 

The Americans of Guam must now also share in the new prosperity 

that our new defense responsibility protects. 

Si Yu’us Ma’ase. 

[The prepared statement of Mr. Sanchez follows:]

July 31, 2007

The Honorable Donna M. Christensen 

Chairwoman 

Subcommittee on Insular Affairs 

Committee on Natural Resources 

The United States House of Representatives 

Washington, D.C. 20515

51

Chairwoman Christensen and Committee Members 

Honorable Members of Congress

Hafa Adai and welcome to Guam. 

I am Simon Sanchez, and I have had the honor to serve as Chairman of the Consolidated Commission on Utilities (CCU) since 2003. The CCU is the elected governing board that oversees the operations of the Guam Power Authority (GPA) and 

the Guam Waterworks Authority (GWA). GPA is the sole supplier of power on 

Guam for all civilian and military needs. GWA provides all the water and wastewater services to the civilian community and wastewater services to the Andersen 

Air Force Base. 

We are very happy to be discussing the impact of our country’s planned military 

buildup right here on Guam where the impact will be felt in our homes, our villages 

and in the daily lives of everyone who lives on Guam, both resident and military. 

The many challenges facing our community will test all of our abilities to plan, 

collaborate and deliver the results and the vision we all share for an even better 

Guam and a safer country. 

We all share a historic opportunity to position Guam to play a larger role in the 

defense of our national interests while also improving the quality of life of all the 

loyal American citizens of Guam. 

It is yet another opportunity for Guam to proudly assume its new obligations to 

defend our national interests, a duty our people have performed with legendary 

honor and sacrifice. Even at this moment, a Guamanian American is risking his or 

her life in a battle zone with our other fellow Americans so that we can build a better Guam and a safer country for generations to come. 

It is yet another opportunity for Guam to move forward as a greater showcase 

of free enterprise and economic progress, located at America’s doorstep to Asia. 

Guam’s hard working and industrious people have withstood war, natural disasters, 

and economic uncertainties. Guam’s economy, since it was destroyed in World War 

II, has always been tied to the changing interests of our country’s defense policy. 

A strong and prosperous Guam has always resulted from a strong national defense 

policy. 

Guam is a special place. And this is a special time. We have a chance to do this 

right for the common good. 

There are those who do not support this military expansion and there are many 

unanswered questions. 

Our ultimate success will depend on how well we realize the opportunities we 

know are possible by not letting the many challenges divide nor conquer us. 

Our country recently forged a change in national policy that asks the good people 

of Guam to play an even larger role in the defense of our nation. An estimated 

$15 billion in military expansion, the largest move of military assets since World 

War II according to military officials, is slated to turn Guam into the ‘‘spear’’ for 

our country’s defense in Asia. 

The concern of the people of Guam is that we don’t get the ‘‘shaft’’ while also becoming the spear. 

The relocation of Marines from Okinawa to Guam as well as the expansion of the 

existing Navy and Air Force presence will change Guam dramatically. It will add 

twenty five percent more people to Guam in the next six years, about 40,000 folks. 

Normally, this amount of population growth would take twenty years. Now we 

must accelerate all the projects and efforts that will be required to absorb this 

growth in a compressed six year timeline. Remember, of the 40,000 new residents, 

half are projected to live ‘‘outside the gate’’ in the civilian community. The military 

expansion will not only affect Guam’s military community. It will affect all the people of Guam for the foreseeable future. 

Guam today does not have the resources necessary to accommodate this level of 

military expansion nor should it be expected to. Initial estimates are between 

$1 billion to $2 billion will be needed for Guam to successfully absorb this military 

buildup in such a short time frame. 

Japan has committed funding to the base relocation to Guam. The Congress already has committed funding to upgrading and expanding existing military facilities 

on Guam. It is our understanding that the Department of Defense (DOD) will ask 

Congress to commit anther $4 billion to be spent on Guam as part of the new bilateral defense agreement. 

So far, it seems there is money to be spent for military plans ON Guam but there 

has yet to be any money intended to be spent FOR the civilian community of Guam 

to be able to address the impacts and the requirements of the buildup. 

52

We have been told that none of the Japan or DOD funds may be available to 

Guam, or if it’s available, it may only be used to improve infrastructure and services 

on base but not ‘‘outside the gate’’. 

We are working with DOD and other federal agencies to plan for this move and 

determine the best way to insure that everyone benefits. DOD officials have talked 

of supporting our requests for federal assistance while seeking their own funding. 

Today the people of Guam are speaking for themselves, asking you, the representatives of our country to stand with Guam and for Guam in order to serve and protect the interests of all Americans. 

All these collaborative efforts to support the military buildup will not work if benefits only accrue ‘‘inside the gate’’. For our country to win, all of Guam must win—

and that means BOTH the resident people of Guam and our longstanding military 

partners. 

We are asking you to determine ways to fund the resulting impacts from the 

buildup on Guam’s public services and infrastructure. And we will need that help 

sooner rather than later. 

I recall the words from another seminal change in our country’s public policy, regarding racial segregation, that ‘‘Separate is not Equal’’. It is our duty as people of 

good will to insure that we have one community of Guam, which allows the benefits 

of being an American to flow equally to all Guam’s residents, civilian and military, 

while still securing our national interests. 

Power, Water and Wastewater Impacts and Challenges 

I’ve provided the committee with the summary reports from our power and water 

utilities that identify almost $800 million in projects which are impacted by the 

military expansion. This information is also being shared in even greater detail 

amongst the many interest groups working on the planning of this expansion, including frequent visitors from Japan who are performing their own due diligence. 

Our general position on these proposals is simple because they make the most 

sense for the people of Guam and the American taxpayers 

The Guam Power Authority should continue to be the sole provider of power services on Guam. We should continue federal policy established by U.S. Public Law 

100-202 that the military should become a full customer of GPA and not a co-operator or competitor. 

The Guam Waterworks Authority should provide water and wastewater services 

to the new Marine base and eventually operate the Navy systems which are currently outsourced. Most importantly, the protection of the northern aquifer which 

supplies 70% of the water on Guam (including military populations) will require a 

united and well coordinated effort between GWA and the federal government to insure its permanent security and sustainability. 

We don’t take these positions lightly. But we are convinced that the wisest, most 

economic and secure foundation for Guam’s growth and the planned military expansion results from some of the following reasons: 

• A single power grid as currently exists, with the appropriate upgrades at the 

correct time will insure the power system will grow with Guam in terms of capacity and reliability. For the military to build a whole new power system to 

serve its 20% of total island demand does not make economic sense. That same 

money would be better spent on upgrading the entire transmission and distribution system, benefiting all. GPA has identified about $150 million in projects 

that will upgrade and rebuild the island-wide transmission and distribution system to improve reliability. 

• The need for significant additional power generating capacity is not needed 

until after the Marine base is opened and will require only incremental additions of capacity instead of the large amount of primary and redundant capacity 

that would be needed for an entirely separate DOD system. 

• GPA has the demonstrated ability to manage the entire system, relying on its 

own resources as well as using private partnerships to provide management and 

financing. Today, all of GPA’s generation utilizes some form of public-private 

partnership. GPA will use appropriate management and financing tools to improve service reliability cost effectively. 

• As Guam grows, more customers paying for a single system will help keep rates 

more stable and affordable for civilian and military customers alike. Even 

today, Guam’s power rates at $.18 per KWH, are lower than all of Hawaii.. 

• Like the Guam Waterworks Authority, the DOD is his investing hundreds of 

millions of dollars appropriated by Congress to rebuild and upgrade its aging 

water and wastewater facilities for the Navy and Air Force. GWA has successfully turned around its operating and financial performance and now offer its 

53

customers, quoting from U.S. EPA’s 2005 report, ‘‘the cleanest and safest water 

in decades’’. 

• Furthermore, investor confidence allowed GWA to raise its first $100 of an initial $250 million to rebuild its aging systems. GWA also utilizes a public private partnership to operate its wastewater system, just as the Navy outsources 

the operations of its water and wastewater operations. GWA also produces 

water at lower costs than the Navy, providing an opportunity to lower the cost 

of water for both DOD and Guam residents. 

• The Marine base will be located a few miles from GWA’s largest waste water 

plant in the north, which already serves the Air Force. Obviously, it would 

make more economic sense to have the military expansion provide the incremental cost to increase the existing plant’s capacity to serve the Marines than 

to build a whole new plant. GWA is currently spending $9 million on a new 

outfall as well, a significant cost that can be avoided by DOD. These savings 

instead can be used to upgrade GWA’s systems that will serve the increased demand from the population surge supporting the base relocation. 

• The Northern Aquifer will require special attention since it is the shared supply 

for Guam residents and the Air Force, and probably the Marine base. Its longterm sustainability is therefore equally critical to the people of Guam and our 

defense interests. Pending U.S. EPA decisions will require a collaborative approach to insure Guam’s primary water supply is always clean, safe and secure. 

• Over the years, GWA and Navy water systems have crisscrossed Guam from 

north to south. There are opportunities to better share water resources to lower 

distribution costs by allowing GWA to serve Navy customers in some areas in 

exchange for Navy serving GWA customers in other areas. 

• Both power and water utilities are committing ratepayer financial resources to 

funding future growth, albeit at a much slower pace than is envisioned by the 

Marine re-location. Both utilities plan to provide some of the financing to upgrade existing systems. The idea is to leverage both local and federal monies 

when shared investments serve mutual interests instead of separate ones. 

These are the most prominent of many good reasons to develop a single plan for 

Guam’s power, water and wastewater systems to serve the military buildup and 

share benefits and costs. 

Timing Requires Action Now 

Each passing day, the planning and funding for Guam’s requirements from the 

buildup is becoming more and more critical as to whether we ultimately succeed or 

fail to get this right from the start. 

The military expansion will impact Guam long before a Marine base is opened. 

At least 15,000 workers are projected to be needed to build the base beginning in 

2010. All these workers will live ‘‘outside the gate’’ in the civilian community. This 

means they will impact our roads, hospital, public safety and other public services, 

power, water and wastewater resources. 

These impacts are a direct result of the military buildup and require the federal 

government to contribute to pay for the impacts instead of forcing the cost of these 

impacts on the current residents of Guam. More importantly, monies can be used 

to mitigate short-term impacts and provide longer term support for Guam’s growth. 

For example, it is estimated GWA will need to add up to sixteen wells to support 

this immediate growth with an additional 20 MGD. The cost of these wells should 

be borne by the expansion. 

Furthermore, the wells will remain after the construction surge and then can be 

used to support the permanent residential population that comes with the actual relocation. Remember, 20,000 new Guam residents are expected to live ‘‘outside the 

gate’’. Investing once in these upgrades serves both military and civilian growth 

needs caused by the expansion. These are the kinds of ‘‘win-win’’ plans that wisely 

fund and merge the dual goals of improving Guam and improving our national security. 

But if we don’t build those wells now, we won’t have enough water to support the 

surge in worker population needed to build the base. 

As we continue to develop the Guam master plan to handle the military expansion, hundreds of examples like this emerge. Many of our challenges have a corresponding opportunity that can better serve both Guam residents and DOD future 

interests. 

Guam will need professional and financial assistance NOW to make these opportunities realities, during construction and after the actual relocation of military 

expansion. 

54

Investing the Federal Government’s ‘‘Fair Share’’ in Guam is investing in 

America’s future 

As these projects get fleshed out, we will be able to better determine the direct 

impact of the military expansion. It is this direct impact that the people of Guam 

will look to the federal government to pay for its ‘‘fair share’’ for the impact that 

this change in national policy creates on Guam. 

When Japan originally agreed to accept the Marine base on Okinawa, it invested 

hundreds of millions in infrastructure in Okinawa to make sure its civilian community would also benefit. We should expect no less from our own country. 

Our country must invest in Guam for the good of the country. 

Had this magnitude of military buildup occurred in any of the fifty states, you 

know your good offices would be inundated with the same types of concerns and requests we echo today. 

Guam should not be treated any different than any other American community. 

But we will need leaders like you to provide the voice for the good and loyal 

people of Guam in the halls of the federal government where we do not have a direct voice. 

Our country, as represented by a President and Congress for whom we cannot 

vote, yet for which we sacrifice daily defending her freedoms and cherished institutions, must step up and represent the interests of the people of Guam by insuring 

Guam receives its fair share of the impact of the military buildup. 

We must unite as good Americans to get this right for Guam. You will find a no 

more patriotic, loyal and deserving group of citizens than here on Guam. Last 

month we celebrated our 63rd year of liberation from occupied forces in World 

War II. And who joined us to celebrate our freedom? The Marines and their marching band. 

The people of Guam have always welcomed our military neighbors. We appreciate 

all the hard work and sacrifice that occurs in the defense of our country because 

our families also pay the same steep price for freedom. When freedom rings on 

Guam, it rings throughout the island and its sound is as sweet or sorrowful inside 

and outside the gate. 

We have an opportunity of a lifetime to move Guam forward and protect our country. But we will need your help now more than ever to get it right for Guam. 

Thank you for your time and for your help.

Senseramente’

Simon A. Sanchez II 

Chairman

Mrs. CHRISTENSEN. I thank the panel for their testimony. 

I’ll recognize myself for questions. 

Governor Camacho, thank you for your testimony. And near the 

end you say that our people must be viewed as relevant and important stakeholders and equal partners. Do you feel that that’s the 

case today? 

Governor CAMACHO. I recognize that as a territory, we are part 

of the United States of America, and bilateral discussions and 

agreements, decisions that have yet to be made are ongoing between DOD and the Government of Japan. 

But if I can just reflect on what Simon had mentioned, decisions 

that will be made, for example, with our utilities, I know that the 

Government of Japan, under the Special Project Entities, or SPEs, 

will be devoting a large amount of money, as mentioned 

$700 million specifically for water, power, wastewater, and other 

utility requirements. 

Decisions ought to be made with input from the Government of 

Guam, specifically the Commission on Utilities, in an integrated 

process, instead of just building specifically or directly within their 

fence line. 

We have an infrastructure in place right now, and I believe that, 

as Simon had mentioned, a shared investment that can be leveraged, and the shared investment between the Utilities of Guam or 

55

the Government of Guam, the Department of Defense, and the 

Government of Japan would be beneficial to all. It is in matters 

like that, that I believe would be where it explains how we are a 

part and should be relevant in those discussions. I believe that at 

this point, we have not been. 

Mrs. CHRISTENSEN. So, in your discussions thus far with the 

military, and I suspect that you have not had discussions with the 

Japanese——

Governor CAMACHO. No, we have not. 

Mrs. CHRISTENSEN —with the military. Do you find that they’re 

open to even discussing that possibility? 

Governor CAMACHO. Yes, I think that, right now, as mentioned, 

the master plan will not be finalized until July of 2008. It is still 

in the initial planning stages and a lot of it will be impacted directly, of course, by the Environmental Impact Statements or studies that are going to be had. 

There is room for an inclusion now. And I believe that Major 

General Bice and others will be open, BJ Penn and others, will be 

open for inclusion. 

I tell you, I have every intention, as Governor of the Territory 

of Guam, to go and visit Japan myself. I received an invitation 

from the Governor of Okinawa to come and see for ourselves what 

has happened and learn from that experience. But we go there 

with good intentions, not to undermine the plans or initiatives of 

Department of Defense, but rather to learn from what happened in 

Okinawa as a community, and take those lessons back here, and 

engage DOD, and engage the Government of Japan; in fact, even 

asking them to consider that as they negotiate with DOD to include or ask input from the Government of Guam, because we are 

the recipient or host country, if you will, although we are part of 

the United States. And so I think inclusion at this stage is vitally 

important. 

Mrs. CHRISTENSEN. Thank you. 

Senator, you mentioned a Brown University Study. You didn’t 

elaborate on it in your testimony. Could you just tell us a little bit 

about it? 

And do you think that the University of Guam could—we talked 

with Deputy Assistant Secretary Cohen about technical assistance 

dollars. I would believe that your University of Guam, just like 

ours, would be eligible to receive technical assistance funds directly. Do you think it would be a worthwhile project for the University of Guam to undertake a similar study? And, I don’t know 

what it was, but you referenced it, so I suspect that it has some 

relevance to this discussion. 

Senator WON PAT. Thank you very much for the question. 

Basically, the studies that are conducted are independent groups 

or universities, individual professors, who would do studies based 

on the military impact elsewhere. And based on what the EIS is 

going to do, we know that that’s going to be conducted on behalf 

of the military, so therefore there is going to be some biases there. 

What I was emphasizing was that I would like to, yes, have the 

University of Guam or an independent nonpartisan group basically 

do a study on not only the impact after the military’s been here 

but, more important, on what the government and the people are 

56

currently going through. So, we need to get an independent group, 

other than the ones tasked by either the Civilian Military Task 

Force or the joint committee. 

Governor CAMACHO. On that note, I would ask that, as you are 

well aware, I have established a Civilian Military Task Force, and 

we’ve done extensive discussions throughout the community, and I 

would ask that that be submitted for the record. Thank you. 

Mrs. CHRISTENSEN. Without objection. 

Governor CAMACHO. Thank you. 

Mrs. CHRISTENSEN. I now recognize Ms. Bordallo for her questions. 

Ms. BORDALLO. Thank you very much, Madam Chairman, and I 

thank the witnesses for their testimonies. 

Governor, my question is for you. In your testimony you mentioned that, and I quote, ‘‘I have pushed the Government of Guam 

to begin the process of directing capital improvements throughout 

our island.’’

Can you please elaborate on what projects you are pushing 

through on a local level that are associated with the military buildup, and also can you elaborate for us on the process you are using 

to prioritize local projects that can be completed to improve infrastructure before the Marines arrive in Guam? 

Governor CAMACHO. All right. Thank you very much. Thank you 

for that question, Congresswoman Bordallo. 

We, recognizing that the military buildup was coming and agreements were made, I pulled together the Commission on Utilities, 

which represents water and power and wastewater, Department of 

Public Works, which represents all our roadways, the Port Authority, the Airport Authority, every relevant agency that provides not 

only the infrastructure, but social services, such as police, the hospital, education. And we grouped together their existing master 

plans or whether it be a 10-year or 20-year plan, and totaled up 

the combined impact in the areas that we anticipated the buildup 

to occur, which is up North and other developments in Andersen, 

and of course down in Naval Station. 

All told, we have come up with a tally of roughly about $1 billion 

or $1.1 billion, combined. And these are, again, a summation of 

what we believe needs to be done over the next few years. 

What has, I guess, brought the sense of urgency now is the desired completion date of the military buildup by 2014, that will 

have an impact on the island also. And so it compresses the 

timeline for completion or at least the initiation of these projects 

that must occur. 

Word was made or—the testimony by Major General Bice, for example, on the Port Authority of Guam. Although they’ve had a 

master plan for many years, it has been stalled in initiatives even 

to purchase cranes. And now the urgency in getting them upgraded 

and equipped and trained to receive the input of goods that will 

flow through the port for the buildup has been greatly compressed. 

And so the need to basically deal with this is very, very urgent, 

and so it is in that light that I mentioned that. 

Ms. BORDALLO. Thank you, Governor. 

I have another question. As you know, the Department of Defense has stated that the on-island capacity for construction spendVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00060 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
57

ing is around $400 million a year, and I believe that we must fully 

utilize and develop our own workforce locally before relief is sought 

with foreign labor in the midst of this buildup. I’m very conscious 

of this particular aspect. 

So, can you elaborate on the programs in place and that are 

planned by the Government of Guam to train local citizens for the 

future construction and trade jobs that will inevitably arrive with 

the buildup? 

Governor CAMACHO. Well, I appreciate that, and I think it is a 

two-part answer. 

First of all, I had a discussion with the local contractors and Department of Labor last week, and it was about—actually, it was 

prior to their departure to Washington for this IGIA meeting. The 

local contractors, I believe, anticipate that the Government of 

Japan will form consortiums of their major construction firms with 

large U.S. corporations or construction companies. 

I have been witness to many visits to my office where they are 

beginning to form, either formally or informally, consortiums of different companies that will bring resources into Guam. They do feel 

though that, the local contractors feel that they will have an opportunity and that every single worker will probably get subcontracted 

work out to them. 

The ability for our Department of Labor, working with the existing programs right now to properly train the workers in the required timeline, I think it is going to be stressed. We do need to 

combine our efforts under Department of Labor, working with the 

Republic of Palau, with FSM, the Republic of the Marshalls, to find 

ways to properly train them. 

Right now, the construction industry has put together a training 

program and apprenticeship program, as you know, but the number of participants right now is quite low. So, there is going to be 

a need, we believe and they believe, to allow for imported labor. 

Again, to maximize the opportunities for our local people and train 

them, in addition to any other migrants that may come in from Micronesia, will be a big challenge, and I believe they can only handle 

so much. We don’t know the exact number. So, there is going to be 

a definite need to bring laborers in from perhaps the Philippines. 

And I know that you’re well aware of the restrictions we have 

and how can we work with the existing quotas and can there be 

some kind of—I guess, a waiver, as applied to the Territory of 

Guam, with a certain timeline, whether it’d be for a period of time 

until the buildup is completed or perhaps where construction would 

be maybe at a level of 250 million or less. At that point, at maybe 

a cut-off point. 

So you may establish timelines on when these waivers can be allowed for workers to come in. And I believe it is going to require 

very serious negotiations between governments, the Government of 

Guam, the United States Department of Labor, and whatever country that we negotiate to bring laborers in, be at the Philippines, 

where there are already trained and skilled laborers. But, we must 

not squander this opportunity though to train as many of our local 

people that are interested. 

And it also speaks to the regional approach that I believe we 

must undertake. At the meeting we had with the Pacific Island 

58

Leaders Conference in Washington, there was a strong desire by 

most of the Island leaders, not only in Micronesia, but Polynesia 

and even as far down as Melanesia, to join forces. The East-West 

Center that’s based out in Honolulu has agreed that they can undertake a study to see how feasible this is, and see what we can 

do. 

We also have the help of the Office of Economic Adjustment right 

now, and consultants KPMG, that’s being paid for by OEA money, 

which under DOD, to help us look at a broad scope of things and 

the big picture, incorporating labor and many other issues that are 

there. 

So, we are looking at every possible avenue. Thank you. 

Ms. BORDALLO. Thank you, Governor. How many training programs are in effect? I know I’ve have run into about three or four 

of them. 

Governor CAMACHO. Yes, as mentioned, the contractors have 

their own—they’ve established apprenticeship programs, even within the Power Authority——

Ms. BORDALLO. GCC. 

Governor CAMACHO. GCC has also. 

Ms. BORDALLO. Ship Repair Facility. 

Governor CAMACHO. Ship Repair Facility. 

I believe even Waterworks is eventually working on one. 

Mr. SANCHEZ. Already. 

Governor CAMACHO. Already. 

Ms. BORDALLO. Very good. 

Governor CAMACHO. And we hope to expand this to the Public 

Works, where we can get skilled laborers. But, it is going to have 

come to another level. There simply is not enough going right now 

and, interestingly, not enough interest from our young able-bodied 

men and women that can go into this field of construction. There 

doesn’t seem to be much of a local interest, and I think it is simply 

a matter of marketing and promoting——

Ms. BORDALLO. That’s correct. That’s correct. 

Governor CAMACHO —the opportunities that are there and available. 

Ms. BORDALLO. Thank you very much, Governor. 

I do have other questions, but—another round, all right. 

Thank you, Madam Chair. 

Mrs. CHRISTENSEN. Thank you. Thank you, Chairman Bordallo. 

Mayor Savares, there were recent exercises throughout the region, and some of it, of course, took place at Andersen Air Force 

Base. Did that raise any extra concerns that you—was anything 

that occurred during those exercises that may have raised some additional concerns? 

Ms. SAVARES. Not currently. As a matter of fact, in April, during 

the scoping meetings—there is always ongoing exercises with the 

helicopters in the Northwest Field area. And, of course, we were at 

the same time of the exercises, there was a function going on in 

the Agafa Gumas area, which is up past Pods (phonetic) junction, 

and I did ask the officials that were there, at the end of the day, 

‘‘Were you bothered by the noise?’’ And they said, ‘‘What noise?’’ 

And I said, ‘‘Well, you know, we have the helicopters flying overhead.’’ And they did not realize it. 

59

But that was a concern in Okinawa. We went to the Fitama (phonetic) Overlook and, of course, the residential area was so close to 

the base that the exercises continued through late evenings. 

And I understand that there is an exercise right now with the 

ships in the area and the flights, of course, are—you have the jets 

flying over. It is not a concern right now, but of course with the 

buildup, it might be. That’s why the concern that we saw in Okinawa, and we heard from their community leaders, is that between 

10 p.m. and 6 a.m., the flights are still coming in, with the helicopters, the jets, and so we don’t want that to happen here. And 

so, of course, that’s why we are bringing it up. 

Mrs. CHRISTENSEN. Thank you. 

Mr. Sanchez, in your testimony, you mentioned that you identified several hundred million dollars in projects for upgrading the 

transmission and the distributions system. Have you also identified 

any projects to help with energy efficiency and conservation, like 

renewable energy projects? And, do you think that that ought to be 

a part of the discussion as well, as you prepare? We understand 

your position very clearly on how the military buildup should go 

with regard to power, but what about renewable energy? 

Mr. SANCHEZ. It is probably our biggest focus for planning what 

the next base load should look like for Guam’s growth, which includes the military expansion. We’ve had a lot of good informal discussions with DOD, and we are looking at maybe 60 megawatts. 

You know, Guam has 550 megawatts now. We only used 260 

megawatts for peak demand. So, we have almost a 100 percent surplus capacity. Why? Because we can’t run a plug to another grid 

in Hawaii or California. So, you also have to have redundancy. 

And that’s why we talk about having two systems on a little 

island. It doesn’t make sense. We are doing an integrated resource 

plans study now. R.W. Beck, who happens to also be the consulting 

engineering group for the Japan Bank that will be loaning the 

$6 billion, is doing the study for us. And we are looking at coal, 

nuclear, wind, OTEC. 

I think the biggest challenge that we are finding in the preliminary analysis is, given the magnitude of need for Guam, wind, 

OTEC, oceans, they’re not efficient. They have a long way to go in 

terms of technology development to provide us 50, 60, 100 megs 

worth of capacity. 

Coal is emerging as a possible choice. It is great once you build 

it, but it is three to five times the cost to build it initially. When 

we say $800 million, $300 million of it is for a large coal plant, if 

we go in that direction. It is more expensive to build, much less expensive to operate. Of course, you’ve got the algorithm side of the 

equation, about going into coal at all versus the need for affordable 

power here. 

So, we are looking into those things and, as General Bice had 

mentioned last week in D.C. and then again today, DOD and Japan 

are having some discussions about power, and I asked the same 

question last week in D.C. that I’ll ask here in Mangilao, as the 

Governor said, when can the Guam Power Authority, who is the 

sole provider, when can we sit down? We have some ideas that we 

think can handle Guam futures growth with shared investments so 

we can keep rates lower. 

60

I think the other piece of a puzzle that we ask you to think 

about, DOD gets Congressional funding. There is no debt service on 

Congressional funding. They don’t pay back on bank 30 days later. 

And when we look at infrastructure, we are capital intensive businesses, and debt services becomes almost the biggest component, 

other than the oil piece of the puzzle. And we are hoping to take 

some of these monies that doesn’t have to get paid back to jointly 

invest and upgrading team transmission and distribution to build 

the next capacity that moves us in the directions of diversification, 

away from oil, and put our heads together, because we think, 

again, for a little island, there’s some real opportunities to leverage 

that money, but put it in the position where the people in Guam 

aren’t stuck paying back debt service 30 days after we get the 

money. 

That’s the challenge of using public-private partnerships in special purpose entities. They’re going want to pay back the 

$700 million that General Bice has identified. Our question is, is 

that all to be paid back through rates, and/or can some of that be 

invested where we are constantly forcing the ratepayers of Guam, 

both current and new, including the military? You know, they pick 

up 20 percent of the tab, so their power bill is affected as well, and 

your future appropriations that you have to give to DOD to operate 

on Guam get affected. 

So, we see some real opportunities if we can get collaborating on this $700 million that may be available on these alternative energies, where they’re going to put it, how is it going to be operated? 

We are happy to report one of our private partners is a Japanese 

power company. So, we are very comfortable and very familiar with 

working with SPEs, public-private partnerships, use at private financing. We’ve raised our own money. But those require immediate 

ratepayer repayment. And anything we can do to get some of that 

free Congressional money that DOD gets, without having to pay 

back debt service, helps the people in Guam afford this upgrade, 

and be able to better live their lives. 

Mrs. CHRISTENSEN. Congresswoman Bordallo. 

Ms. BORDALLO. Thank you, Madam Chair. I have a few more 

questions of Senator Won Pat. 

I’d like to address this to you, since you are the sole representative here from the Legislature. I hope you’ll be able to answer it. 

How will the locally identified priorities by the executive branch 

with respect to the buildup be addressed by the Guam Legislature 

within the annual budget process, and are there any special considerations being given in terms of altering the budget process or reviewing such priorities on a separate track? 

Senator WON PAT. Thank you for that question. 

Being a former senator, of course, in the Legislature of Guam, 

you know, the Governor of Guam normally submits the budget for 

the executive branch. And they basically set the priorities in terms 

of the executive branch, and what we do would be then to 

reprioritize some of those requests. 

I believe that the Legislature needs to really look and change its 

thinking, of course, in how we prioritize our spending. I’ll have to 

say, however, that with the low economic status of the island of 

Guam, we don’t have that much money basically to earmark for 

61

specific projects, such as power or the utilities, much less the landfill that we need to close down. 

What this would actually mean for the Legislature would be to 

go out and take out bonds, and a majority of the senators right now 

are not in favor of mortgaging the future generations of Guam. 

That is the reason why our approach is to look to the Federal Government instead for assistance. 

Ms. BORDALLO. So, rather than working with the executive 

branch when they set their priorities, you say they are not really 

cooperating or—is that what you’re telling us? 

Senator WON PAT. No, they’re—(Laughter). 

Of course—you really are putting me on the spot, aren’t you? 

(Everybody laughs). 

I’m in the minority. OK? 

Ms. BORDALLO. I know. 

Senator WON PAT. So——

Ms. BORDALLO. I don’t think you heard me. 

I said, I hope you can answer this question since you’re the sole 

representative——

Senator WON PAT. Yes, I did. 

Ms. BORDALLO —of the Legislature here this morning. 

Senator WON PAT. That’s true. And even within—I’ll be very honest, of course, even within the Republican Party, there’s a rift, and 

I’m surely not going in there at all. I’ll leave that up to them. 

Governor CAMACHO. I don’t know of any rift. 

[Laughter.] 

Governor CAMACHO. We are having fun here. 

Ms. BORDALLO. Thank you very much, Senator. You’ve been very 

brave here. But, thank you, thank you. 

Mayor, I have a question for you. Can you explain the ways in 

which the mayors are working together in preparing for the buildup? I know you’ve been very supportive all along and your village, 

your area of the island will be most affected. 

In what ways do the residents of Dededo today interact with 

their neighbors at NCTS and Andersen Air Force Base, and are 

there goodwill and sister village relationships? I know they’ve been 

going on for years, but I’d like to get your comments on that. How 

are the communities interacting as one, and in what areas do you 

think community relations can be improved? 

Ms. SAVARES. Currently, we have a very strong Sister Village 

Program with our military counterparts throughout the bases and 

the villages in the island, around the island. 

We, most recently of course with the preparation of the schools, 

a lot of the Sister squadrons did come out to assist with grass cutting and painting of several of the schools throughout the island. 

Mayor Lizama, this past Liberation, had one of his squadrons, 

his Sister squadron, participate with him in the village float competition, and they had one of their small model aircrafts on it, and 

they won first place on the village floats. 

So, of course, the community ties with the squadrons and our 

Sister Village Program continues, and they continue to grow within 

the communities. 

Of course, the culture in the northern area, we are trying to 

build that back up. We are currently working this past summer, 

62

Yigo and Dededo worked together with Paa Taotaotano to get our 

kids, and our members of our community, to interact culturally 

with learning how to weave, so that when we interact with our 

military Sister Village Programs, we can teach our people also, or 

our counterparts, how to weave, chant. 

We had a presentation at the mall last week and, as part of 

Mayor Lizama’s program, he had 13 Andersen Air Force Base children participate in his summer program. They were chanting and 

dancing the Chamorro chants and they were also weaving. 

So, the interaction as far as keeping, preserving our culture, 

northern area of Dededo, Yigo are currently trying to emphasize on 

a stronger bond with it, and then also share it with our community, 

Sister Village Programs, and then the interaction with them coming off base to actually assist us with current projects that we are 

working on. 

Like I said, the preparation of the schools, that will continue. 

Ms. BORDALLO. A quick follow up, Mayor. 

Ms. SAVARES. Yes. 

Ms. BORDALLO. Would you then say now, you’ve commented on 

the northern part, but would you say overall the village, mayors——

Ms. SAVARES. Yes. Merizo still has a very strong bond with their 

sister squadron, which is the Coast Guard, and the same with the 

other villages. Inarajan constantly every month does something. 

So, the villages, the mayors are very aggressive with their sister 

squadrons. 

Sometimes it depends on the Commander. They have a change 

in commanding officers, and the new commander may not be as aggressive as the one in the past. But the members still come out. 

I know, in my Municipal Planning Council, I have honorary members who are from, one from NCTS and one from Andersen. 

Ms. BORDALLO. Very good, Mayor. I know this program has been 

exceedingly fruitful over the years. I’ve known it for years and it 

has been very, very successful. 

I have a couple of questions for Mr. Sanchez. Do you—(pauses). 

All right. So, I yield back then to the Chairman. 

Mrs. CHRISTENSEN. Thank you. 

Let’s see. Governor—this question basically is for both Governor 

Camacho and Mr. Sanchez. Let me see if I can kind of put it together. 

And, Governor, you say we cannot be expected to cover unfounded mandates or other substantial requirements of this military expansion. And I wanted to talk about critical infrastructure 

and whether you’ve identified critical infrastructure. It would seem 

to me that some of them, and we’ve already talked about the utility, that’s a critical infrastructure, not only for you, but for DOD, 

and it seems to me that there should be some cost sharing involved 

there, as you’ve said. 

What are some of those critical infrastructure? What would be 

the top 3 that you would see that you would not be expected to 

cover as unfunded mandates, but that you would require substantial military assistance with? 

Governor CAMACHO. Well, I think definitely if you look down at 

Andersen and Naval Station, their capacity right now for their 

63

landfills is close to being exhausted. They’re going to need, along 

with the military base that will be established for the Marines, a 

place to dispose of their waste. 

The need and first of all the consent decree that we have agreed 

to as a government to shut down our current landfill, which has 

been in existence for close to 60 years or more, is very, very critical 

right now with certain timelines that had been established, that 

have come and gone and penalties that are a result. 

I’ll have to share with you what is difficult for us right now is 

getting a clear direction. As an executive branch, we are being 

pulled in different directions, demands by Federal U.S. EPA to 

shut down and establish a landfill and then of course position of 

several senators that it shall not be downed at the location that we 

sited down in Dandan, because they don’t want that to be impacting the community, and concerns about some ground water and 

possible pollution in that area. An existing law that requires and 

demands that we have an incinerator in another area of the south 

toward Agat/Santa Rita called Guatali, with terms and conditions 

that are not acceptable to the government. 

And so, we are really caught in the middle, as there is no real 

clear policy decision. On the one hand, we must proceed as U.S. 

EPA demands and continue with the studies; the same time there 

are lawsuits that have been appealed and have been overturned in 

our local courts and our Guam Supreme Court on that very incinerator. So, where we end up and how this puzzle will be solved that 

certainly one that must be addressed. 

The other requirement of course I think is public safety. Right 

now our police officers are, I believe, 300 men short of what would 

be required of a community of this size. And when you factor in the 

growth of perhaps 17 to 20,000 additional military personnel in a 

few short years, the requirement for public safety, just in police 

alone, is tremendous. 

And I think third, although we are addressing schools, and 

DODEA has their schools, that is a sub-requirement. 

The third one I think that we must be concerned about would be 

healthcare. We have a community of course that is close to 170,000 

people now. You throw an additional 10 to 15,000 workers with no 

clear terms and conditions on the care for them. If someone gets 

sick and ill and injured, who takes care of them? Is there an insurance policy that would be provided by the employers, or do they 

simply come into our public health or hospital and have an impact 

upon our ability to pay for them? 

We currently spend between, although it is appropriate at 

$17 million, we are spending close to $28 million on healthcare for 

our poor and indigent who have no insurance whatsoever. So, there 

will be a further burden on our healthcare system. 

Those are the three other areas other than infrastructure that I 

think we must be concerned about. 

Mrs. CHRISTENSEN. OK, and thank you, Governor. 

And Mr. Sanchez, on May 17th, the Department of Homeland Security released its sector specific plan for critical infrastructure, 

which includes the industries represented by CCU. Were you given 

an opportunity to participate in the consultation process of the secVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00067 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
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tors specific plans? Have you had any assessment of critical infrastructure that you had an ability to input? 

Mr. SANCHEZ. To be honest with you Congresswoman, I wasn’t 

involved. That doesn’t mean my management team wasn’t. It is the 

first I’ve heard of——

Mrs. CHRISTENSEN. You don’t know that an assessment team 

came in to——

Mr. SANCHEZ. And that we are——

Mrs. CHRISTENSEN —develop a critical——

Mr. SANCHEZ —specifically engaged with the power, the water 

authority. 

So, I’d love to see it, and again this is——

Mrs. CHRISTENSEN. So, you haven’t seen it either? 

Mr. SANCHEZ —another example of—we can play a role and we 

have to play a role——

Mrs. CHRISTENSEN. Sure. 

Mr. SANCHEZ —and engage in here. 

I just want to add to what Congressman, I mean, Governor 

Camacho had mentioned. You know, you asked about our critical 

priorities. We’ve mentioned transmission and distribution. If we 

could get some money invested into that, it would allow us to grow 

the system for—(pauses; phone rings)—that’s telephones. 

I don’t do that. 

It would allow us to grow the system, not just for the current 

growth, but for the expected Marine growth. 

We see the construction phase of the Marine base, there’s 16 

wells we will need to drill in Dededo, next to Mayor Savares’ village, because that’s where the bulk of the construction workers are 

probably going to live; either there or down in Agat and Santa 

Rita. Again, an opportunity. 

If we then get some of the $700 million or some Congressional 

money, or some of the money supposedly floating around to build 

the wells for the construction phase, when those 15,000 construction workers leave and 20,000 citizens move in to staff and work 

on base, those wells remain, and there’s another good win-win example of investing money now for the construction phase and taking advantage of these wells that are going to remain existing and 

let that use to future growth. 

So, from the water side, there’s that, and you need to be aware, 

U.S. EPA has already sent some testimony in, there’s a growing—

there’s a problem—there’s a potential problem with the Guam aquifer. Right now, it provides 70 percent of the water on Guam. It 

has the ability to generate 80 million gallons a day, and we are 

only using 30 million gallons a day. So, there’s room for growth. 

But U.S. EPA is studying whether the U.S.—whether the aquifer 

needs to be treated like surface water. And when you treat it like 

surface water, you have to have a Surface Water Treatment plan. 

GWA has one in Yona and Talofofo called the Ugam Treatment 

Plant, and the Navy uses one at Fena. Well, the Air Force drills 

its own wells and gets its own water out of that aquifer. Of course, 

we don’t want the Marines to drill their own wells, we want then 

to get it from us. But at the end of the day, we are all drawing 

from that same big source of water, you know, different straws in 

the water, and the private sector also has some private wells. 

65

We are concerned from a security standpoint, that if we don’t 

think about that aquifer as a single resource that has to be protected from terrorism, from adverse impacts, depending on how 

this expected EPA decision is going to come down, and we expect 

within the next 18 months, we are not going to be able to put—

we have a hundred wells, we are not going to be able to put a hundred treatment plants up. 

They’re going to have 4, 6, 10 to 12 wells. In fact, the Navy already has 16 wells now. They can’t put a treatment plant in all of 

those. 

So, we are looking at the concept of single wells supporting, 

drawing from the aquifer, supporting all the costumer needs and 

secure it and protect it in a way that they can never be at—we can 

never put that aquifer at risk. That aquifer has to get protected 

and conversations with DOD and our community, we need to get 

engaged on that right away. 

Governor CAMACHO. And, Madam Chair, may I just interrupt for 

a second? 

I also wanted to add, as you asked, what were the priorities. I 

failed to mention——

Mrs. CHRISTENSEN. It is hard to——

Governor CAMACHO. Yeah. 

Mrs. CHRISTENSEN —to end the list. 

Governor CAMACHO. But the one key, I think, is the Port Authority of Guam, our seaport, which I believe is one of the single most 

important facilities right now that must be upgraded. That’s the 

choke point. That is a single entry point for roughly 90 percent of 

all goods coming into Guam. Its capacity right now to handle the 

goods flowing is already strained because of a lack of cranes that 

are old and decrepit and need to be replaced, and they’ve been boggle down with a very cumbersome procurement system in protest 

that have occurred. 

But beyond that, our capacity to handle the additional goods 

coming in for the buildup in ships is the single most important 

issue, I think, because if that is not functioning, and not capable 

of handling the flow of goods coming in, it will certainly slow down 

the buildup here. 

In addition to that——

Mrs. CHRISTENSEN. So, that’s critical——

Governor CAMACHO. I’m sorry? 

Mrs. CHRISTENSEN —critical infrastructure for you and for the 

Department of Defense, and therefore should be a shared——

Governor CAMACHO. Absolutely. 

Mrs. CHRISTENSEN —responsibility. 

Governor CAMACHO. Very, very critical. 

Thank you. 

Mrs. CHRISTENSEN. Thank you. 

For the last set of questions for this panel, Ms. Bordallo. 

Ms. BORDALLO. Thank you. Thank you, Madam Chair. 

Mr. Sanchez, I have a couple of questions for you. 

Mr. SANCHEZ. Are these the easy ones I gave you before the 

weekend? 

Ms. BORDALLO. They’re easy. They’re easy. 

Mr. SANCHEZ. OK. 

66

Ms. BORDALLO. In your testimony, you remind us the Navy and 

the Guam Waterworks water systems crisscross at certain points 

on the island and the sharing agreements may be possible. Could 

you elaborate on how the sharing agreements could be structured 

and whether there is a precedent for such agreements, and has this 

issue and proposal been raised directly with the Navy and the joint 

Guam Program Office? And if so, what has the general reaction 

been? 

Mr. SANCHEZ. OK. You know, right now, the Navy pumps water 

from Fena down south all the way up north to NCTAMS, and we 

pump water from the north down to the south to make sure——

Ms. BORDALLO. I know. Yes. 

Mr. SANCHEZ —Agat, Santa Rita, and the south have water. 

There’s a perfect example of—you have two separate systems, engineered differently. 

We used to connect at about 35 places; the Navy is cutting it 

back to about 20, because they’re trying to get their act together. 

They have major water and wastewater challenges just like GWA. 

As you know, the MILCON budgets are appropriating over a 

$150 million for them to fix Fena and their wastewater. So, here 

we have two systems trying to recover within feet and miles of 

each other, and we are not spending the money together. 

We think that, if we can move to integration, and you ask for an 

example. Before, the Guam Airport and the Guam Power Authority 

were jointly operated between the military and the civilian community and now, the airport is run by the people of Guam, the Guam 

Power Authority runs the entire system. So if you’re looking for 

models that would work for water, it is indeed to move the Navy 

into a costumer position with the Guam Waterworks Authority, 

allow the Guam Waterworks Authority to run the entire system, 

just the way the airport is run by the civilian community, just the 

way the power company is run by the civilian community, and then 

it will be incumbent upon us to meet the standards, meet the performance standards. We’ve done it at GPA; we’ve done it at the airport. 

So, there’s existing Federal models. It is Public Law 100-202, 

that was passed by the Congress and basically giving back the 

property, the power assets of the Navy and transferring them to 

Guam Power Authority. So, there already exist scenarios in Federal law in which essentially the military, as General Bice—and I 

believe he’s sincere, they don’t really want to be in the power, 

water, port business. They want to be a customer. But they’re concerned about our ability to deliver high quality service. And yet, we 

believe and we are confident that we can achieve that level, if we 

get a single integrated system. 

We are about to be informed of 100 percent rate increase by the 

Navy for the water we buy from Fena, and it is going to put it up 

to $4.00 per thousand gallons. I politely asked our Navy colleagues 

and said, if you guys, you know—we produce water for $2.80 per 

thousand gallons, and we pay debt service. They don’t pay debt 

service on their capital investments. If it costs them $4.00 per 

thousand gallons to run their system and we can run it for $2.50, 

we can save money, then give it to us, we will run it for less, we 

67

will save them money, and we will reintegrate the entire water system. 

When I asked the Navy, ‘‘Why does it cost so much at $4.00 per 

thousand gallons,’’ they said, Economies of scale. And immediately 

my light went on, I said, Well, you suffer from economies of scale, 

because you’re so small and you’re running this little system. We 

benefit from economies of scale, that’s why we are cheaper because 

we run a much bigger system. 

Isn’t it time to begin to marry these infrastructure systems? In 

fact, it is the perfect time to marry these infrastructure systems, 

and return and make the Navy and the military a customer of 

Guam Waterworks Authority. We will take over the system. If we 

have to use public-private partnerships or SBEs to do that, we already used that tool as a management tool for financing and management. We are not afraid to do the right thing to provide service 

to our people. 

Ms. BORDALLO. And I’m——

Mr. SANCHEZ. But this is the perfect time to merge them. 

Ms. BORDALLO. I’m sure you’ve made the proposal of this joint 

sharing system——

Mr. SANCHEZ. Well, no—no, not yet. 

Ms. BORDALLO —but how are they reacting? 

Mr. SANCHEZ. Well, I think that’s part of the problem. 

I mean, General Bice, we’ve had some informal conversations. 

There’s lots of meetings. We have technicians coming in. I think 

there’s an effort and a desire to engage. But at the end of the day, 

we really haven’t had formal meetings. 

I mean, one thing I’d love the committee to look at is, if there is $720 million that may be available from Japan’s $6 billion, can 

we start having those conversations? The Port—you know, I told General Bice, you take $700 million 

and you divide it by power, water, port, and landfill, and you will 

go a long way toward solving all of those problems for everybody. 

OK? 

And so, we’d love to start having engaged conversations, specific 

ones. Because, the Japanese have visited us and one of things they 

point out is—you know, and take it with a grain of salt, I don’t 

want to say they’re all representing. But they’re saying they’re 

being told by the DOD some of the parameters. And my concern 

is, are there alternative parameters that are not being presented 

to Japan that they might say, You know, that’s a better way to do 

it and it is more cost-effective. 

We need a place at the table. I think that’s what the Governor 

is calling for. We need a place at the table with these monies now 

if they want us to be ready. 

Ms. BORDALLO. Thank you. 

Governor? 

Governor CAMACHO. Yeah, Congresswoman Bordallo, that’s what 

I spoke to as I mentioned that we as a government ought to be—

we are relevant and credible stakeholders in this entire process. 

And although it is a bilateral agreement on the specific discussions, such as infrastructure, that’s where it has got to be a 

triparty-type of discussion, where input can be taken from our 

Commission on Utilities. 

68

And I think it only lends to a better understanding of the overall 

possibilities, as they form their business models on how they would 

fund this out of the $720 million. Input from the CCU on specific 

utility upgrades and options would be very beneficial to the final 

decision on what business model they will adopt. 

Thank you. 

Ms. BORDALLO. So, in general then just quickly, what I’m getting, 

the reaction I’m getting here is that, they are not really that acceptable to this idea or they’re what? 

Mr. SANCHEZ. No, I won’t say that. 

Ms. BORDALLO. No? 

Mr. SANCHEZ. I mean, they say they want to collaborate. 

Last week in Washington, D.C., General Bice said, Simon, don’t 

worry you will be involved with this business plan. And I’m taking 

that at face value. 

Ms. BORDALLO. Good. 

Mr. SANCHEZ. But every day that goes by, I worry about the port 

and the landfill almost more than I worry about power and water 

at this point. We have a little time, not much. But let’s—but 

we——

Ms. BORDALLO. Well, if something else, we will monitor. 

Mr. SANCHEZ —we can play a role. You can’t build the business 

plan for Guam when Guam is not at the table. 

Ms. BORDALLO. Very good. 

Thank you very much. Thank you, Madam Chair. 

Mrs. CHRISTENSEN. Thank you, Governor. Thank you, Senator, 

Mayor, Mr. Sanchez. Thank you for your testimony and for your responses to the questions that we asked. 

And, this panel is now dismissed with our gratitude. 

Mrs. CHRISTENSEN. We’d like to call up our third and last panel 

of witnesses, The Honorable Hope Cristobal, former Senator of the 

Legislature of Guam; Mr. Benny P. San Nicolas, Chairman of the 

Southern District of the Guam Soil and Water Conservation; Mr. 

Stephen Ruder, Chairman of the Guam Chamber of Commerce; Ms. 

Trina Leberer, Marine Conservation Coordinator of the Nature 

Conservancy, Micronesia Program; and Mr. John Robertson, Chairman of the Government Military and Labor Affairs Committee of 

the Guam Contractors Association. 

The Chair now recognizes Senator Cristobal to testify for five 

minutes. 

STATEMENT OF THE HONORABLE HOPE CRISTOBAL,

FORMER SENATOR, GUAM LEGISLATURE 

Ms. CRISTOBAL. Hafa Adai, Chairwoman Donna Christensen and 

members of the Subcommittee on Insular Affairs, Si Yu’us Ma’ase 

for this opportunity to be heard. 

I am Hope A. Cristobal, an indigenous Chamorro, former senator, 

retired school administrator, and probably the token general on 

public today, totally unbudgeted. I appear before you on behalf of 

the Guahan Coalition for Peace and Justice as a member representative of Fuetsan Famalaoan. 

The Coalition for the Protection of Ancient Cemeteries, OPR, and 

the Chamorro Studies Association—it has been some 30 years since 

a Congressional hearing was held on Guam. As a witness, I feel 

69

that the limitations and restrictive list of today’s hearing are examples of what Congress thinks of its subject people. 

You owe us no allegiance nor time, and our people’s voice really 

do not count, although I would remind you that unilateral decisions 

about our lives and our homeland perpetuate the historical denial 

of our human rights. This hearing is a reminder of the inconsistencies between the principles and the practices of democracy in a 

U.S. 21st Century colony. 

Madam Chairwoman, Guam remains a colony of the United 

States today. It is a non-self-governing territory under international standards and an unincorporated territory within the 

framework of the U.S. Constitution. 

While suffering the indignities of labels, such as possession, property and colony, we bear the brunt of restrictive interpretations in 

the application of Federal statutes, rules and regulation, by U.S. 

representatives with an eye toward maintaining the status quo, in 

the process diminishing Congress’ authority and responsibility to 

provide for the civil rights and political status of the native inhabitants of Guam under the guidance of the U.S. Constitution, the 

Treaty of Peace and the U.N. Charter. 

Just three days ago, a Pentagon spokesman referenced Guam as 

a U.S. asset in the Valiant Shield war games. And yes, Madam 

Chair, just to digress quickly, our community was affected, windows were shaking, planes flying low over our homes. I live near 

Tumon, residents there were scared, the tourists were scared, local 

residents of the elderly Guma Tranquilidad, who had survived 

World War II, were scared. 

A 1945 secret memo as well revealed the U.S.’s real intention for 

Guam of military control for its military value. There is no question that U.S. Military interests take precedence over our people’s 

interest, and that the status quo, the status of dispossession, is directly related to the issue of the Pentagons planned militarization 

of our homelands. 

First, Guam is taken as a colony during the Spanish-American 

war for its U.S. Military and strategic value. 

Second, Guam’s resultant status is that of a colony or as determined in the insular cases of 1901 to 1922, a possession of, but not 

a part of, the United States. 

Third, Guam’s value was again misunderstood during and after 

World War II, when vast amounts of land were taken and decisions 

about disposition were made unilaterally in the Organic Act of 

1950. 

Fourth, Guam status under the U.N. Charter is that of non-selfgoverning territory or colony. 

Fifth, nothing has been done by Congress or otherwise to change 

Guam’s fundamental colonial status. 

The Organic Act of 1950 reaffirms Guam’s status as a possession, 

and Guam remains a non-self-governing territory under the U.N. 

Sixth, current discussions about how Guam would be used by the 

U.S. Military are discussions within a decision. The decision to use 

Guam is not one made in Guam or by Guam, but by those who possess Guam and its people. Neocolonialist policies and the deliberate 

and careful undermining of an unincorporated Guam have allowed 

the use of our lands for military delivery systems, storage for nuVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00073 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
70

clear weapons, home porting of nuclear warships and space warfare 

technologies. 

The militarization of the Pacific and our homeland has had devastating, often unmitigable, effects on the health and welfare of our 

people. We have high rates of cancer, Madam Chair, just as a point 

of information on cancers alone. On nasopharyngeal alone, Guam 

has a rate of 1,995 times more cancer than the standard population 

of the United States. In a study by Hadac and Navao (phonetic) on 

incidences of cancer, the two villages with the highest cancer 

deaths are Santa Rita and Yigo; the two closest to military bases. 

With all due respect, Madam Chair, the people of Guam also 

need to be heard by actual voting representatives who sit on the 

Armed Forces Committee. An investigation of the Pentagon’s buildup plan having two EISs—one for Andersen for the ISR/Strike capability, and another for the Navy—is in order. 

Further, we reiterate the need for a holistic EIS with the requisite Socio-cultural Impact Assessment, subsequent and cumulative impacts, impacts from connected actions, timely public disclosure and public alerts about depleted uranium and nuclear weapons in the EEZ and coastal waters, and one that ensures objective 

environmental information with a genuine no action alternative. 

Unless, of course, the military buildup is a foregone conclusion. We 

are very, very worried about the depleted uranium and live fire 

training on Guam. 

The impact of thousands of new residents and military assets 

within the context of a colonial relationship is self-evident in a 

small island community. The dilutive effects on our right to selfdetermination is a very deep concern. Furthermore, the influx of 

new residents is in contravention to relevant U.N. resolutions on 

decolonization and the U.S.’s obligations as Guam’s administering 

power. 

In the UN’s plan of action of January 2006 for the second decade, 

for the eradication of colonialism, it is stated that administering 

powers should refrain from using non-self-governing territories for 

military bases and installations. We, unequivocally, object to our 

people being excluded in the Federal Government’s deliberations 

relating to this buildup, and we ask that a separate process be engaged for the colonized people of Guam to make an informed and 

an explicit decision about whether or not we want this military 

buildup. 

It is vital that decisions related to the U.S. Military’s plan be 

framed within the context of a dependent people living within a 

non-self-governing territory that is struggling to protect our inalienable right of self-determination, and to preserve our national 

identity. This must be the guiding principle of decisions by the U.S. 

Congress relative to Guam; my people deserve nothing less. 

In closing, I leave you with an old Chamorro Proverb [Chamorro 

language]. ‘‘Greater is the fault of he who allows the injustice upon 

himself.’’

Thank you, Madam Chair. 

Mrs. CHRISTENSEN. Thank you, Senator. 

[The prepared statement of Ms. Cristobal follows:]

71

Statement of The Honorable Hope A. Cristobal,

Former Senator, Guam Legislature 

Buenas dias Chairwoman Donna Christensen and Members of the Subcommittee 

on Insular Affairs: 

Si Yu’us ma’ase for this opportunity to be heard. I am Hope A. Cristobal former 

Senator, retired school administrator and community activist on issues related to 

the Chamorro people. I have been an adjunct professor at UOG teaching History of 

Guam. I appear before you today on behalf of the Guahan Coalition for Peace and 

Justice as a member representative of Fuetsan Famalao’an (2006), the Coalition for 

the Protection of Ancient Cemeteries (2007), OPI-R (the Organization of People for 

Indigenous Rights) (1981), and The Chamorro Studies Association (1987). I am a 

Chamorro wife, mother, and grandmother; I have lived most all my life on Guam. 

As of late, I have been working to save pre-colonial and colonial Chamorro burials, 

cemeteries and sacred grounds. 

It has been over 30 years since a congressional hearing has been held on Guam. 

As a witness, I feel that the limitations and restrictive list of today’s hearing is another example of what Congress thinks of its subject people; you owe us no allegiance nor time and our people’s voice really do not count. Although I would remind 

you, that unilateral decisions about our lives and our homeland perpetuate the historical denial of our human rights. This hearing is a reminder of the inconsistencies 

between the principles and the practices of democracy in a U.S. 21st Century colony. 

Madam Chairwoman, Guam remains a colony of the United States today. It is a 

non self-governing territory by international standards and an unincorporated territory within the framework of the U.S. Constitution. 

While suffering the indignities of labels such as: a ‘‘possession’’, ‘‘property’’ or 

‘‘colony’’, we bear the brunt of restrictive interpretations in the application of federal 

statutes, rules and regulations by U.S. representatives with an eye towards maintaining the status quo; in the process, diminishing Congress’ authority and responsibility to provide for the ‘‘civil rights and political status of the native inhabitants’’ 

of Guam under the guidance of the U.S. Constitution, the Treaty of Peace (1899) 

and the UN Charter. 

Just three days ago, a Pentagon spokesman referenced Guam as ‘‘U.S. asset’’ with 

respect to an encounter with Russian bombers in the Valiant Shield war games. Recently, Vice President Cheney openly commented on the fact of the troops being here 

in Guam so that they won’t have to fight a war in the streets of America. 

A 1945 secret memo (dtd 11/21/45 by Vice Adm. G.D. Murray Commander of the 

Marianas Navy Force) reveals the US’s real intention for Guam which is military 

control for its military value. The 3-page memo recommended the Navy’s control of 

Guam and other western Pacific islands. 

There is no question that U.S. military interests take precedence over our people’s 

interests and that the status quo, better described as a status of dispossession, is 

directly related to the issue of the Pentagon’s planned militarization of our homelands. 

1st: Guam is taken as a colony during the Spanish-American War for its U.S. 

military and strategic value. 

2nd: Guam’s resultant status is that of a colony, or as determined in the Insular 

Cases (1901-22), ‘‘a possession of but not a part of the U.S.’’

3rd: Guam’s value is again misunderstood during/after WWII when vast amounts 

of land were taken and decisions about disposition were made unilaterally (Organic 

Act of 1950.) 

4th: Guam’s status under the U.N. Charter is that of Non Self-Governing Territory or colony. 

5th: Nothing has been done by Congress or otherwise, to change Guam’s fundamental colonial status. The Organic Act of 1950 reaffirmed Guam’s status as a possession and Guam remains a Non Self-Governing Territory under the U.N. 

6th: Current discussions about how Guam would be used by the U.S. military are 

discussions within a decision; the decision to use Guam is not one made in Guam 

or by Guam but by those who possess Guam and its people. 

Neocolonialist policies and the deliberate and careful undermining of an unincorporated Guam has allowed the use of our lands for military delivery systems, storage for nuclear weapons, home porting of nuclear war ships and space warfare technologies. The militarization of our homeland has had devastating effects on the 

health and welfare of our people. 

With all due respect to you as a Member of Congress, Madam Chair, the people 

of Guam also need to be heard by actual voting representatives who sit on the 

Armed Forces Committee. An investigation of the Pentagon’s build-up plan having 

an EIS for the ISR/Strike capability at Andersen AFB and another EIS by the Navy 

72

is in order. Further, we reiterate the need for a holistic EIS with requisite socialcultural impact assessment, subsequent and cumulative impacts, impacts from connected actions, timely public disclosure/public alerts about depleted uranium and 

nuclear weapons in the EEZ and coastal waters and one that ensures objective environmental information with a genuine ‘‘No Action Alternative’’. 

The impact of thousands of new residents and military assets within the context 

of a colonial relationship is self evident in a small island society. Furthermore, this 

influx is in contravention to relevant UN resolutions on decolonization and the US’s 

obligations as Guam’s administering Power. UN Plan of Action A/RES/60/120 (1/18/

2006 Sec V.18) states that ‘‘administering Powers should refrain from using NSGTs 

for military bases and installations.’’

We unequivocally object to our people being excluded in the federal government’s 

deliberations relating to this build-up and we ask that a separate process be engaged for the colonized people of Guam to make an informed and explicit decision 

about whether or not they want this military build-up. 

It is vital that decisions related to the U.S. military’s plan be framed from the 

point of view of a dependent people living within a non-self-governing territory that 

is struggling to protect our inalienable right of self-determination and preserve our 

national identity. This must be the guiding principle of major decisions by the U.S. 

Congress relative to Guam. My people deserve nothing less. 

In closing, I leave you with an old Chamorro proverb: Isaona i tumungo’ ya ha 

sedi, ki ayo i mismo umisagui hao. Greater is the fault of he who allows the injustice upon himself. 

Mrs. CHRISTENSEN. The Chair now recognizes Mr. San Nicolas 

for five minutes. 

STATEMENT OF BENNY P. SAN NICOLAS, CHAIRMAN,

GUAM SOIL & WATER CONSERVATION DISTRICTS 

Mr. SAN NICOLAS. Thank you. 

Good morning, Honorable Congresswoman Madeleine Bordallo 

and Honorable Congresswoman Donna Christensen. I, too, similar 

to Senator Judi Won Pat, had to revise my written testimony several times, so please bear with me. 

On behalf of the Guam Soil and Water Conservation District, 

thank you for the opportunity to provide testimony on the significant issue of the U.S. Military buildup on Guam. 

As members of the Guam Soil and Water Conservation Districts, 

our main role is to protect and conserve the natural resources of 

our island. We deal primarily with farming-related issues and partner with such agencies as the U.S. Department of Agriculture, Natural Resources Conservation Service, Farm Service Agency, the 

University of Guam, and the Guam Environmental Protection 

Agency. 

There are several issues that are of primary concern to the districts with regards to the proposed military buildup here on Guam. 

Currently, they are infrastructure-related issues that must be addressed in order to provide a consistent and assessable supply of 

water to the island’s farming community. 

Preliminary information that has been provided to the community indicates that the proposed buildup will be focused on northern Guam, which has the largest population of island residents. An 

assessment of the volume of water that is available, the proper 

management of the northern aquifer, and the distribution of our 

precious water resources for farmers and residents, is very crucial. 

The current water infrastructure limitations in northern Guam 

have limited the ability of the farmers to expand and consistently 

maintain crop operation. The Districts are recommending that the 

73

military and the local community prioritize the distribution infrastructure, water resource management and the accessibility to 

water. 

In Southern Guam, the issue is similar. The Districts are concerned about the military’s increased demand for water use and its 

impact in southern residents and farmers. During dry seasons, we 

have experienced a decrease in the amount of water that is provided by the Navy to the local community. 

We are aware that the military prioritizes water use for its operations before water is distributed to island residents. However, this 

issue needs to be further examined and addressed to minimize adverse impacts on our local people, who are dependent on these 

essential water resources. 

To help alleviate this situation, we are recommending that the 

military partner with the Guam Soil and Water Conservation Districts to build more reservoirs in the southern villages. In the village of Inarajan, in the village of Merizo, and in the village of 

Umatac. The Districts are also recommending that the military 

consider the recycling of wastewater which can be converted as a 

source for irrigation for farmers. 

Another key issue that is of primary interest to the Districts is 

the access of locally grown farm products to the military community. The Districts want to be included in direct dialogue with the 

military community regarding our interest in providing fresh local 

produce for military consumption. There are mutual benefits that 

can be gained by both the military and the farming community 

through a cooperative partnership. 

The Districts are also recommending that the military buildup 

address the issue of alternative types or renewable energy generations, such as bioenergy, ocean wave energy, wind power, and other 

sources of renewable energy. As new infrastructure developments 

are put in place, the Districts would also like to see greater consideration placed on environmentally compatible development. 

The Guam Soil and Water Conservation Districts are interested 

in partnering with the military to address their conservation plan. 

This major military buildup that is proposed to occur in Guam in 

such a short time span will have a significant impact on the lives 

of our people. As members of the Guam Soil and Water Conservation Districts, we want to ensure that the critical concerns of our 

people are addressed and prioritized in the planning and implementation of the U.S. Military buildup in Guam. 

Thank you once again for providing the Guam Soil and Water 

Conservation Districts an opportunity to provide testimony on this 

very important issue. 

Thank you. 

Mrs. CHRISTENSEN. OK. Thank you, Mr. San Nicolas. 

[The prepared statement of Mr. San Nicolas follows:]

Statement of Benny San Nicolas, Chairman—Southern District,

Guam Soil & Water Conservation Districts 

Dear Chairwoman Christensen: 

On behalf of the Guam Soil & Water Conservation Districts, thank you for the 

opportunity to provide testimony on the significant issue of the, ‘‘U.S. Military buildup on Guam and Challenges Facing the Community.’’ We are very appreciate of the 

time that you and the members of your Subcommittee on Insular Affairs have taken 

74

to travel to Guam and hear first hand the issues and concerns of our people with 

regard to the proposed military buildup on our island. 

As members of the Guam Soil and Water Conservation Districts we are identified 

as an organization that primarily deals with farming related issues. However, a significant part of our mandate is focused on conservation and resource management 

related issues. The Northern & Southern Soil & Water Conservation Districts on 

Guam partner with Government of Guam Departments such as the Department of 

Agriculture, Guam Environmental Protection Agency, Bureau of Statistics and 

Plans, Department of Land Management, Department of Public Works and the University of Guam. As Districts, we also maintain partnerships with the U.S. Department of Agriculture, the Natural Resource and Conservation Service and the Farm 

Service Agency. 

There are a number of issues that are of primary concern to the Districts with 

regard to the proposed military buildup here on Guam. The most critical issue is 

directly related to our island’s water resources. The Districts are well aware that 

the proposed military buildup will significantly increase the islands population and 

have an impact on the water resources that are available on island. Currently there 

are a number of infrastructure related issues that must be addressed in order to 

provide a consistent and accessible supply of water to the island’s farming community. Of particular concern is the accessibility and supply of water that is currently 

available to farmers for irrigation and livestock in northern Guam. The preliminary 

information that has been provided to the community indicates that the proposed 

buildup will be focused in northern Guam. This is the very area that has the largest 

population of island residents and has the greatest impact on the use of the northern aquifer. The issue of accessibility to water resources must be taken into primary 

consideration as one of the most critical issues to be address. An assessment of the 

volume of water that is available, the proper management of the northern aquifer 

and the distribution of our precious water resources is a critical concern to the local 

farming community and island residents. The current water infrastructure limitations in the northern part of the island have limited the ability of farmers to expand 

and consistently maintain crop operations. The Districts are recommending that in 

order to insure compatible development between the military and the local community, the distribution infrastructure, water resource management and the accessibility to water must be a top priority. 

This same concern also applies to southern Guam. The Navy provides water to 

a number of residential households and farms in the southern part of the island. 

The Districts are concerned about the impacts increased demand for water use for 

the military will have on the availability of water for southern residents and farmers. The Navy currently provides water from the Fena Reservoir that is located on 

military property. We have experienced in the past, especially during the dry season 

of the year, a decrease in the amount of water that is provided by the Navy to the 

local community. We are aware that the military prioritizes water use for its operations before water is distributed to island residents. However, this issue needs to 

be further examined and addressed to minimize adverse impacts to our local people 

who are dependent on this essential water source. 

The Districts are also recommending that the military consider in its buildup 

plans the recycling of wastewater that can be converted as a source for irrigation. 

If new wastewater plants are to be constructed to handle the increased military population, the current practice of wastewater treatment and discharge into the ocean 

only further depletes reusable water resources. The Districts would like to see a 

more integrated approach for the development and management of water and wastewater resources that will take into mutual consideration the impacts and benefits 

to both the military and the local community. 

Another key issue that is of primary interest to the Districts is the access of locally grown farm products to the military community. The Districts want to be included in direct dialogue with the military community concerning our interest in 

providing fresh local produce for military consumption. The Districts are of the position that the local economy can be further stimulated and directly benefit from the 

military investment as a customer of locally grown products. There are mutual benefits that can be gained by both the military and the farming community through 

a cooperative partnership. The Districts would also like to work with the military 

to further address the issue of food security and the ability to provide food commodities that can be produced on island. With our distance from major shipping ports, 

it is in our mutual interest to increase local food production to provide for both the 

civilian and military population. 

The Districts are also recommending that the military buildup address the issue 

of alternative types of renewable energy generation such as bio energy, ocean wave 

energy, wind power and other sources of renewable energy as part of its buildup 

75

operations. We are aware that the military is already pursuing alternative energy 

infrastructure at other base operations in the mainland. We would like to see the 

military integrate alternative energy models into their buildup operations in Guam. 

As new infrastructure developments are put in place the Districts would like to 

see greater consideration being placed on environmentally compatible development. 

The Guam Soil & Water Conservation Districts are interested in partnering with 

the military to address the development of their conservation plan to address the 

military expansion plans for Guam. During the National Association of Conservation 

Districts Meeting just recently held in Washington D.C. in July, we shared our concerns with our fellow District members across the nation of the potential impacts 

such a significant military buildup will have on our small island. Our National 

President, Olin Sims further shared our concerns on July 24, 2007 in a meeting 

with representatives at the Pentagon to encourage a greater partnership between 

the military and the Conservation Districts. In the area of conservation, we would 

like to move forward with a progressive partnership with the military. 

It is very important to remember that the impact of the proposed military buildup 

is not limited to behind the fence base operations. This major military buildup that 

is proposed to occur on Guam in such a short time span will have significant impact 

on the lives of our people. As members of the Guam Soil & Water Conservation Districts we want to insure that the critical concerns of our people, particularly with 

regards to conservation issues, are addressed and prioritized in the planning and 

implementation of the U.S. military buildup on Guam. 

Thank you again for providing the Guam Soil & Water Conservation Districts the 

opportunity to provide testimony on this very important issue. 

Mrs. CHRISTENSEN. The Chair now recognizes Mr. Ruder to 

testify. 

STATEMENT OF STEPHEN RUDER, CHAIRMAN,

GUAM CHAMBER OF COMMERCE 

Mr. RUDER. Thank you. 

Honorable Chairwoman Christensen, Congresswoman Bordallo, 

my name is Stephen Ruder, and I’m honored to have been invited 

to address this hearing. I’m a small businessperson and have lived 

and worked on Guam for 20 years. I’m proud to call Guam home. 

I’m also privileged to be delivering testimony today on behalf of 

the Guam Chamber of Commerce in the capacity as Chairman of 

the Board of Directors. The Guam Chamber of Commerce is comprised of over 325 individual businesses representing all sectors of 

the business community. Our members collectively employ roughly 

40,000 island residents. Over half of our members come from small 

businesses with annual gross revenues less then $1 million. Our 

combined membership generates $2 billion annually in economic 

activity, or approximately 70 percent of Guam’s gross island product. We also engage the community in worthwhile civic endeavors. 

For the past 83 years, the Guam Chamber of Commerce has believed that what’s good for the community is good for business. The 

Guam Chamber of Commerce recently commissioned a professional 

research company in late March of this year to conduct a statistically valid quantitative survey among island residents to ascertain community support for and attitudes about the planned military buildup. Survey methodology produced statistically accurate 

results within a plus or minus 4 percent margin of error. 

The purpose of the study was to gauge community temperament 

more objectively and accurately than what may have been or continues to be portrayed by a vocal minority and the political support 

or media attention that they attract. Results from the survey show 

that, and I’ll just summarize some of the brief results; 

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(1) A majority, or 71 percent, of Guam residents polled support 

in increased military presence, (2) Nearly 80 percent of Guam residents polled feel the increasing military presence will result in additional jobs and tax revenue, and (3) nearly two-thirds of Guam 

residents polled feel the additional Marines on island will have a 

positive effect and ultimately improve the island’s overall quality 

of life. 

Judging from the results of this survey, it is clear that a majority 

of Guam residents support a larger military presence on the island. 

And while 19 percent of those surveyed do not know whether the 

Marine relocation will improve the island’s quality of life, we believe that most in this category will react positively if they know 

that the revenue improvements associated with relocation will be 

dedicated to the funding of various public facilities and enhancing 

the quality of life for everyone. 

The Chamber believes that the U.S. Military buildup will impact 

the island’s civilian infrastructure, the magnitude of which will require significant external assistance. The nature of this outside 

help centers on institutional expertise, as well as the comprehensive funding strategy involving private sector participation to support an integrated upgrading of Guam’s infrastructure. 

As discussed earlier, the Commercial Port is often called the long 

pole in the tent because of the importance to the success of the 

buildup. That said, our port is substantially behind in its thru put 

capacity. To quickly provide facilities able to meet the demand will 

require some type of comprehensive commercial venture to develop, 

fund, construct and perhaps operate a contemporary port. 

Increasing Guam’s ability to support the planned military buildup in the next 7 years will also require a surge in construction capacity. Therefore, it will be important for the Federal Government 

to develop a comprehensive construction program to provide local 

business opportunities to facilitate the use of major off-island contractors and temporary workers, and to partner with local institutions, including the Guam Contractors Associations Trades Academy, to expand and intensify training programs that will produce 

the local skill labor required to meet the demand today and, more 

importantly, in the future. 

The socio-economic environmental impact from the buildup will 

be reduced, given that various elements of the planned buildup occupy customized land-use footprints spread throughout Guam and 

the islands of the CNMI. There are already some of these in place, 

as in the case with the FDM bombing range, and the enhanced capabilities at Andersen Air Force Base and Naval Base Guam. 

The island’s primary revenue source today is tourism, which accounts for 20,000 jobs, and we must do everything possible to protect this fragile industry. Approximately 80 percent of Guam’s 

1.2 million visitors come from Japan. Recent research commissioned by the Guam Visitors Bureau indicates that the image of 

Guam and Japan would not be harmed by the buildup; that’s the 

good news. The bad news is that Japan, our largest market, is a 

market in decline on Guam. It is essential that the expansion of 

Guam’s tourism industry remain a significant priority, even as the 

planned military buildup moves forward. 

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The Guam-Only Visa Waiver Program is a crucial tool to growing 

new markets. Your support to expanding the Guam-Only Visa 

Waiver Program is crucial. As the buildup moves forward, the business industry will also be coping with the immediate demand for 

labor, and Congress must be sensitive to wage-driven competition 

and eroding the industry’s workforce too deeply. This would be to 

the detriment of an industry already competing in a lower East 

Asian business environment. 

In summary, the same attributes that make for a healthy resort 

environment are identical to those that make Guam attractive for 

the relocation of military personnel. As we continue to work together toward expanding our economy and enhancing the quality 

of life for all of our community, there’s bound to be short-term and 

temporary inconveniences. But these disruptions, whether socioeconomic, environmental, should not be the reasons to forfeit the 

long term benefits of our national security interest and the economic well-being in Guam. To this end, the Guam Chamber of 

Commerce pledges its full support for the planned U.S. Military 

buildup. 

Thank you for the opportunity. 

Mrs. CHRISTENSEN. Thank you, Mr. Ruder. I got it right the second time. 

[The prepared statement of Mr. Ruder follows:]

Statement of Stephen C. Ruder, Chairman of the Board,

Guam Chamber of Commerce 

INTRODUCTION 

Honorable Chairwoman Christensen, Congresswoman Lee, and Congresswoman 

Bordallo, my name is Stephen C. Ruder, I am the Proprietor of Ruder Integrated 

Marketing Strategies, a local marketing and business consultancy. I have lived and 

worked on Guam for twenty years and am proud to call Guam home. 

I am here, however, in my capacity as Chairman of the Guam Chamber of Commerce Board of Directors. Our chamber membership is comprised of over 300 individual businesses representing all sectors of the business community, which collectively employ 40,000 island residents in the private sector. About 52% of our members come from small businesses, but our combined membership generates 

$2 billion annually in economic activity or approximately 70% of Guam’s Gross Island Product. 

Thank you for the invitation to participate at today’s oversight field hearing on 

the ‘‘U.S. Military Buildup on Guam and Challenges Facing the Community.’’

Public discussion regarding the U.S. military buildup in the Marianas is the most 

significant issue ever to touch our shores in recent memory. And the debate that 

will arise from these oversight meetings is sure to give pause to the notion that the 

Proposed Action can be undertaken without difficulty. Good things never come 

easily. 

The Proposed Action is multifaceted in scope, broad in expectation and intensity, 

and of obvious significant impact to the islands of Guam, the Commonwealth of the 

Northern Marianas and the island states of Micronesia. But properly aired, we 

believe that most (if not all) of the issues raised can be addressed in good faith, 

balanced within the context of national security, and sensitized to community 

sentiments. 

COMMUNITY SUPPORT 

The Guam Chamber of Commerce in late March 2007 commissioned QMark Research and Polling to conduct a statistically valid quantitative survey among island 

residents to ascertain community support for, and attitudes about, the planned military buildup. QMark’s survey methodology produced statistically accurate results 

within a 4% margin of error. This was done to gauge community temperament more 

objectively and accurately than what may have been (or continue to be) portrayed 

by a vocal minority and the political support or media they attract. Results from 

this survey show that: 

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1. A majority (71%) of Guam residents polled support an increased military presence, 14% opposed, and 15% were either neutral (9%) or don’t know (6%); 

2. Nearly 80% of Guam residents polled feel the increasing military presence will 

result in additional jobs and tax revenue (79%); and, 

3. Nearly two-thirds (60%) of Guam residents polled feel the additional Marines 

on the island will have a positive effect, and ultimately improve the island’s 

quality of life. Of the remainder, 21% feel the opposite and 19% don’t know. 

Judging from the results of this survey it is clear that a majority of Guam residents support a larger military presence on the island. And while 19% of those surveyed do not know whether the Marine relocation will improve the island’s quality 

of life, we believe that most in this category will react positively if they know that 

revenue improvements to the island will be dedicated to the funding of various public facilities and enhancing the quality of life for everyone. 

PHYSICAL INFRASTRUCTURE AND SKILLED LABOR 

The Guam Chamber of Commerce believes that the U.S. Military buildup will impact the island’s civilian infrastructure, the magnitude of which will require significant external assistance. The nature of this outside help centers on institutional expertise, in short supply locally, as well as a comprehensive funding strategy to support an integrated upgrading of Guam’s power grid, water and sewer systems, solid 

waste disposal, roadway network, and the housing and community support facilities 

that come with the anticipated population growth. By some accounts, the island’s 

population could grow potentially by 20% to about 200,000 residents by 2015. 

For various reasons, the local government is clearly incapable of addressing these 

needs or managing and funding their development in the compressed time required. 

Given this situation, it would be prudent to ‘‘turn key’’ or otherwise ‘‘broker’’ private 

sector participation in this islandwide infrastructure upgrade by leveraging the military’s investments, together with private capital and federal funds, to which the island is already entitled, in a manner that can either: 

a. Support the commercial viability of infrastructure upgrades, i.e. housing, commercial port, water, sewer, solid waste disposal; or 

b. Maximize federal and non-local funding sources for highways, bridges, telecommunications, and various social programs affected by the build-up in military personnel. 

The Commercial Port is often seen as the ‘‘long pole’’ in the tent because it is substantially behind in ‘‘thru put’’ capacity for the billions worth of construction supplies, materials and equipment that will be brought into the island. To quickly provide facilities which will be able to dock the ships, off-load the cargo, and expand 

storage capacity will require some type of comprehensive commercial venture to develop, fund, and construct/operate a contemporary port operation, including the expansion of the current facility. The demand for aggregate/cement alone on Guam 

will be overwhelming, such that additional production would have to be developed. 

While our neighboring Islands have plant facilities to produce cement at prices comparable to Guam, we would have to address shipping and handling charges both 

here and in the CNMI to be sure that such expenses do not become prohibitive. Indeed, it would seem that higher volume will cause these charges to drop significantly to the benefit of other users as well. 

Building up Guam’s capacity to support the planned military buildup in the next 

7 years will require a ‘‘surge’’ in construction capacity, the magnitude of which the 

islands of Guam and the CNMI do not currently possess. Therefore, it will be important for the Joint Guam Program Office (JGPO) to develop a comprehensive construction program to: 

a. Facilitate the use of major off-island contractors and temporary workers; 

b. Partner with local institutions to expand and intensify training programs that 

will produce the local skilled labor needed to maintain the facilities built and 

other invested capacity; and, 

c. Provide local business opportunities. 

SOCIO ECONOMIC AND ENVIRONMENTAL IMPACT 

The socio economic and environmental impact from the U.S. military buildup can 

be reduced, mitigated, or otherwise muted to the extent that various elements of the 

planned buildup occupy ‘‘customized’’ land use footprints spread throughout Guam 

and the islands of the CNMI. There are already some of these in place, as in the 

case of the FDM bombing range, and the enhanced capabilities at Andersen and 

Naval Base Guam. 

The buildup of training facilities in the CNMI to store equipment used for training, for instance, can complement the Chamber’s concept of ‘‘Labor Collaboration’’ 

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which envisions labor intensive work such as the prefabrication of buildings using 

pre-stressed concrete and wood work, which: 

a. Can greatly reduce the intensity of logistical and congestion issues on Guam; 

b. Employ excess barracks and housing facilities now left vacant in the CNMI 

from the departure of foreign garment factory workers; and, 

c. Reduce the social impact of thousands of foreign laborers on Guam. 

This is an example where significant labor and training impacts are mitigated 

through dispersion, while simultaneously providing economic and employment benefits to the CNMI at a time when their economy is in desperate need of alternatives 

and their tourism industry is in a decline. 

We do not view the socio economic impact of the Proposed Action to be a major 

issue, given the fact that: 

a. There were over 20,000 more military personnel on Guam, post Vietnam, when 

the island’s population was about half the current number of about 165,000; 

b. Fewer recreational facilities and family amenities existed at that time; and, 

c. Large tracts of land and underutilized facilities on U.S. Government property 

still exist today following ‘‘BRAC’’ closures many years ago. 

TOURISM IMPACT 

The island’s primary revenue source today is tourism, which accounts for 20,000 

jobs and one third of the island’s employment. In coping with the immediate demand for labor, JGPO must be cognizant of the ‘‘wage driven’’ competition and eroding the island’s tourism work force too deeply, to the detriment of an industry competing in a lower wage East Asian business environment. 

It will also be important to ensure that the buildup will not cause long-term deterioration of the island’s marine attractions such as popular dolphin watching tours, 

parasailing, banana boating, scuba diving, and cultural or historical attractions. 

Approximately 80% of Guam’s 1.2 million visitors come from Japan. Because of 

this, the Guam Visitors Bureau last year commissioned Japan Market Intelligence 

(JMI) to gauge the sentiments of the island’s Japan market. Results for this study 

showed that over 60% of respondents were aware of the movement of military troops 

from Japan to Guam and less than 10% of those viewed this negatively. With respect to Guam’s image as a leisure destination, JMI found little effect on Guam’s 

image as a vacation destination. In fact, fully 94% of those surveyed either did not 

change their image (62%) of Guam as a vacation destination or felt (32%) Guam’s 

image would be better. 

Forty years ago, with the first planeload of tourists, came a renaissance of our 

culture. The emergence of an increased presence of the military can create a new 

paradigm of self discovery. In that regard we hope that special attention can be 

given to significant historic and archeological sites, which now exist on military 

property, and should be made accessible to visitors and residents alike whenever 

possible. 

Planned exercises on the ground, air and sea can be maximized because of minimum air and ocean encumbrances, but will require close collaboration with the 

tourism industry to ensure adequate safety at minimum cost to all. 

The island is a beach resort leisure destination that thrives on a clean, pollution 

free, natural environment. While we recognize that today the military are excellent 

stewards of the environment, it will be important to ensure that: 

a. Training and other exercises keep these destination assets in mind; 

b. The construction and use of defense facilities minimize visual blight, noise and 

air or water pollution; and, 

c. Collaborative efforts are made to enhance both the attractions and the ambience for the use and enjoyment of all. 

The same attributes that make for a healthy resort environment are identical to 

those that also make Guam attractive for the relocation of military personnel and 

their accompanying families and support staff. And the island’s ability to preserve, 

showcase, and otherwise promote Guam’s unique cultural heritage is enhanced to 

the degree that the island’s improved economy will provide incremental tax revenues that can sustain such an effort profitably. 

GUAM CHAMBER OF COMMERCE SUPPORT 

As we continue to work together toward expanding our economy and enhancing 

our quality of life in the community, both local and military leaders must recognize 

the inherent changes in this growth as well as the short term and temporary inconveniences that will be produced. But these short term disruptions, whether socio 

economic or environmental, should not be the reasons to forfeit the long-term benefits of our national security interests and the economic well-being of the island. 

80

To this end, the Guam Chamber of Commerce pledges its full support for the 

planned U.S. military buildup, subject to the reasonable adjustments required to 

satisfy mutual concerns of the military and residents of Guam and the CNMI. 

As an organization of more than 300 businesses, from all sectors of the Guam 

economy employing more than 40,000 people, and generating $2.1 billion annually 

to the island economy, we stand ready to assist in facilitating the best possible decisions and choices that will affect our long term mutual interests and concerns. 

Thank you for providing us the opportunity to express our views. 

Mrs. CHRISTENSEN. The Chair now recognizes Ms. Leberer to——

Ms. LEBERER. Uh-huh, that’s right. 

Mrs. CHRISTENSEN —for five minutes. 

STATEMENT OF TRINA LEBERER, MARINE CONSERVATION 

COORDINATOR, MICRONESIA PROGRAM, THE NATURE 

CONSERVANCY OF GUAM 

Ms. LEBERER. Madam Chairwoman and Congresswoman 

Bordallo, thank you for the opportunity to testify. My name is 

Trina Leberer and I am the Marine Conservation Coordinator for 

the Micronesia Program of the Nature Conservancy. I have lived 

and worked on Guam for the past 13 years, including 7 years with 

the Government of Guam Division of Aquatic and Wildlife Resources and now nearly 3 years with TNC. 

The Nature Conservancy has been working in Micronesia for 17 

years. The way we work in Micronesia differs from our work in the 

U.S., in that we do not own or manage sites ourselves, but instead 

support and assist with the work of our local partners. 

The testimony I am providing today incorporates some of the 

needs and concerns of many of our local resource partners on 

Guam. It is critical that the community and local resource agencies 

are involved throughout this process. 

The planned U.S. Military buildup on Guam is unprecedented in 

terms of scale and timing. Our island population is estimated to increase by 40,000 people, an increase of nearly 24 percent over the 

next 8 years, as a direct result of the military expansion. This figure does not include the expected increase in the general population associated with this large-scale development. 

For an island of only 212 square miles, this would be a huge 

shock to our system. It will require innovative solutions, full participation by all stake-holders, and a commitment from the Department of Defense, other Federal agencies and the local government, 

to move beyond merely managing the impact, and strive for a clear 

net benefit to the people, culture, sustainable economy, and natural 

resources of Guam. To be successful, full transparency, active communication, and a spirit of cooperation and trust among all concerned will be required. 

In my written testimony, I provided a brief analysis of the current situation and specific recommendations on several key issues, 

which I will summarize today. First, Cumulative Impacts and Compensatory Mitigation. 

As Congresswoman Bordallo noted, Congress needs to support 

early an adequate funding to compile comprehensive baseline data 

and a fully integrated analysis by DOD and Federal and local regulatory agencies considering the direct and indirect cumulative impacts of this buildup required under NEPA. 

81

DOD, Federal Regulatory Agencies, and Congress must also be 

receptive to alternative forms of compensatory mitigation, such as 

the possibility of using some mitigation funding to build an endowment for long-term sustainable financing of Natural Resource Management on Guam. 

Information Availability in Dissemination. Local agencies and 

the community need timely information to fully assist the expansion and provide comments at a point in the process when it is still 

practical for DOD to modify and improve plans based on that 

input. 

Congress must be willing to give DOD additional flexibility in 

project funding and implementation so they can incorporate public 

input in the very short timelines they are facing. 

Support for Increased Resource Agency Capacity. Congress 

should support releasing a portion of DOD project funding to local 

and Federal resource agencies prior to EIS completion so that they 

can properly assess alternatives and plan for mitigation actions. 

Congress and Federal resource agencies must work to increase 

allocations under current Federal grants to support the increase in 

local operational capacity required to address impacts to Guam’s 

natural resources, resulting from the military buildup, and ancillary private sector development. 

Invasive Species. In response to the elevated risk due to the expansion, DOD needs to implement expanded internal programs to 

control, eradicate, and prevent to spread of both terrestrial and marine invasive species. 

The U.S. Departments of Agriculture and Homeland Security 

Customs Border Patrol need to support the Governments of Guam 

and the CNMI to achieve a higher level of prevention and quarantine capacity. 

Ancillary Impacts. In addition to direct impacts from the military 

buildup, there will be a need for an estimated 12,000 to 15,000 construction workers, and with approximately 75 percent coming in 

from off-island, they will have an impact on our utilities, government services, and coastal fishery resource as they fish to supplement their diet. 

DOD and the local agencies need to develop joint programs to 

educate all active military, their dependents, and contract workers 

on Guam’s environmental laws, and the value of Guam’s natural 

resources. 

Green Infrastructure. As Congresswoman Bordallo pointed out, 

DOD should follow guidelines in the lead Green Building Rating 

System for new construction and major innovations in the design 

of all new military construction, including the use of green belts, 

renewable construction materials, water catchments, and alternative energy sources. 

Sustainable Drinking Water. As has been brought up before as 

well, Congress should support funding for a comprehensive baseline study to determine the recharge rates and water quality for 

the Northern Guam Aquifer, our main drinking water source. 

In light of the military buildup and as a substantial land owner 

on Guam, DOD must play a critical role in protecting our aquifer 

and the other main drinking water sources in Southern Guam, 

through such actions as watershed planning and restoration. 

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Public Shoreline Access. An expansion in military installations 

and associated security measures may result in the further restriction of public access to coastal and marine resources. 

We encourage DOD to work with local agencies and the community to identify opportunities for collaboration and joint planning to 

protect and enhance public shoreline access. 

This military buildup poses some of the biggest challenges to 

Guam’s vision to achieve healthy natural resources available for 

the sustainable use of ours and future generations. Creative solutions will be required to turn this tremendous challenge into an 

equally tremendous long-term opportunity for the people, culture, 

sustainable economy and natural resources of Guam and Micronesia as a whole. 

Again, thank you for the opportunity to testify and I hope this 

testimony will be useful to assist you with addressing some of the 

very real challenges facing the community as we prepare for the 

military buildup on Guam. 

I would be pleased to answer any questions. 

Mrs. CHRISTENSEN. Thank you, Ms. Leberer. 

[The prepared statement of Ms. Leberer follows:]

Statement of Trina Leberer, Marine Conservation Coordinator,

The Nature Conservancy, Micronesia Program 

Madam Chairwoman and distinguished members of the Committee, thank you for 

the opportunity to testify on the ‘‘U.S. Military Buildup on Guam and Challenges 

Facing the Community.’’ I’d also like to take the opportunity to express our appreciation to the Congressional leadership in creating a Subcommittee on Insular Affairs and to all of the island delegates for their strong leadership. My name is Trina 

Leberer, and I am the Marine Conservation Coordinator for the Micronesia Program 

of The Nature Conservancy. I have lived and worked on Guam for the past 13 years, 

including 7 years with the Government of Guam Division of Aquatic and Wildlife 

Resources and now nearly 3 years with TNC. 

The mission of The Nature Conservancy is to preserve the plants, animals and 

natural communities that represent the diversity of life on Earth by protecting the 

lands and waters they need to survive. TNC has been working in Micronesia for 17 

years. The vision of our Micronesia Program is: The people of Micronesia conserving 

and effectively managing their natural heritage. The way we work in Micronesia differs from our work in the US, in that we do not own or manage sites ourselves, 

but instead support and assist with the work of our local partners. 

The testimony I am providing today incorporates some of the needs and concerns 

of many of our local resource partners on Guam. It is critical that the community 

is involved throughout this process, both directly and through the representation of 

the government agencies mandated to protect and sustainably manage the natural 

resources of the island on their behalf. We applaud this Committee’s willingness to 

meet with various segments of the community this past week and encourage the Department of Defense to hold additional public meetings as more detailed information 

on the expansion is available. 

The planned U.S. military build-up on Guam is historic in terms of scale and timing. According to the most recent information provided to the Government of Guam, 

our island population is estimated to increase by 40,000 people over the next eight 

years as a direct result of the military expansion. Based on our 2005 population estimate of 167,974 this is a nearly 24% increase. This figure does not include the expected increase in the general population associated with this large-scale development and the expected economic boom. For an island of only 212 square miles, this 

will be a huge shock to our system that will require innovative and creative solutions, full participation by all stakeholders, and a willingness on the part of all concerned, and especially the Department of Defense and other federal agencies, to 

move beyond ‘‘business as usual’’ and to set as the key objective not merely ‘‘managing the impact’’ or ‘‘mitigation’’, but a true commitment to ensuring that at the 

end of the day the entire project results in a clear net benefit to the people, culture, 

sustainable economy, and natural resources of Guam and indeed the entire MicroVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00086 Fmt 6633 Sfmt 6621 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
83

nesia region. There must also be full transparency and a conscious purpose of developing trust among all concerned. 

In the midst of this incredible growth, we must ensure the protection of our island’s natural resources, not only because of their intrinsic value, but because they 

form the foundation upon which we depend culturally, economically, and for our 

quality of life. This means first and foremost that we must avoid irreversible negative impacts to the environment wherever possible. When avoidance is impossible, 

then we must ensure not only adequate and appropriate compensatory mitigation, 

but also positive steps resulting in a clear net enhancement of the quality of, and 

reliable long-term protection for, our natural resources. 

Cumulative Impacts and Compensatory Mitigation 

The Department of Defense needs to strengthen their assessment of cumulative 

impacts in order to meet the requirements of the National Environmental Policy Act 

(NEPA) and make better informed decisions about project alternatives and compensatory mitigation. In previous years, there has been a tendency for the Department 

of Defense to manage projects individually or in phases, including the determination 

of appropriate compensatory mitigation for each individual project. This approach 

is simply inadequate for a project of the size and complexity of the proposed military 

build-up, especially given the highly inter-related and fragile nature of the natural 

resources on Guam and in the lands and waters of Micronesia as a whole. A fully 

integrated analysis, considering the true cumulative effects, both direct and indirect, 

of this enormous project, and with full participation by participating and supporting 

federal agencies, is precisely what NEPA requires. It is also precisely what is needed to ensure that the military build-up results in a clear net benefit to the people, 

culture, sustainable economy, and natural resources of Guam and Micronesia as a 

whole. 

There is also a challenge, frankly, for the Congress itself to be willing to create 

the political and funding environment that will allow for truly effective public participation and will allow the Department of Defense to proceed in a manner that 

meets not only the letter of, but also the spirit and intent of NEPA. Advance funding to allow comprehensive baseline data is part of that challenge. Broad oversight 

across multiple committees of jurisdiction in the Congress to ensure adequacy of 

funding not only for the Department of Defense but also for other key federal agencies will be both difficult politically and essential to a successful project. Enabling 

legislation to allow funding of endowments for long-term stewardship of natural resources will be important and politically challenging both within the Executive 

branch and in the Congress. 

Another part of the challenge facing Congress will be the need to recognize that 

the long lead times and project specificity normally associated with projects funded 

through the Military Construction (MILCON) process may require modification to 

provide the Department of Defense the kind of flexibility and agility that will be 

necessary to ensure that the project as a whole is one of true partnership between 

the Department of Defense and the government and people of Guam. The timeline 

for this project, driven in part by political commitments given to Japan with regard 

to the timing of relocation of U.S. forces now stationed on Okinawa, combined with 

the need to adjust project planning based on public input and additional data as 

the project progresses, simply may not fit within the normal procedures and long 

lead times associated with the MILCON process 

We recognize that this current build-up is comprised of a myriad of projects under 

several branches of the Department of Defense, and as such there have been or will 

be separate Environmental Impact Statements prepared for each project, or in some 

cases a related group of projects such as the proposed training activities in Guam 

and the Northern Marianas. Unfortunately, it is unclear how the overall planning 

process will ensure the adequate identification and assessment of the cumulative environmental impacts from these individual projects. To help ensure the sustainable 

management of the natural resources of Guam for future generations, the Department of Defense needs to truly identify and quantify the cumulative impacts, minimize those impacts where feasible, and, where avoidance or minimization is not feasible, address those impacts with actions that not only mitigate for those impacts 

but result in a clear net benefit. 

In addition, the Department of Defense, Regulatory Agencies, and Congress need 

to be receptive to alternative forms of compensatory mitigation in order to achieve 

meaningful results. There has been a preference for onsite mitigation or mitigation 

within the immediate vicinity of the project. For example, if a certain acreage of 

coral will be dredged, then the proposed mitigation might include coral transplantation or the placement of artificial reef-like structures in the vicinity of the dredged 

area. Unfortunately, the proposed mitigation methods often fail to compensate for 

84

the lost ecological function of the impacted reef, even under the best of circumstances. Furthermore, onsite mitigation in a place like Apra Harbor, where future proposed projects require additional dredging, is not prudent as any benefits 

from mitigation may be undone by future development. A more recent approach to 

compensatory mitigation has been to provide a set of viable options. Although this 

is a better approach, the applicant still has the ability to choose any of the viable 

alternatives, even if the selection is not the best option for achieving replacement 

value of the resources lost. Finally although past mitigation has resulted in an overall loss of terrestrial and marine natural resources, new mitigation options now 

make it possible to scale against loss and this should be required when determining 

the level of mitigation required. 

Therefore, we support the local Guam agencies plea for creative alternatives to 

onsite compensatory mitigation options and that they be allowed to select the best 

alternatives, such as off-site watershed restoration and the banking of mitigation 

funds using an appropriate mechanism, such as a Guam sub-account in the Micronesia Conservation Trust. The MCT is a regional organization committed to longterm, sustainable funding to support biodiversity conservation and related sustainable development for the people of Micronesia. 

Information Availability and Dissemination 

The public and local resource agencies often do not receive enough information 

about Defense projects to provide meaningful input during the EIS process. When 

they do receive detailed information, they either are not provided with enough time 

to review the information and adequately address the myriad impacts to the island’s 

natural resources or the opportunity occurs too late in the process to facilitate implementation of new alternatives. Although we have known that several proposed 

projects associated with the military build-up will negatively impact our natural resources such as coral reefs and native forests, the information provided was not detailed enough for assessing and adequately addressing the cumulative impacts. 

The information available in the latest series of public meetings and open houses 

for the upcoming expansion was extremely vague and thus precluded the submission 

of meaningful comments about specific sites. Any requests for more specific information about the area requirements or exact numbers were dismissed. Individuals 

were instructed to wait for the draft EIS and make comments then. Unfortunately, 

once the plans for proposed projects reach this stage, the time given for review and 

response is usually insufficient for capacity-strapped local and federal regulatory 

agencies to thoroughly review and assess all alternative actions. In addition, especially in the case of Apra Harbor, there is no comprehensive set of pre-expansion, 

baseline data for the extensive coral reef and fishery resources, the hydrodynamic 

processes, stakeholder use patterns, or current sediment and water quality. This 

makes it extremely difficult to again assess the cumulative impacts of the recent 

and proposed projects in the Harbor. Early and adequate funding from the Department of Defense and other relevant federal agencies to enable compilation of a comprehensive set of baseline data will be vital if the process is to be successful. 

The core of the NEPA process is full transparency and public participation well 

before agency plans are ‘‘finalized’’ so that the agency is in fact in a position to truly 

consider input received and adjust initial plans in light of that input. In this complex situation, the Department of Defense must work actively to achieve greater 

transparency immediately and throughout the planning process. Local agencies and 

the community need timely information to fully assess the expansion and provide 

comments regarding project-specific and cumulative impacts at a point in the process when it is still practical for the Department of Defense to modify and improve 

plans based on that input. Congressional willingness to give the Department of Defense additional flexibility in project funding and implementation so that the Department can incorporate public input on the very short timelines it is facing will 

be critically important. 

Support for Increased Resource Agency Capacity 

This expansion is unprecedented in its size and scope and the impacts to Guam’s 

natural resources will be numerous and diverse. The local and federal resource 

agencies are tasked with assessing the alternatives presented by the Department 

of Defense and providing mitigation options. However, their current lack of capacity, 

both human and monetary, will greatly hinder their ability to complete these tasks. 

This problem will be greatly exacerbated if they are forced to operate under short 

deadlines and insufficient planning information. 

Because of these limitations, it would be beneficial if the Congress could release 

a portion of the Department of Defense funding for these projects to the local and 

federal resource agencies so that they can address the need for proper assessment 

85

of alternatives and planning for mitigation actions. In addition, the federal agencies 

and the Congress should consider the necessary increase in operational capacity for 

local natural resource management agencies and organizations, associated with the 

preparation for and eventual increase in population, both in military personnel and 

in general, and the associated development that the island will experience in the 

next several years. To assist the local agencies, allocations for existing federal grant 

programs such as the NOAA coral and coastal zone grants, the Forest Service Pacific Island grants, the U.S. Fish and Wildlife Service state wildlife, coastal conservation, endangered species and invasive species grants, EPA grants, and Capital 

Improvement Grants under the Office of Insular Affairs should be increased to levels based on Government of Guam capacity needs assessments currently being developed. These additional funds should be made available for direct implementation 

of projects on-the-ground, including the need for increased enforcement of conservation laws. Federal agencies should also consider devoting technical staff to assist the 

local resource agencies in this unprecedented military development. 

Finally, in the past, the local natural resource agencies have been denied access 

on the military bases to conduct surveys and assessments of marine, terrestrial, and 

endangered species resources. With the increase in military buildup, these surveys 

are vital to ensure the conservation and protection of the resources. The Department 

of Defense needs to coordinate with the local natural resource agencies and provide 

access onto the military base to conduct these surveys and assessments. 

Invasive Species 

Throughout the planning process, special attention should be paid to invasive species issues, including the brown tree snake and marine invasives. The increase in 

personnel and training activities, and subsequent traffic in and out of the ports of 

Guam, associated with the military build-up will increase the risk of the spread of 

invasive species across the region tremendously. Currently over $10 million per 

year is spent on brown tree snake (BTS) control and eradication alone. Guam has 

suffered severe economic impact, numerous species extinctions and a major ecological disaster due to this invasive reptile. The BTS is directly responsible for the extinction or local extirpation of 9 of 12 native forest bird species and 3 of 12 native 

lizard species in Guam. It also preys upon an endangered fruit bat of which fewer 

than 300 individuals are left in the wild. 

BTS climb utility poles and cross electrical power lines, causing numerous power 

failures each year. From 1978 to 1997, BTS caused more than 1600 power outages. 

Recently the rate has increased to nearly 200 outages per year. These power outages 

cost millions of dollars in damaged equipment, lost productivity, repair costs and reduced income from tourism each year. 

The high densities of BTS on Guam, combined with Guam’s importance as a shipping hub, make the spread of BTS from Guam a critical threat to other Pacific Islands such as Hawaii, the Commonwealth of Northern Marianas Islands (CNMI), 

Samoa, the Freely Associated States (Palau, Federated States of Micronesia, and the 

Marshall Islands), and subtropical regions of the U.S. mainland. In the last ten 

years, BTS have been sighted on Tinian and Saipan (both islands of the CNMI). 

Since 1982 there have been 69 credible BTS sightings and 13 captures in the CNMI. 

A total of eight BTS have been found in Hawaii since the mid 1980’s, but no live 

snakes have been found on Hawaii since 1994, thanks to Congress’ support for full 

implementation of U.S. Department of Agriculture’s (USDA) Animal and Plant 

Health Inspection Service (APHIS) Wildlife Services (WS) interdiction activities. All 

snakes found on Hawaii were associated with the movement of civilian and military 

vehicles or cargo from Guam. In addition, BTS have been credibly sighted, captured, 

or found dead in the following locations: Corpus Christi, Texas; Anchorage, Alaska; 

Wake Island, Pohnpei, FSM; Darwin, Australia; Diego Garcia (British Indian Ocean 

Territory); Taiwan; Okinawa, Japan; and Rota, Spain. The potential cost of a BTS 

invasion is immensely high. A University of Hawaii economic study recently estimated that the introduction of BTS to Hawaii could cost the state between 

$29 million and $405 million annually. 

Recently Deputy Assistant Secretary of the Navy for Environment Donald 

Schregardus traveled throughout Micronesia and discussed the possibility of conducting future training exercises in the freely-associated states, increasing the risk 

further. Prevention is always preferable and more cost-effective than attempts at 

control or eradication. The islands in the region have already started to work together on this issue, forming the Regional Invasive Species Council. Teams from 

several islands, including Guam are members of the Pacific Islands Invasive Learning Network, which was launched with U.S. government support. Guam and the region need continued technical and financial support from the U.S. government to 

86

develop and implement appropriate and cost-effective prevention and rapid response 

efforts. 

In addition, the Department of Defense needs to implement expanded internal 

programs to control, eradicate, and prevent the spread of both terrestrial and marine invasive species. For example, currently there is no bilge-management plan in 

place for their port operations. DOD should develop and implement a plan and assist the Port Authority of Guam to do the same, to prevent the spread of marine 

invasive species. Further, the Governments of Guam and the Northern Mariana Islands need the support of the U.S. Departments of Agriculture and Homeland 

Security-Customs Border Patrol to allow a higher level of prevention and quarantine 

capacity to protect themselves from new introductions of invasive pests that could 

threaten the fragile natural systems, economies and lifestyles of these islands. 

Ancillary impacts 

As Guam has experienced in the past, ancillary development in the private sector 

will accompany the military build-up as investors speculate on the expected economic growth. For example, there is already 1 new large-scale development planned 

for an area encompassing prime coastal land and native limestone forest, in the 

northern part of the Tumon Bay Marine Preserve. The local resource agencies, already struggling with the additional workload associated with the military build-up 

must also assess the impacts from these ancillary developments in the private 

sector. 

In addition to the direct impacts from ancillary developments, there will be a need 

to import a great deal of labor to supplement Guam’s existing construction industry. 

An estimated 12,000-15,000 construction workers will be needed and, with an estimated 85-90% coming in from off-island, they will have an impact on our resources 

as well. Not only in terms of an additional burden on our water and sewage systems, but also in terms of fishing and gleaning on our reefs in our coastal waters 

to supplement their diet. There will be a need for increased enforcement of and education about Guam’s marine preserves and other fishing regulations as these workers are often unfamiliar with local laws. 

The Department of Defense should work with local resource agencies to develop 

a program to educate all military personnel, their dependents, and contract workers 

about the value of Guam’s natural resources and the laws protecting them. Financial support to improve infrastructure and increase the operational capacity of enforcement for conservation laws should be part of the annual funding required 

under the Department of Defense’s Sikes Act agreement with the Government of 

Guam. 

Green Infrastructure 

Guam is an island with limited natural resources, and we therefore encourage the 

use of green infrastructure and sustainable building practices in the design of all 

new military construction. The military expansion will require a number of largescale infrastructural developments to house personnel and their dependents and 

support operations. It is important that these developments are designed and built 

for maximum energy and water efficiency, including the use of green belts and 

green space planted with native species, renewable construction materials, water 

catchments, and alternative energy sources, such as solar panels. The overall benefits of this strategy will far exceed the costs of including these modifications as they 

will decrease operating costs and minimize the military’s dependence on off-island 

supplies of fuel for power. It will also minimize the military’s ecological footprint 

on this small island. Including this now, in the design stage, will be more cost-effective than having to retrofit structures in the future and will result in cost savings 

and a reduction over time in the dependency on non-renewable resources. We encourage the Department of Defense to follow guidelines in the Leadership in Energy 

and Environmental Design (LEED) Green Building Rating System for New Construction & Major Renovations (http://www.usgbc.org/Docs/LEEDdocs/

LEEDlRSlv2-1.pdf). 

Sustainable Drinking Water 

The Northern Guam aquifer, designated a ‘‘principle source aquifer’’ in 1978 by 

the U.S. Environmental Protection Agency, is the primary drinking water source for 

the island, servicing 80% of the population. The aquifer has been formed from recharge from rainfall in northern Guam percolating through surface soils to the underlying cavernous limestone where it accumulates in a lens which ‘‘floats’’ on and 

displaces the denser sea water. Although efforts have been made to determine the 

recharge rates and water quality of segments of the aquifer, funding is needed to 

conduct a comprehensive baseline study for the whole aquifer. 

87

The Department of Defense owns a substantial amount of land in northern Guam 

and thus plays a critical role in protecting Guam’s northern aquifer. The Department of Defense should strive to maintain existing forested areas on their land and 

restore denuded areas with native forest. This will help to enhance recharge rates 

and maintain water quality. 

Southern Guam is comprised of volcanic soils and contains several watersheds. 

There are currently 2 main drinking water sources in southern Guam: Fena Reservoir and the Ugum River. Both sources suffer from heavy sediment loads and require significant watershed restoration. The Department of Defense is currently conducting some watershed restoration efforts in the watersheds feeding Fena Reservoir, and the Government of Guam is currently implementing the Ugum Watershed Restoration Strategy, but more funding is required to truly restore native forests in both areas, ensuring a sustainable drinking water supply for our growing 

island population. 

Protection and Enhancement of Public Shoreline Access to the Ocean’s 

Resources 

The people of Guam have a long history of dependence on and sustainable use 

of coastal and marine resources. Thus the protection and enhancement of public 

shoreline access to Guam’s ocean resources is a major concern for the community. 

One of the primary goals of the Guam Coastal Management Program, developed 

under the Coastal Zone Management Act of 1972, is the protection and enhancement of public access to the ocean’s resources for recreation purposes. Public access 

to these resources is also vital to tourism, the island’s main industry. Dive tours, 

fishing charters, and boat tours provide significant income to the island’s economy. 

Unfortunately, an expansion in military installations and associated security restrictions often result in the restriction of access to the ocean’s resources for the 

residents of Guam. For example, in 2001, public shoreline access was restricted to 

the Glass Breakwater and Luminao Reef. Prior to these restrictions, the area was 

frequented by the public, including the military population, for activities such as 

fishing, surfing, snorkeling, and diving. The closure of the area has increased recreational pressures in other areas, resulting in negative impacts to coral reef resources in protected areas such as Piti Bomb Holes Marine Preserve. 

We encourage the Department of Defense to work with Guam’s local agencies and 

the community to identify opportunities for collaboration and joint planning to protect and enhance public shoreline access to the ocean’s resources under military jurisdiction. 

The Micronesia Challenge 

In January 2006, Governor Felix P. Camacho signed the Micronesia Challenge 

(MC), a commitment by the Chief Executives of Guam, the Commonwealth of the 

Northern Mariana Islands, the Federated States of Micronesia, the Republic of the 

Marshall Islands, and the Republic of Palau to effectively conserve at least 30% of 

the near-shore marine resources and at least 20% of the terrestrial resources across 

Micronesia by 2020. 

The MC was conceived as a result of the deep commitment of these five leaders 

to ensure a healthy future for their people, protect their unique island cultures, and 

sustain the livelihoods of their island communities, by sustaining the island biodiversity of Micronesia. The MC also contributes to global and national targets set 

out in the Millennium Development Goals, the Johannesburg Plan of Implementation for the World Summit on Sustainable Development, the Mauritius Strategy for 

Small Island Developing States, the U.S. Coral Reef Task Force National Plan of 

Action and the relevant Programmes of Work of the Convention on Biological Diversity. 

TNC is a member of a Regional Support Team, along with Conservation International (CI), the Secretariat of the Pacific Regional Environment Programme 

(SPREP), U.S. National Oceanic and Atmospheric Administration (NOAA), RARE 

(formerly RARE Center for Tropical Conservation), the Micronesia Conservation 

Trust (MCT), the Locally Managed Marine Area Network, the Community Conservation Network, the Pacific Islands Forum, and the U.S. Department of the 

Interior. The team was formed to provide strategic assistance and external resources 

required for effective implementation of the MC. 

The MC Steering Committee, made up of government focal points from each jurisdiction, is providing regional coordination and is recruiting a Regional Coordinator 

to advance MC activities across the region. Guam and each of the other four jurisdictions are designing their own strategies to implement the MC involving partnerships between Government agencies, NGOs and local communities. For Guam, a 

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holders for input, focused on strengthening and more effectively managing existing 

marine and terrestrial conservation areas rather than establishing new sites. As a 

significant landowner on Guam, the Department of Defense will be a key partner 

in helping to achieve this, especially the restoration of native forest in the areas of 

the Guam National Wildlife Refuge Overlay under their jurisdiction. 

TNC is also assisting local partners on Guam to develop a sustainable finance 

plan to be completed in early 2008. The plan will identify the funding needed to 

effectively manage Guam’s natural resources and meet the goals of the MC. The 

plan will also identify key strategies, from internal and external sources, to secure 

the necessary funding, including the building of an endowment. 

This military build-up poses one of the biggest challenges to Guam’s vision to 

achieve healthy natural resources available for the sustainable use of ours and future generations. But at the same time, it can provide one of the biggest opportunities to attain long-term sustainable funding of the work needed to achieve this same 

vision. As stated above, we support the local government’s proposal to explore the 

possibility of using a portion of the amount of money required for compensatory 

mitigation to help build Guam’s and CNMI’s pieces of the MC endowment. Other 

innovative and creative solutions, some of which may require specific federal enabling legislation, will be required to turn this tremendous challenge into an equally 

tremendous long-term opportunity for the people, culture, sustainable economy, and 

natural resources of Guam and Micronesia as a whole. 

Summary of Key Recommendations 

There is a critical need for Congressional support for: 

1. Early and adequate funding to compile comprehensive baseline data and a 

fully integrated analysis, considering the direct and indirect cumulative effects 

of this enormous build-up, required under NEPA. 

2. Department of Defense funding for planning for mitigation actions and additional technical assistance prior to EIS completion and project implementation. 

Due to extremely short deadlines and current capacity limitations, the local 

and federal natural resource regulatory agencies need help to properly assess 

alternatives and plan for mitigation actions. Greater flexibility in DOD project 

funding and implementation is needed, so they can incorporate public input on 

the very short timelines required to complete this move by 2012. 

3. Increased allocations for existing federal grant programs to support operational 

capacity for local natural resource management agencies and organizations, 

based on the capacity needs assessments for the Government of Guam currently being developed. These allocations are critical to allow natural resource 

agencies to meet the Department of Defense’s timelines in preparation for the 

projected population increase, associated development, increased pressure on 

natural resources and invasive species prevention and control to avoid devastating economic, social and environmental impacts. This additional funding 

should be used to implement projects on-the-ground in Guam, including increased enforcement of conservation laws. 

4. Joint DOD/Gov Guam programs to educate all active military, their dependents, and contract workers on Guam’s environmental laws and the value of 

Guam’s natural resources. 

5. Department of Defense to follow guidelines in the Leadership in Energy and 

Environmental Design (LEED) Green Building Rating System for New Construction & Major Renovations (http://www.usgbc.org/Docs/LEEDdocs/

LEEDlRSlv2-1.pdf). 

6. Sustainable funding for natural resource management activities in Guam and 

the CNMI. Using the sustainable finance plans for natural resource management being developed in Guam and the CNMI, Congress, the DOD and local 

governments need to work together to identify appropriate long-term funding 

mechanism(s) for the expanded environmental programs required by this military build-up. We strongly encourage Congress to support Governor Camacho’s 

proposal to allocate a percentage of all Department of Defense appropriations 

related to the military build-up, above and beyond funding for mitigation, to 

build a conservation endowment. The interest derived from this endowment 

would be used for the long-term, stable funding of. critical natural resource 

management programs. 

Again thank you for the opportunity to testify and I hope this testimony will be 

useful to assist you with addressing some of the very real challenges facing the community as we prepare for the military build-up on Guam. 

I would be pleased to answer any questions at this time. 

89

Mrs. CHRISTENSEN. The Chair now recognizes our final, last, but 

not least, the Guam Contractors Association, represented by Mr. 

John Robertson. 

STATEMENT OF JOHN ROBERTSON, CHAIRMAN, GOVERNMENT, MILITARY AND LABOR AFFAIRS COMMITTEE, GUAM 

CONTRACTORS ASSOCIATION 

Mr. ROBERTSON. Thank you. Maybe you save the best for last. 

Honorable Chairwoman Donna Christensen, Honorable Madeleine Bordallo, honored guests, ladies and gentleman, thank you 

for inviting the Guam Contractors Association to address this important forum. Our association represents almost 290 firms, about 

60 percent of whom are contractors. 

My name is John Robertson. I’m a member of the Board of Directors and I’m also the Chairman of the Committee on Military, Government, and Labor Affairs. 

Guam Contractors have considerable capability and capacity and 

will form the backbone of whatever construction effort occurs on 

Guam. A matter of concern to us is the high cost of construction 

on Guam. With an area a factor of 2.64, our construction cost is 

judged by the military to be the most expensive on the planet, 

other than Greenland and a few isolated spots in Alaska. 

This high cost can be attributed to two factors: First, logistics, 

and second, skill level of workforce. And it is something we have 

been working with NAVAC (phonetic) to rain in over the last number of years. This is what I wanted to discuss with you today. 

Now, we will forgo discussion of logistics so we can talk about the 

workforce. Guam’s workforce is adequate for normal needs. It was 

mentioned earlier, the $400 million per year volume; that number 

actually came from the Guam Contractors Association to Captain 

Boone a couple of years ago. However, demographics is catching up 

with us and young people are needed to replace those set for retirement. Specialized skill sets among much of our workforce is unfortunately below standard, thus there’s a lot of re-work. 

As many residents of Guam and neighboring islands as possible 

must be drawn into the expanding job market associated with the 

military buildup. The GCA established the Trades Academy last 

year for developing a local skilled workforce for construction and 

related trades. We have conducted initial meetings with the Presidents of the University of Guam, Dr. Allan, and Guam Community 

College, Mrs. Okada, in our working on a strategy to serve the 

needs of the community as a coordinated and non-competitive effort. It was agreed between us that all of our efforts are required 

to make this happen. Neither one of us can do it alone. 

It was also agreed that we should conduct a joint campaign to 

try to draw people from the local island into our industry, which 

to many of you is menial labor that they don’t want to get involved 

in. But actually, it is a career that the people can be very proud 

of. Federal support is needed for action during the compressed 

timeframe in getting these people up to speed. 

You will ask why we have formed the Academy, since there is a 

community college on Guam doing the same thing, and I must answer that important question. We have learned that ABC-affiliated 

90

contractor associations across the U.S. are doing this because community colleges are moving toward a more academic track. 

The same has happened on Guam, and that is a good thing in 

many respects, except that we have not seen trainees entering the 

construction field for a number of years. We are taking people, 

some of which are high school dropouts, and by the way, we unfortunately have a 50 percent dropout rate in high school on this island. We are taking these people, with interest in working with 

their hands, and providing them with a career doing what they 

want to do. Many of these will later complete their GED and rise 

to the top ranks of contract organizations or become entrepreneurs. 

Training will not produce sufficient numbers of workers for the 

boom, but will provide and trained and experienced workforce for 

steady state construction and maintenance requirements that will 

follow. 

We have verified that the skilled workforce and CONUS is in 

short supply, and mainland contractors are using workers from 

Mexico and Central America. We must turn once again to Asia for 

the numbers of skilled workers we will need. 

The GCA Trades Academy was organized with expert legal assistance as a private sector, non-profit institution of learning. It is 

duly certified for the purpose by local and Federal authorities. It 

is under the very capable direction of Mr. Bert Johnston, who has 

experience in industry, as well as education. Training curricula is 

from the Contren Learning Series, as developed by the well-funded 

National Center for Education and Research. This series is used by 

construction trades academies across the U.S. by both union and 

open-shop contractors. Graduates receive a certificate from the 

NCCER, as well as the U.S. Department of Labor. 

The GCA training program has been accredited by the U.S. Department of Labor for more than 20 years. It includes an apprenticeship component with local contractors. We currently have 50 

students in the program in five different trades. Tuition is being 

paid by employers or by the trainees themselves. This amounts to 

from $2,500 to $3,000 per year, per student. Some have become employed as a result of joining the Academy. 

So far, there’s been no government support. We are in discussions with the Guam Department of labor, however, and they expect to secure WIA grant funding to cover tuition for students that 

need such support. We understand that the Office for Economic Adjustment has funding for workforce training, and we are expecting 

that some of that funding will be directed toward the students in 

our Trades Academy. That is the only way that we can grow from 

50 to 200 students over the next 12 months and to 500 the year 

after. 

We expect some subjects will be taught at the Community 

College and some at the Trades Academy in a coordinated manner. 

Management, supervisory, pre-engineering, and administrative 

courses will be taught at UOG or GCC as appropriate. 

We need facilities for the Academy. So far, we are using our conference room and some rented facilities, but we do need to get our 

own facility, which we have plans for, and that’s covered in the 

written testimonies I will not repeat. 

91

Guam is under the same Visa quota system as the rest of the 

U.S. A Visa waiver or a special class of Visa is needed to remove 

this major obstacle. It should be applied to military as well as 

GovGuam and private sector projects, not just government. We suggest that control on this should be under the Department of Labor, 

local Department of Labor. And it should, importantly, be open to 

H1 professionals, as well as H2 skilled workers. 

I’ve run out of my time, so I will stop in the middle of my presentation. Thank you very much for allowing us to present. 

[The prepared statement of Mr. Robertson follows:]

Statement of John M Robertson, PE, Chairman, Government, Military, and 

Labor Affairs Committee, Guam Contractors Association 

During a previous construction boom on Guam in the 1990’s when a number of 

Tumon Bay hotels and Leo Palace were built, major Japanese contractors managed 

the work using the local Guam contractor community. The work was actually executed with local contractor provided work force that were mostly brought to Guam 

for the purpose from Asia. The peak level was 10,000—12,000 workers which would 

appear to be about 40-50% of the Marine Corps relocation requirement. One of the 

major differences is that the peak of the construction boom in the early 1990’s lasted 

1 to 2 years. The Marine Corps relocation on the other hand will cover a span of 

approximately five years. This will prove beneficial as the return on investment can 

be spread over a longer timeframe. 

Contractors on Guam have considerable capability and will form the backbone of 

the construction effort. The local construction community will provide the majority 

of labor, equipment, barracks and quarries needed for the program. Improved information flow will allow the local contracting community to plan and make capital investments before 2010 and before contracts are signed. The local construction industry has the labor, equipment, supply lines, and maturity to take the lead in executing the work. 

There are two issues that require much thought, planning and legislation at the 

local and national level. They are discussed herein below. 

1. Materials Procurement and Logistics, including shipping and ground transportation. Ideas follow. 

a. Buy American Act. Guam is more a part of Asia than CONUS, geographically. 

Importation of quality materials from Asia should be permissible as a means 

of reducing cost to the government. Please note that U.S. projects performed 

abroad normally permit use of materials manufactured within the host country 

or the United States. While Guam is part of the United States, the same principal does apply in some sense. Note further that most U.S. products now contain many components from abroad. Prequalification of acceptable Asian vendors should be initiated sooner rather than later. 

b. U.S. Flag Shipping. Again, because of the location of Guam in the western Pacific, provisions of the Jones Act and rules of the Maritime Administration 

should be waived to allow direct shipments from Asia to Guam. U.S. Flag shippers could modify routes for some of their vessels to participate in that business. Currently, U.S. Flag vessels sail from U.S. west coast or Hawaii to Guam 

then to Asian ports then directly back to the U.S. west coast. 

c. Guam Seaport. The Port Authority of Guam has for more than five years been 

attempting to outsource management of terminal operations and secure new 

container cranes but have not been able to do so because of political considerations. Furthermore, Foxtrot Wharf should be extended and the channel 

dredged. The federal government may need to take the lead in making these 

important things happen. Alternatively, Navy wharves may have to be made 

available and equipped for the purpose. 

d. Local Vendors. Local Guam vendors should be encouraged to stock, fabricate 

and supply common materials to contractors. An exception would be the most 

specialized of items. This will facilitate savings in cost and time and allow for 

changes that invariably occur. It will also cause a strong vendor base to emerge 

that now only partially exists on Guam. The federal government may need to 

provide leadership in encouraging local businesses and especially small businesses to gear up to serve as a major supply chain and thereby serve the community as well as the military buildup. 

e. Road Improvements. Roadways on Guam are currently over-used and are in 

generally poor condition. Necessary improvements should be made by midVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00095 Fmt 6633 Sfmt 6621 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
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2009. Route 1 from Seaport and Piti to Hagatna should be widened to 6-lanes 

and otherwise brought up to standard. Route 8 and Route 16 should be widened to 6-lanes for their entire lengths and brought up to standard, especially 

the intersection of Route 8 with Route 1. Harmon Loop Road should be extended from Route 16 to Route 1 as 6-lane and brought up to standard. A better connection from Route 16 to Route 3 should be established, by-passing the 

vicinity of Micronesia Mall for access to the vicinity of NCTS. 

2. Workforce Availability, including training, logistics and management. 

Ideas follow. 

a. An adequate workforce is not available on Guam. Since skilled tradespersons 

are in short supply in CONUS, the main workforce for Guam will have to be 

recruited from Asia. Although there may be some pressure to utilize skilled 

workers from Japan and especially Okinawa, this may not be the most cost effective solution for the skilled workforce. 

b. As many persons as possible from Guam and neighboring islands must be 

brought into the workforce. The University of Guam and Guam Community 

College are training young people that will occupy important positions in construction as well as other segments of the expanding economy. 

c. The Guam Contractors Association has established the GCA Trades Academy 

that is now in operation with about 45 students. This initiative is designed specifically for developing a skilled construction workforce. It is based on curricula 

of the Contren Learning Series as published by NCCER—National Center for 

Education and Research. It is used extensively in CONUS by open-shop and 

union trades training centers. The Guam Contractors Association training program is and has for more than 20 years been accredited by the U.S. Department of Labor. It includes an apprenticeship component with local contractors. 

Please see the Attachment that provides additional information on this important subject. A few key items relative to the GCA Trades Academy 

i. The Board of Trustees is intent on proceeding in close cooperation with 

the University of Guam, Guam Community College and the Guam Public 

School System in carrying out common objectives. 

ii. A funding stream for students in the program is not yet mature. 

Contractors and some students have been covering the tuition expense 

and rapid growth is dependent on adequate financial support. Grant 

applications through the Guam Department of Labor, and others is in 

process and federal funding is expected to commence flowing into the 

program in the months ahead. 

iii. Funding is needed to fit-out a training facility that will cost about 

$525,000. Some member firms and local business establishments have 

already contributed into this fund. 

d. A Visa waiver or other mechanism needs to be established to ensure an adequate supply of H2B workers for Guam. Guam is currently a participant in the 

same quota pool as the rest of the United States. The quota is normally used 

up within days of approval and this denies Guam contractors adequate opportunity to meet its needs. Please note that Guam is not contiguous with other 

states of the United States and cannot lure skilled workers from across state 

lines. The GCA and Chamber of Commerce have been working this issue together for the past 2 years. Some push from the federal government is needed. 

As one option, we recommended the establishment of an H2G visa or similar 

program specifically for Guam and for the duration of the military buildup. 

Some further points: 

i. It should apply to military as well as non-military projects since military 

construction will be the driving force for private sector projects that are 

also important to the island and the military. 

ii. Visa issuance is under the U.S. Department of Immigration. If the waiver 

can be lifted or special visa program implemented, we suggest control on 

applications be established as a responsibility of the Guam Department 

of Labor with assistance and support from the U.S. Department of Labor. 

Authority has been delegated to the governor who has in turn assigned 

it to the DOL. 

iii. In order to facilitate control and without overburdening the DOL, 

regulations might require the endorsement of prime contractors for 

applications of their subcontractors, consultants and other vendors.

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iv. The special class of visa, as recommended, should be open for professional 

as well as skilled trades. Engineers, architects, administrators and 

supervisors will be needed by construction contractors. The expanding 

economy will require use of foreign doctors, nurses, accountants and 

many others professionals and the existing restrictions should be lifted 

for them as well.. 

v. A sunset provision may be necessary for approval of a waiver or other 

special visa category. This is important for the local economy as well in 

that local workers should always be favored over foreign. The sunset 

provision might be tied to a certain overall level of construction volume—

such as less than $250 million per annum of new construction starts over 

a two year period. 

e. Potential foreign workers need to be screened with background checks in their 

home country to ensure that undesirables do not slip into Guam as part of the 

workforce. Assistance from the federal government will be needed. Contractors 

will be responsible for skill assessments. 

f. Few contractors on Guam now have worker accommodation conforming to current day standards. What is available is not adequate to meet anticipated demand. Camp type housing should be set up and operated by specialist contractors for the duration of major construction to make up for the difference. This 

approach would be less costly in overall sense as opposed to each construction 

contractor providing his own. Worker accommodation should be located separate from local residential communities. 

g. Worker accommodation should include a clinic, recreational and other facilities 

to avoid overtaxing existing similar facilities on Guam. 

h. There have been compliance difficulties in the past on Guam using non-immigrant alien labor. Guam’s principal contractors want there to be a level playing 

field with all participants playing by the rules. Guam DOL will require support 

from the federal government on compliance monitoring and enforcement. 

i. Management, engineering, administrative and supervisory personnel brought to 

Guam from the U.S. and elsewhere will have requirements beyond those of the 

workers. This is especially true since they will in many cases be engaged on 

family accompanied status. They will require higher level accommodation, medical facilities, schools and other services not now available in adequate supply. 

Some of these facilities could be made available by the private sector through 

encouragement of some kind. Because of timing, the federal government may 

need to incur some upfront cost with the idea of selling the facilities when 

major military construction is done. Some local private schools might be persuaded to expand in the near term to accommodate the temporary surge. 

j. Guam Memorial Hospital is the only hospital that serves the civilian community on Guam. It is currently not JHACO certified and is in need of some upgrades. This matter needs urgent attention in order to not deter senior managers and engineers from living and working on Guam. On the other hand, a 

field hospital could be set up and utilized for the duration of the elevated level 

of construction. 

k. Unskilled workers are available on Guam and none should be brought in from 

abroad. There is a sizable migrant community on Guam from FSM and with 

some training can be highly productive in unskilled positions. Some will over 

time move into the ranks of the skilled workforce. This also is a focus of the 

GCA Trades Academy. Utilization of this segment of the resident population 

is important to the local economy and the tax base. 

l. Flights to and from Guam are becoming increasingly crowded. Another carrier 

could perhaps be persuaded to extend service from CONUS with direct flights 

to Guam and thus create a competitive environment that does not now exist. 

We trust the foregoing is helpful. 

Guam Contractors are following closely all news concerning the military buildup 

on Guam. We are hopeful that some clarity will emerge during the coming months 

on what can be expected. We, the board of directors of the Guam Contractors Association, offer our services and expertise to the Sub-committee on Insular Affairs in 

planning for this major construction boom that will change forever the way Guam 

does business and the way it is perceived by the world. 

Sincerely, 

Guam Contractors Association

94

Jerold Johnson 

James Martinez 

John Robertson 

President, Board of Directors 

Executive Director 

Chair, Government, Military and Labor 

Affairs Committee 

Attachment: GCA Trades Academy—A Brief Overview 

GCA TRADES ACADEMY

A BRIEF OVERVIEW

(August 2007) 

The GCA Trades Academy, in affiliation with the Guam Contractors Association, 

is the principal provider of skilled trades training in construction and related fields 

on Guam. These two organizations are supported through further affiliation with a 

major contractors association and an educational institution on the mainland United 

States. The link between these affiliations is described below. 

Guam Contractors Association (GCA) 

The Guam Contractors Association was founded in 1959 as a non-profit association with a membership comprised of approximately 250 construction industry and 

associate member organizations. GCA is the Guam Chapter of the Associated Builders and Contractors (ABC). 

Associated Builders and Contractors (ABC) 

Associated Builders and Contractors (ABC) is a national association representing 

more than 24,000 merit shop construction and construction-related firms in 78 chapters across the United States. ABC is the construction industry’s voice with the legislative, executive and judicial branches of the federal government and with state 

and local governments, as well as with the news media. ABC was founded in 1950 

and became the fastest-growing association in the United States. Today, ABC is recognized as one of the leading organizations representing America’s business community and the U.S. construction industry. ABC’s activities include government representation, legal advocacy, education, workforce development, communications, 

technology, recognition through national and chapter awards programs, employee 

benefits, information on best practices and business development through an online 

contractor search directory. 

GCA Trades Academy (GCATA) 

The Guam Contractors Association board of directors sponsored the incorporation 

of the GCA Trades Academy in September 2006 as a separate stand-alone non-profit 

organization. The GCA Trades Academy was established to provide a nationally recognized industry skills training center, support U.S. Department of Labor recognized apprenticeship training programs, and to support the skilled labor needs of 

construction contractors and related industries doing business on Guam. 

The GCA Trades Academy’s programs include: 

Craft Skills Training 

The Trades Academy maintains skills training programs using the latest 

Contren® Learning Series developed by the National Center for Construction Education and Research (NCCER) and other industry-recognized curricula to prepare interested participants for employment in the construction and construction-associated 

industries. This program was launched in October 2006. 

Skills Assessment & Certification 

The Trades Academy will establish a skills assessment and certification program. 

The program is designed to assess and certify the skill level of workers using assessment criteria developed by the National Center for Construction Education and Research (NCCER). The Trades Academy already has staff trained and certified to administer the program. This program is expected to be launched October 2007. 

Pre-Apprenticeship Training 

The Trades Academy maintains a craft-training program that support pre-apprenticeship programs using the latest Contren® Learning Series curriculum to prepare 

interested participants for employment in the construction and construction-associated industries. 

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Apprenticeship Training 

The Trades Academy maintains a craft-training program that provides related 

classroom instruction for the Guam Contractors Association, Hawaiian Rock Products, and Dick Pacific apprenticeship standards. These apprenticeship programs are 

registered by the U.S. Department of Labor as authorized under the National Apprenticeship Act of 1937 (Fitzgerald Act), as amended PL 75-308, 50 Stat. 664, 57 

Stat. 518, 29 U.S.C. 50, 50a, 50b. 

Advanced License Training 

The Trades Academy will establish a training program to prepare personnel qualified for advanced licenses to successfully pass their respective licensure examinations. This program is expected to be launched in October 2008. 

National Center for Construction and Education Research (NCCER) 

A decade ago, representatives from the nation’s leading contractors, manufacturers, and construction trade associations came together to establish quality standards 

for industry certification and training. 

Organizations competing against one another in business forged partnerships to 

embrace these common goals—to provide quality training for craft professionals; to 

keep the workforce safe; to provide for career advancement through management 

training; and to improve upon the image of the construction industry as a career 

choice for young people. These goals resulted in the establishment of the not-forprofit educational organization, the National Center for Construction Education and 

Research (NCCER), affiliated with the University of Florida’s M.E. Rinker School 

of Building Construction, located in Gainesville, Florida. 

With the support of a growing list of industry partners and its publisher, Prentice 

Hall, NCCER has evolved its training offerings from fifteen to over fifty different 

curricula, and has developed skills assessment tests for over 45 craft areas. 

Accreditation 

As the accrediting body for the industry, NCCER has established the benchmark 

for quality training. Working in partnership with industry and academia, NCCER 

has developed a system for program accreditation similar to those found in institutions of higher learning. 

NCCER’s accreditation process assures that students receive quality training 

based upon uniform standards and criteria. These standards are outlined in 

NCCER’s Accreditation Guidelines and must be adhered to by NCCER Accredited 

Sponsors, such as the Guam Contractors Association. The GCA Trades Academy is 

an NCCER-accredited training unit, one of more than 500 training facilities in 50 

states and eight countries. 

Instructor Certification 

As part of its accreditation process, NCCER has developed the Instructor Certification Training Program (ITCP). This program ensures the uniform and consistent 

delivery of training. Through this process, NCCER certifies the Master Trainer. In 

turn, the Master Trainer certifies the Craft Instructor. The Guam Contractors Association maintains a Master Trainer on staff and there are now more than 60 

NCCER-certified Craft Instructors on Guam. 

National Registry 

In an effort to provide students and craft professionals with industry-recognized 

credentials and assure national portability of skills, NCCER maintains a national 

registry with widely recognized credentialing and certification process. This National Registry provides transcripts, certificates, and wallet cards to students who 

successfully complete the Contren® Learning Series through an Accredited Sponsor. 

The valuable industry credentials benefit students as they seek employment and 

build their careers. 

Standardized Curricula 

In partnership with Prentice Hall, NCCER develops and publishes the Contren®

Learning Series. Built upon industry standards, this standardized, competencybased curriculum is taught nationwide by contractors, associations, construction 

users, and secondary and post-secondary schools. At least 24 State Departments of 

Education recognize the curricula. Contren® curricula are distinguished by unique 

training features: 

• Competency-based and contain measurable objectives 

• Developed by industry experts and educators 

• Modular in format and can be used for task training 

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• Meets or exceeds Apprenticeship, Training, Employer, and Labor Services 

(ATELS) requirements 

• Portable, industry recognized credentials 

VALUES—MISSION—VISION 

Values 

The GCA Trades Academy values: 

• Corporate responsibility 

• Equality 

• Personal and vocational growth 

• Excellence within our students, staff, and curriculum 

• Student assistance via career and financial counseling. 

Mission 

Our mission is to share with aspiring tradespersons the skills and knowledge required to advance in a variety of fields. We will offer financial aid and counseling 

assistance to those interested, and will guarantee equal opportunity employment to 

those who successfully complete our program. 

Vision 

To be a self-sustaining, profitable, world-class regional training center, with a 

state of art facility handling at least 400-500 students per annum by the year 2012. 

GOVERNANCE OF THE GCA TRADES ACADEMY 

The GCA Trades Academy is governed by a Board of Trustees currently made up 

of: 

John M. Robertson—Chairperson, Board of Trustees. Mr Robertson is a licensed 

professional engineer in Texas with 45 years management experience in construction and maintenance. He is currently president and RME of AmOrient Contracting 

Inc. 

William D. Beery—Vice-Chairperson, Board of Trustees. Mr Beery is a professional engineer in Hawaii with 30 years management experience in construction and 

maintenance. He is currently general manager and RME for Watts Constructors. 

Rita A. Edwards—Secretary, Board of Trustees. Ms. Edwards is the Assistant Director of Professional and International Programs (PAIP) at the University of Guam, 

which oversees the Professional Development & Lifelong Learning Center, Enterprise Development, and the English Language Institute. 

Monty A. McDowell—Treasurer, Board of Trustees. Mr McDowell holds a masters 

degree in electrical engineering. He served as an officer in the U.S. Navy for 22 

years and founded Advance Management in 1990 where he remains chief executive 

officer. 

Graeme M. Ridley—Trustee, Board of Trustees. Mr Ridley has 25 years experience in mechanical trades with advancement through education and examination 

equivalent to a bachelor’s degree in mechanical engineering. He is currently manager of the mechanical division of Smithbridge Guam Inc. 

Herbert J. Johnston, Jr.—Education Director. Mr. Johnston has a bachelor’s degree in education and a master’s degree in public administration, both from the University of Guam. He is currently completing requirements for a doctoral degree in 

business administration. Mr. Johnston is a faculty practitioner with the University 

of Phoenix, College of Graduate Business & Management. His work experience outside of education includes fifteen years with Guam’s only public water and wastewater system. 

GOALS AND STRATEGIC PLAN 

Some Goals of the Academy 

• To foster a safe, productive and sustainable workforce of craft professionals on 

Guam through effective training and apprenticeship 

• To build careers of a lifetime for young men and women of Micronesia that aspire to excel in a trade 

• To support the construction and maintenance industry in the region during an 

approaching period of significant growth 

• To be a vital and integral part of the public and private educational system on 

Guam for young people and adults 

• To be the premier institution of learning on Guam for those wishing to pursue 

an upward career path in construction and related activity 

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Elements of the Strategic Plan 

• Build on the long held accreditation from the U.S. Department of Labor for apprenticeship and training to improve the quality of skills in the region • Build on the long term relationship with the Guam Department of Labor to improve the quality of life for citizens of the region • Take full advantage of the accreditation and standardized curricula from the 

National Center for Construction Education and Research (NCCER) to offer current state of the technology training • As a private non-profit institution, offer quality craft training and apprenticeship at affordable rates while being self sustaining for the near term and into 

the future • Maintain the highest standard of instruction for up to 500 beginning students 

per annum through utilization only of NCCER certified craft professionals in 

the classroom and workshop training environment • Cooperate with contractors on Guam for fulfilling apprenticeship requirements 

on the path to journeyman status and beyond • Cooperate with the University of Guam and Guam Community College in career 

advancement for persons at all levels of potentiality • Establish the academy as a permanent institution and provide highest quality 

training for trades beyond the period of heavy workforce demand in the region 

FUNDING FOR THE GCA TRADES ACADEMY 

Startup Funding 

Initial startup funding for the Trades Academy came from the Guam Contractors 

Association and from voluntary loans from supporting members. The Guam Contractors Association assumed most costs incurred prior to startup, including especially 

the Education Directors salary and legal fees for establishment of GCA Trades 

Academy as a non-profit institution of learning. After startup, the Guam Contractors Association continues to assume the personnel costs of the Education Director, 

however, these costs are invoiced to the Trades Academy with no specific pay-back 

terms. Costs associated with the initial order of student texts and instructional material were approved and paid from GCA funds, which are to be reimbursed by from 

the proceeds of the sale of textbooks. 

Tuition Pricing Strategy 

The pricing strategy is based on the sale of individual training modules. Text 

books and workbooks are sold separately at NCCER retail rates. Additionally, lab 

fee are assessed on those modules with extensive shop work to cover the cost of material, supplies, and equipment use. 

Tuition fees are set at the minimal level to recover all direct and indirect expense 

incurred for instruction. Instructors are paid a flat rate for each module and this 

is a major cost included in tuition fee. Other costs include classroom rental, insurance premiums, electricity usage, record keeping and a proportionate share of business overhead. For the average student, tuition fees will not exceed $2,500 per year. 

Target Market 

Employer-sponsored students. These students are workers in the existing workforce needing to be upgraded through training and certification. The employer assumes some, possibly all, costs for tuition and supplies. 

Indentured Apprentices. These students are employed under an apprenticeship 

program and are taking classes to fulfill their related course instruction requirements. The employer assumes all of the costs of tuition and supplies. 

Self-sponsored students. These students are individuals that can afford to pay tuition and supplies. They anticipate being picked up for employment by a contractor 

after getting through the basics and possibly thereby becoming employer-sponsored. 

Note that employers can expect to receive a credit against Gross Receipts Tax of 

50% of authorized apprenticeship training expense actually incurred, for those apprentices that complete annual requirements through an accredited apprenticeship 

training provider. 

Government-sponsored students. These students are individuals that meet the criteria for government programs that provide educational financial assistance, such 

as through AHRD, Veterans Administration, and Department of Defense. In addition, a portion of amounts paid by contractors into the Manpower Development 

Fund (MDF) should be made available for apprenticeship training provided by the 

GCA Trades Academy. 

Privately-sponsored students. These students are individuals who have applied for 

and receive private funding assistance or scholarships, such as through the Guam 

Chamber of Commerce or the Center for Micronesian Empowerment. 

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Founders Guild 

The GCA Trades Academy Board of Trustees has agreed to the establishment of 

the ‘‘Founders Guild’’ for the purpose of securing funds for strengthening the financial base of the academy and in particular to finance the build-out of a training facility. The Founders Guild recognizes those that have and will provide voluntary 

contributions or soft loans for this purpose. 

The GCA Trades Academy recognizes that there are many in the community that 

have openly expressed support for the mission, vision, and achievements to date of 

the academy. The GCA Trades Academy is recognized as tax-exempt by both the 

local government of Guam and U.S. Internal Revenue Service. 

At the onset of establishing the GCA Trades Academy, five members of the Guam Contractors Association pledged $10,000 each for startup capital: AmOrient Contracting, Perez Bros, and Watts Constructors, Hawaiian Rock Product and Maeda 

Pacific. In June 2007 the First Hawaiian Bank Foundation provided a grant of 

$10,000. Taniguchi Ruth Makio Architects prepared the preliminary plan for the 

academy as an in-kind contribution. 

Training Facility In Tiyan 

The proposed GCA Trades Academy training facility in Tiyan is to be developed 

by renovating and fitting-out the former military operated ‘‘Jet Lanes’’ bowling facility for the new purpose. 

The facility is now in private hands, having been returned to the family of the 

original land owners. The owner is willing to lease the facility on favorable terms 

to the academy for 20 years with the possibility of extending the term as will be 

determined at a future date. The lease agreement is currently being drafted. 

The facility has a net floor area of just over 11,000 square feet. The undeveloped 

area at back side is owned by the same land owner and can be used for training 

of heavy equipment operators. Roads in the vicinity are lightly traveled and are 

therefore suitable for initial truck driver training. 

Planning calls for co-locating the Guam Contractors Association administrative offices at this site upon completion of renovation. The Center for Micronesian Empowerment will also occupy space in the facility and they will provide students to 

be trained in construction and related trades. All occupants will share proportionately in the costs of leasing and operating the facility.

Mrs. CHRISTENSEN. Thank you, but your full testimony is in the 

record and I know the staff has read it, and I’ve read the first part, 

not the appendix, so I have a little bit more to go on. But we’ve 

read it. 


37527.001.eps
99

Thank you for your testimony, and I’ll now recognize myself to 

begin the questioning. 

I’ll start with you, Senator Cristobal. Your testimony is very 

clear and very moving. Polls, as the one Mr. Ruder quoted, and 

there are others, I believe, have shown 75 percent or more of the 

people really support the military buildup. To what do you attribute the support? Do you think that there’s any place at which 

the two minds can meet? And, would your possible alternate process, the alternate process of that you mention in your testimony, 

would that be an avenue for it? 

Ms. CRISTOBAL. I had mentioned, Madam Chair, that we would 

like to see a process, a separate process, be engaged by Congress 

to basically ask the Chamorro people to make this informed decision as to whether we want the military buildup, and that’s in context with our status as an unincorporated territory and as a nonself-governing territory. 

Does that answer your question? 

I’m not sure if this survey was a scientific survey or not, Madam 

Chair. 

Mrs. CHRISTENSEN. Yeah. 

Well, I think it was within 4 points, plus or minus 4 points accuracy. 

Well, let’s just say that generally it is felt, even forgetting the 

poll, but the majority of people of Guam want the military buildup, 

maybe with conditions, but they want the military buildup. Your 

position is opposing the military buildup. Is there any place that 

you see that those two points can come together and meet and find 

some kind of consensus? 

Ms. CRISTOBAL. Let me just qualify. I think we need to take note 

of the fact that surveys like that would definitely come up with a 

favorable result. 

Basically, because we now comprise less than—we are about 

40 percent of the population, and as you continue to bring in U.S. 

citizens and other people that vote or that have these—that are 

part of the survey, you will continue to get favorable results. We 

have been militarized for so long. We lived with a very dependent 

mentality. We realize that. But we need, like I said, we need to 

have an informed decision before we vote on this. And that’s why 

I indicated that it must be an informed decision. 

We need to be educated about our alternatives. We know that 

international conventions say that we are allowed to determine a 

political status, the three options on U.N. Resolution 1541 that basically says we have the option of determining whether we want to 

be independent, freely associated, or——

Mrs. CHRISTENSEN. Sure. 

Ms. CRISTOBAL —in the words of U.S. citizens, whether we want 

statehood or full integration into mother country. 

So, these—Guam does not have a Chamorro history either. We 

don’t have—we are totally a colonized people, and surveys like that 

would produce those kinds of results. It is just not surprising at all. 

Mrs. CHRISTENSEN. OK. We would probably try—thank you for 

your answer. We will probably try to come back for some followup questions. 

100

Mr. San Nicolas, two-part question in a way. Are you supplying 

fresh produce to the military now? And, how major an increase in 

production, change in methods, new form—what is the potential to 

add manpower in this area? Are there programs in the schools that 

promote agriculture as an industry and as a profession, either in 

high schools or in the community college or University of Guam? 

Mr. SAN NICOLAS. Yes. Chairwoman Christensen, with regard to 

the first part on your question on the market with the military. 

Right now, the communication between the local farmers and the 

military is very minimal, and I do not know if any communication 

or any dialogue is going on. So, that’s why I am recommending that 

the military partner with the Guam Soil & Water Conservation 

District Board, because we represent the farmers from the north. 

The Northern Shore and Water Conservation District Board 

represents the farmers of the north; and the Southern Soil & Water 

Conservation District Board from the south represents the farmers 

from the south. And, with that, I think there’s a potential benefit 

here with the farmers of Guam and the military to provide fresh, 

local produce, and fish, and shrimp, aquacultural products. 

And along with that, the food security issue. I think it is more 

incumbent on the military to ensure that we grow and take immediate action regarding a food security. We read it in the newspaper, 

all those imports are coming in from foreign lands and are causing 

a lot of our problems. So, I believe it is in the best interest of the 

military and the farmers of Guam to partner in this area, and see 

how we can help each other increase the potential and ability for 

the farmers of Guam to use that military market. 

With the local community, as far as the market, we have some 

legislation in place right now that requires our Government of 

Guam agencies to buy local agricultural products. However, there’s 

a snag there, because recently there is another law that came in 

place that the local farmers have to meet USDA standards. And a 

lot of the local farmers never went for any kind of workshop or dissemination on that kind of legislation. 

And these are the things, I believe, that we need to visit with 

our good senators here in Guam, and see if we can maybe in the 

future, before legislation is passed like that requiring the farmers 

of Guam to meet USDA standards before we can market to our 

school cafeteria, I think they should have checked that with the 

local farmers and come up with some proposal and give us some 

timeframe, where we can be educated on what is the USDA standard. Because after all, yes, we do want food security for our children and for our teachers, and fresh produce, but we need to work 

together on this. 

With the education part, currently we are, with the Guam Soil 

and Water Conservation District Boards, along with the environmental education, we started what was called the Adopt a Watershed Project to entice teaching environmental education and farming issues through the Inarajan Elementary School as pilot projects 

and in Talofofo and Merizo. So, of course, the University of Guam 

here has education in that area for majors, I believe, and minors 

in the agricultural majors. 

Thank you for the question, Congresswoman Christensen. 

101

Mrs. CHRISTENSEN. And if I remember General Bice’s response to 

a question about buying local produce, I think from the Congresswoman, he was very open, so this seems like there’s a possibility 

for that to become a reality. 

I’ll recognize Ms. Bordallo for her questions now. 

Ms. BORDALLO. Thank you very much, Madam Chair. 

Senator Cristobal, I don’t have prepared questions for you, but 

you mentioned the status, and I want you to know that this would 

be a local endeavor, and once the people of Guam have made the 

decisions, that we will take that message back to the U.S. Congress. 

Guam spent nearly 10 years in this effort and a good $10 million. I sat on the Commission as well. So, I’m very familiar, 

and I want you to know that whatever the people of Guam decide, 

I will carry that to Washington, D.C. 

But I want to thank you for your very distinguished career, and 

as a past member of the Commission of Self Determination. 

I do have a question for Mr. San Nicolas. We were just talking 

about this—the USDA standards, is that local law? 

Mr. SAN NICOLAS. I believe it is a local law, a year or so ago. 

Somebody had the bright idea to incorporate that and made that 

a regulation for the farmers of Guam. 

Ms. BORDALLO. Well, then I guess your efforts have to be with 

the local Legislature. 

Mr. SAN NICOLAS. Yes. We had good senators that were working 

for the farmers to ensure that we capitalize in the market, you 

know, with the Government of Guam agency, and then somebody 

came up with that bright idea to put that burden on the farmers. 

I’m not against quality, meeting all the requirements, but I believe communication should be given to the farmers and maybe 

some kind of orientation before those kind of laws are put in place. 

And I also believed that public hearings maybe should have been 

afforded, especially to the farmers. 

Ms. BORDALLO. Mr. San Nicolas, I’ve always been very supportive of the farmers and agriculture. My late husband was a very 

strong leader in that area. The Green Revolution, we all remember 

that. 

You mentioned the strong desire of our farmers to gain access to 

expanded military markets on Guam, and I think I got from your 

testimony that it is not at its peak definitely now. And I concur 

with the desire to have locally grown fruits and vegetables sold in 

our commissaries and supplied to the ships that pull into port, and 

that come to our region for training exercises. 

Can you give us a sense of what the local production capacity is 

at this time? Do we have the capacity to provide the fruits and the 

vegetables to the commissaries and the ships, and so forth? 

Mr. SAN NICOLAS. Congresswoman, Madam Bordallo, I’m glad for 

that question. 

Yes, we definitely have that capacity. What we need is very similar to the Chamber of Commerce and other members that have 

come before you. We need to partner with the military, we need to 

partner with our local government, we need to partner with the 

hotel industry, so that we can motivate the farmers of Guam to 

maximize their productions. 

102

Right now, the major problem, or one of the major problems, is 

marketing our product. So, I believe that starting with the military, if we can partner and have some kind of dialogue, similar to 

the support that the local people and the elected officials are supporting the Chamber of Commerce or the tourism industry in helping any way to enhance the—like for example, the production and 

the imports that we are faced with, and the pests that are continually coming, and we call those invasive species; and those are the 

things that our local government and the Federal Government can 

assist us in combating the negative effects and the cost for that. 

But, yes, we definitely have the capacity if we are given the support and assistance that are needed with our endeavors. 

Ms. BORDALLO. Mr. San Nicolas, you mentioned marketing, I 

agree with that. I know that our crops do not include all types of 

fruits and vegetables. We are heavy on the melon and—some of the 

others, but would you say that, right at this time, we do have the 

capacity to provide the produce to these areas? 

I mean, I’m just thinking. I mean, would you——

Mr. SAN NICOLAS. Yes. 

Ms. BORDALLO. You would say yes to that? 

Mr. SAN NICOLAS. Yes. 

Just for example, for the aqua-culture farm that my family operates. If the military or the hotel industry would buy from us, we 

can meet their demands, especially in the local industry, and the 

same with the local farmers. 

The main reason the farmers are shy from maximizing their production, again, is because the market is very limited. And also the 

imports, the competition from the imports——

Ms. BORDALLO. And the USDA? 

Mr. SAN NICOLAS. Yes, definitely. 

So, those are the challenges that we need collaboration with our 

Federal and local officials to help improve those issues that we 

face. 

But we got good farmers out there that can really maximize their 

production, but right now we try to just meet whatever market demand that is there, given the situation that we are facing with the 

challenges of the imports and the pest problems, those invasive 

species. 

Melon can grow beautifully in Guam. Papaya can grow beautifully in Guam, and go year round. But we need to have support, 

such as the pilot projects that are happening throughout the island. 

We need those high breed papayas that are more resistant to the 

invasive species. But we do have the capacity to do that. We need 

the support from our, for example, our local Department of Agriculture. Now, we are partnering with the University of Guam and 

we are doing very good with the University of Guam. 

Ms. BORDALLO. Good. 

Mr. SAN NICOLAS. And so we are just looking to also capitalize 

on this opportunity with the military buildup here. 

The investment that they’re having here, I would like definitely 

that they look into the farmers of Guam and see how we can partner to have this mutual benefit that we can provide to them. 

Ms. BORDALLO. What about our schools? 

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Mr. SAN NICOLAS. Our schools are—that’s one thing I think that 

we need to look into the current legislation that I was informed of, 

and I think we need to revisit that legislation and see how we can 

improve on that. 

Ms. BORDALLO. Very good. 

Mr. SAN NICOLAS. Yes. 

Ms. BORDALLO. Very good. Thank you, Mr. San Nicolas. 

I do have more questions, if you’re going to call a second round. 

Mrs. CHRISTENSEN. Yeah. We will do another round. Thank you. 

Mr. Ruder, as we’ve met with different groups, and perhaps on 

the very first day, we began to hear that Japanese, Korean, and 

other companies outside of Guam who are already beginning to 

come in and position themselves to take advantage of this buildup, 

that they seem to know more than the local businesses here. Are 

those concerns some that the Chamber also shares? And, if so, how 

do you see the Chamber working to position themselves to ensure 

that the local businesses will have an equitable share, be very competitive, to benefit from the buildup? 

Mr. RUDER. Thank you, Madam Chairwoman. 

Sure, there’s concern, but having said that, borrowing from what 

Mr. Lujan was saying, there are certainly opportunities for Guam 

businesses and local businesses in particular to work through Federal and local organizations that are existing to complete the process of preferred designation status, whether it’d be ADA certification or small business, women-owned, minority-owned businesses. So, we think those opportunities are out there. 

The Chamber is very active in that regard through the Small 

Business Committee at the Guam Chamber of Commerce, and 

working actually very closely with Mr. Lujan’s office, as well as 

SPDC out at the University. 

Mrs. CHRISTENSEN. Do you feel that there’s information that’s 

being shared outside of Guam that you’re not receiving? 

Mr. RUDER. My inclination, and I’ve learned a lot here this morning, again, thank you for having me, but my inclination is that—

and I think as you stated, this is a long process, and I trust the 

folks that are involved both locally, as well as on the Federal level. 

And I trust that, as information becomes available, that it will be 

shared and that the opportunities, in particular in our case for 

local small businesses, will present themselves. 

Mrs. CHRISTENSEN. OK. Thank you. 

Ms. Leberer, much has been made about—in the initial panel, by 

the military that the NEPA process and the EIS will afford the 

public the opportunity to have their concerns about the—all of the 

impacts, but in particular, their concerns about the negative impacts of the buildup on their culture and way of life addressed. Do 

you share this view? 

Ms. LEBERER. Thank you for the question, Madam Chairwoman. 

And I think it is—there’s a couple of answers to that. I think 

that, there’s one EIS for the relocation, but there’s a myriad of 

projects that are occurring in this entire military buildup, and they 

are not all connected. And so in order to really look at cumulative 

impacts, I think that that’s not being met. 

Another problem that, they did have open houses, DOD did have 

some open houses, with some very general, very vague information 

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for the public, and the public was asked to comment sort of on anything they could think of that might be an issue. And then that 

was incorporated, and as General Bice pointed out, I believe he 

said 900 comments were received. But those are received on sort 

of the general idea of relocation of the Marines and not on very 

specific information. 

And when this gets to the point where the EIS is—the draft EIS 

has been released with more specific information and alternatives, 

then the local agencies and the community will have a very short 

timeline to comment on that, and it will have already been a little 

too late for some—if new technologies arise or new alternatives 

come too late, then even DOD’s hands are a bit tied and they won’t 

necessarily be able to address those. 

Mrs. CHRISTENSEN. How would you recommend we deal with 

that? 

Ms. LEBERER. Perhaps some enabling legislation from Congress 

to allow DOD a little more flexibility in the EIS process to really 

incorporate input and alternatives throughout the process might 

help. 

I can provide more substantial information——

Mrs. CHRISTENSEN. And do you see any role for the local government and the Legislature and——

Ms. LEBERER. Well, the local government is trying very hard to 

review everything that they can. And in my written testimony, I 

talked—and I alluded to the need for increased capacity for the 

local agencies. 

The local resource agencies are really capacity strapped in terms 

of human resources and financial resources, and so some of what 

Congress can do to help too would be to increase allocations for existing Federal grants and also to release some of the DOD project 

funding in advance, so that local and Federal regulatory agencies 

can use those funds to help really assess the alternatives in the impacts. 

But I think that the local agencies themselves are trying very 

hard to be a part of this process, but they’re just really capacity 

strapped. 

Mrs. CHRISTENSEN. Thank you. 

With your permission, Madam Bordallo, I’m going to just ask my 

last question. 

Ms. BORDALLO. OK. 

Mrs. CHRISTENSEN. And then I’ll turn to you and let you complete yours. 

Mr. Robertson, this is a problem that we face in the Virgin Islands. You mentioned that some of the people who could probably 

benefit from the buildup by receiving the training and becoming 

newly employed with their new skills are not interested in working 

in jobs that require manual labor. 

Is there anything that you see that can be done or is being done 

to increase the interest of that group of individuals in coming into 

this workforce and taking advantage of the opportunities? 

Mr. ROBERTSON. Yes. We did commission a study a couple of 

months ago on that very question, and we realize that we have to 

put together an ad campaign, maybe with the radio, newspaper, 

television components to it and to try to change attitudes to some 

105

degree, because there is a mindset on the island that construction 

is a dirty business and is supposed to be done by foreigners from 

Asia. And it is just not so, because I’m from the construction industry myself. I’m also a professional engineer, but it is a very good 

industry to be in. 

Mrs. CHRISTENSEN. It pays well. 

Mr. ROBERTSON. A person can earn a lot of money, more so than 

in lot of other cases. 

So, we have to change that attitude. 

Mrs. CHRISTENSEN. Thank you. 

Ms. Bordallo? 

Ms. BORDALLO. Thank you. Thank you very much, Madam Chair 

I will just run through the rest of my questions. Is that all right 

with——

Mrs. CHRISTENSEN. Yes. 

Ms. BORDALLO. All right. 

Mr. Ruder, I have a question for you. The visitor industry must 

be nourished and protected in the years ahead. You suggest expanding the Guam-Only Visa Waiver Program. What specific ways 

can we improve this program, and should the visitors’ stay be expanded from 15 to 30 days? How can we streamline the process to 

add new visitor markets to this program? 

Mr. RUDER. Well, I think certainly recognizing the issues is a 

good place to start the discussion. For example, Guam once enjoyed 

a Guam-Only Visa Waiver for Korea, which was exclusive to Guam, 

that’s now been extended to the continental United States. 

Ms. BORDALLO. That’s correct. 

Mr. RUDER. That’s certainly going to impact the visitor industry. 

So, understanding that, we think that we need to look outside of 

our core markets and try to expand the Guam-Only Visa Program 

to some more of the emerging markets in the Asia-Pacific region. 

Certainly, the first market that comes to mind is China, and I 

know that’s been discussed, and it is a discussion that’s ongoing. 

Ms. BORDALLO. How many days? 

That’s 15 to 30? That’s the timeframe? 

Mr. RUDER. Certainly the—within reason, the longer that we 

could have our visitors on Guam, the more beneficial it would be 

for the community, within reason, recognizing all the other concerns. 

Ms. BORDALLO. My next question, Mr. Ruder, is, it is definitely 

noted that the business environment will become very competitive 

during this buildup, and it will be very important for Guam’s companies, small, medium, and large, to participate in the buildup. 

The Chamber can recognizably fulfill an important role in ensuring 

that Guam’s companies are prepared to successfully compete for 

construction and service contracts, subcontracts, and other related 

work. 

Can you explain what the Chamber may be doing to help Guam’s 

companies prepare to successfully compete in a faster pace, more 

competitive business environment, and is the Chamber helping facilitate partnerships between off-island and Guam-based firms? 

Mr. RUDER. Thank you very much for the question, Congresswoman Bordallo. 

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Certainly the Chamber for many, many years has been engaged 

with the local business community, particularly the small businesses. Our Small Business Committee is an extremely active committee that involves all sectors of the community from the University to GCC, to our very members. So, we hold the number of ongoing seminars. In fact, there’s a seminar this Friday, not dealing 

specifically with the Federal Government procurement issues, more 

in regards to advancing employee development within our own 

small businesses. 

So, that’s one example, but as I stated earlier, the work that is 

done ongoing with the SBA and SPDC are two of our very good 

partners in this endeavor. 

Ms. BORDALLO. Thank you. 

Thank you, Mr. Ruder. 

Mr. RUDER. OK. 

Ms. BORDALLO. Ms. Leberer, to your knowledge, has the Nature 

Conservancy established a working partnership with the Department of Defense at any particular instillation and with such instillation’s host community in support of conservation goals? In other 

words, is there an example out there that we can turn to where 

DOD might have or is currently working in strong partnership 

with TNC? Are there conservation-oriented organizations in a local 

community in the area of environmental management? Are there 

lessons to be learned here or a model to follow in some sense with 

respect to what we are facing here in Guam? 

Ms. LEBERER. Thank you for the question, Congresswoman. 

And, yes, I am not familiar with the specifics, but the Nature 

Conservancy in the mainland has several state programs that work 

with Department of Defense installations. 

I believe Hawaii is an example. And I think that they have also 

worked with the local governments and communities. 

But I think that I would also like to reemphasize what I started 

my testimony with, that the Micronesia program works a little 

differently than the state programs. And so it certainly, I think 

that we could look to some of those as potential models, but they 

may not work entirely as appropriately for Guam, but it is certainly something that we would be open to exploring, but only with 

the expressed invitation of our local partners on Guam, the local 

government, and in consent for consultation with the communities. 

Ms. BORDALLO. Another question I have, given your work in the 

islands and your professional experience, can you comment on how 

DOD is currently controlling for invasive species on Guam and in 

the region? Are there areas for improvement, and can you give us 

some specific ideas for how invasives can be controlled, given the 

buildup plan? 

Ms. LEBERER. I focused on invasive species for the past two 

years, but in my prior life in the Government of Guam, I worked 

with many of the agencies that are trying to control and eradicate, 

in the particularly the brown tree snake in Guam, and I was also 

present when the results of the Brown Tree Snake Commission 

were presented in 2005. And I believe one of the biggest challenges 

in regards specifically to the Department of Defense was a bit of 

challenge with communication and coordination. I think that has 

107

improved since the results were released. I think they definitely 

have a huge role to play. 

The House, the U.S. Department of Agriculture’s Wildlife Services, the APHIS Program, and they are really critical in helping us 

to prevent the spread of the invasive species off or on Guam. I 

think prevention is the key. Prevention is much more cost effective 

than control and eradication. It costs Guam over $10 million—it 

cost Guam and Hawaii, and in other places, over $10 million a 

year to try to control and eradicate the brown tree snake. 

I think there are certain things that Department of Defense can 

also implement, like in the case of marine invasives. They don’t 

have a built management plan in place apparently, and that’s 

something that they also could help our Port Authority to implement. That’s something they could implement. They are considering training exercises in the Freely Associated States, and that 

will increase the risk of marine invasives traveling through village 

water. 

So, I think that prevention is the key. Congress can help with 

infusions of support for a rapid response and prevention and quarantine programs, and all that. 

Ms. BORDALLO. Thank you. Thank you. 

And I have one follow-up to Mrs. Christensen’s line of questioning. Is the work and the report prepared by the Governor’s Civilian-Military Task Force Report as broad and as in-depth to be 

an adequate response during the comment period on the EIS? 

Ms. LEBERER. Again, I think that it was a good response to the 

current level of information that was received, but I think that 

even the Department of Defense themselves, things have been 

changing rapidly and information isn’t always as available to the 

local resource agencies. And, in the words of Department of Defense, I don’t think they always know exactly which projects are 

passed. But I think the earlier that all of the information is available, the better the review would be for all of us. 

Ms. BORDALLO. Thank you. 

And, a couple of last questions for Mr. Robertson. In your mind, 

what would you consider a successful skilled trade training program to look like? Congresswoman Christensen mentioned this, but 

what level of financing would it need, how many students would 

it need to enroll in order better meet the needs of the buildup? 

And in your testimony, we heard that the response just is not 

good, and I think you said that it is because we are so used to foreign workers coming in that——

Mr. ROBERTSON. Right. 

Ms. BORDALLO —we don’t feel that. And I agree with you wholeheartedly. Construction jobs and blue collar workers are making 

far more money than professionals throughout the United States. 

So, can you answer that for me? 

Mr. ROBERTSON. Yes. 

Our cost of operation is actually quite low, because we have a 

low overhead, and so the figure I gave you of $2,500 to $3,000 per 

year, per student, is a good number. 

In addition to that, in some cases, there might need to be a stipend given to the trainee, because maybe he needs to sustain his 

family while he’s studying. 

108

But also at the same time, we are looking at the people getting 

jobs either rapidly, so they’d be drawing a salary from their employer, which would be a percentage of the total, starting out 60 

percent of wage, then working up to a 100 percent when they complete the journeyman status. 

And we, in our Academy, don’t want to grow so fast that we lose 

control of what we are doing. So, we would like to get up to a hundred fairly soon, but we need a facility to do that, and then get to 

200 and then 500, and we are certainly willing to go beyond that. 

But even 500 people coming into the program, we are looking at 

3 or 4 years to actually complete all the study and all of the OJT 

to become an apprentice. So, it doesn’t contribute mightily to the 

numbers needed for construction among the journeymen. 

Ms. BORDALLO. Well, I think it is important that we get the word 

out in the community, and I think that if you run this through 

radio and television, this is all public service ads on their part, 

hopefully. But I think that’s what it needs. It needs to get the word 

out throughout the island. 

Now, my last question, can you generally explain for us any GCA 

held positions on prevailing wage rates for workers, and also on the 

issue of foreign labor? Are there any particular concerns or 

overviews of the Associations that Federal partners, Congress, and 

the local government, should keep in mind as the planning continues? 

Mr. ROBERTSON. A very good question, thank you for that. 

We have been working with the local Department of Labor, and 

we have recently come together and agreed on some rates. We are 

rationally increasing the level of pay to most of the trades. And 

this would be payable to the H2B workers, as well as a minimum 

for the local workers. 

At this point in time, we don’t see a need for your office to get 

too deeply involved in that. We don’t want to raise the rates too 

radically because it would affect not only our industry, but also affect other businesses and industries on Guam, because it would 

draw people from those industries over the construction and disrupt perhaps their activity. We don’t want to do that. 

Could I possibly respond to a question given to Mr. Ruder awhile 

ago? 

Ms. BORDALLO. Surely; surely. 

Mr. ROBERTSON. And that is about dissemination of information. 

And I do know from a very reliable source that the Minister of 

Defense in Japan did have an Industry Forum on the 3rd of August. I don’t know what was discussed, but I was told about it a 

few days before it happened. 

And in addition to that, I know reliably that an architectural 

firm from Japan visited Guam a few weeks ago, and they had a 

contract from the Ministry of Defense to begin doing preliminary 

designs for the Marine Corps. And it is possible they’re just doing 

some preparatory work, and I’ve asked some of the people of JGPO. 

They don’t know anything about it. So, apparently they’re just trying to get a head start on it. 

But I would like to add quickly that there are a lot of rumors 

running around, and people sometimes give out what is really truly 

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rumor as fact, like the Koreans going to be doing all this work with 

the Japanese, and I don’t think there is any substance to it at all. 

Ms. BORDALLO. You know, I’m glad you brought that point up, 

Mr. Robertson, because I think that is the core problem to some of 

this dissension here, is people are just listening to anyone coming 

up, talking this and that without any authority. So, I think if we 

just hold together until official word comes out, that we will be a 

lot better off as a community. 

So, again, I want to thank you all for being here as witnesses. 

Thank you for your testimony. 

I yield back. 

Ms. CRISTOBAL. Madam Chair, may I? 

Mrs. CHRISTENSEN. Senator Cristobal. 

Ms. CRISTOBAL. Yes. 

Thank you, Madam Chair. 

I just wanted to get back to your question earlier, because it kind 

of took me aback, your question with respect to kind of having 

some kind of middle ground between the Chamber of Commerce’s 

survey and what I feel the Chamorro people——

Mrs. CHRISTENSEN. And if I could I just interrupt you for just a 

minute. 

And it is not just a survey. I referenced that, but it is the—I 

think it is a general consensus that most people support the military buildup. So, if we could get away from the survey for a 

minute. 

Ms. CRISTOBAL. OK. Well, that’s fine. 

Madam Chair, just, I recall looking at your website and I remember seeing that you do have the purview of the full political development of our people. And it just occurred to me that it is really 

kind of unfair to ask the Chamorro people to resolve this unresolved issue of political status, and I think that the influx and 

rather the planned military buildup presents a missed opportunity 

if Congress does not take it upon itself, because Congress is the ultimate authority that will determine the civil rights and political 

status of the native inhabitants according to the Treaty of Peace 

of 1899. And it just dawned on me that it is really unfair. I don’t 

think it should be continuously a local initiative. 

We, like our Congresswoman has stated, spent enough money to 

try and attain some kind of standing through a political status, and 

we, I was also part of the negotiations that occurred in the latest 

bout, and that was not successful. So, we have had some failed 

Congressional hearings, we have had some failed local initiatives 

to the local leadership here. I think it is time for Congress to step 

up and do this for——

Mrs. CHRISTENSEN. Well, if you could be more specific——

Ms. CRISTOBAL —for us. 

Mrs. CHRISTENSEN. This is a little off topic, but what is it that 

you would have Congress do, because the people of Guam——

Ms. CRISTOBAL. Here we have——

Mrs. CHRISTENSEN —like the people of the Virgin Islands are 

fully authorized to begin a process and to complete that process of 

self-determination. 

We don’t—I have this argument with Puerto Rico all the time. 

They don’t need to come to Congress to have a referendum to deVerDate 0ct 09 2002 14:21 Jun 02, 2008 Jkt 098700 PO 00000 Frm 00113 Fmt 6633 Sfmt 6602 L:\DOCS\37527.TXT Hresour1 PsN: KATHY
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cide their status. So, what is it specifically that you would want 

Congress to do? 

Ms. CRISTOBAL. Well, in the U.N. Charter, the United States has 

the obligation to promote the economy of the indigenous people and 

to usher in the status options. So, how do we get to that point without the help of the administering power? 

And at the U.N. level, Madam Chair, the U.S. has become increasingly transcendent. They refused to participate. And it has become very difficult for those of us who go up there, like I said, 

where I’m totally unbudgeted. I think this is a government function, Madam Chair. 

Mrs. CHRISTENSEN. Well——

Ms. CRISTOBAL. It is not a local indigenous people’s function. We 

have been, for 300 years, living under military rule. And all the 

three rulers have always stated that they have to maintain us for 

military purposes and control. We need to move away from that. 

Mrs. CHRISTENSEN. Well, as I said, this is related because——

Ms. CRISTOBAL. It is. 

Mrs. CHRISTENSEN —this decision is taking place in an unincorporated territory, although I do not ascribe to the position that the 

territory is being treated differently from a state should this happen, because I think we can find examples that would support my 

position that whether it was state or territory, the Department of 

Defense would be undertaking the process in the same way. 

But I think that when we go back, we are dealing with this with 

Puerto Rico. The Virgin Islands is embarking on an entirely different process right now of just drafting a constitution for us as an 

unincorporated territory. I think status will follow. 

But perhaps we will discuss with our Committee whether we 

ought not to hold some hearings to hear from the territories what—

where they are and what they would like to see happen. So, that 

would be a separate hearing that we would consider doing——

Ms. CRISTOBAL. I think that would be quite well, Madam Chair. 

Mrs. CHRISTENSEN. I hope that you didn’t also want to suggest 

that because you are an incorporated territory, the people of Guam 

were powerless to advocate for change and be successful in making 

change happen. 

Ms. CRISTOBAL. Obviously we haven’t, because we have had all 

our local initiatives that have failed at the Congressional level, 

Madam Chair. And we have a people here with a 4,000-year rich 

history, and we want to continue. Our numbers are continually diminishing and with the influx of people, our votes are being diluted. 

When I attended the meeting with General Lee, I pointedly 

asked him if he would allow U.S. citizens to participate in a vote 

of self-determination for the Chamorro people, and he said ‘‘yes,’’ 

that he would. So, obviously there is plan to dilute our vote. I 

mean, it is absurd to think that U.S. Armed Forces people are 

going to be allowed to decolonize a colony. 

Mrs. CHRISTENSEN. OK. Well—I thank you. 

Ms. CRISTOBAL. Thank you, Madam Chair. 

Mrs. CHRISTENSEN. The Congresswoman would agree with me 

that we will go back and discuss what having—where we go from 

here on that particular issue. 

111

At this point, I want to thank the witnesses for their testimony 

and for their very comprehensive answers to our questions. 

The members again may have some further questions, which we 

will submit in writing, and ask you to respond in writing too. 

And I’d also like to remind everyone that the hearing record will 

be open for ten days for the inclusion of any written testimony, and 

testimony should be e-mailed to insular.guamhearing@mail.

house.gov. 

If there’s—oh, yes. Let me just make a few close—would you like 

to make any further closing comments? 

Thank you. 

Well, in my opening statement, I said that today’s hearing would 

be the start of the Congressional record, and the Congresswoman 

also said that the start of the Congressional record on the potential 

U.S. Military buildup of Guam and the challenges facing this community with the representatives from the Federal and local governments, as well as representatives from the community voicing both 

support and concerns. 

I believe that we’ve gotten off to a good start of incorporating a 

myriad of concerns and opinions. Over the past few days, I’ve received a full briefing from the Joint Guam Program Office, the U.S. 

Marines and the U.S. Navy, as well as the Air Force, on their plans 

as they are now being developed to relocate Marine forces to the 

island from Japan, and for other movement of forces and assets 

that will impact your community. 

In today’s public testimony delivered by General Bice, I heard information that was consistent with what we were briefed. At this 

time I’m satisfied that there’s not a great difference between the 

two. I’m told that your leaders have received similar information 

from meetings with General Bice and other Federal officials. So, 

I’m hoping that we are all starting off today from the same page, 

and I hope that this hearing has helped to bring us all to that 

point. 

I recognize that the feelings of frustration and uncertainty in 

your community are sourced in not knowing what will happen and 

being felt—and feeling that you can’t affect change. For some, it is 

a perceived powerlessness, with respect to the will of the Federal 

Government, but I, for one, never believed that the people are 

powerless, and I have witnessed that power and action and have 

seen it actually make change happen. 

That being said, I believe that there is some side benefits to the 

process, because the debate itself will change Guam, with or without a military buildup, because of the greater awareness of the 

problems of infrastructure, of education, healthcare, environment, 

and the reliability of essential services that exist today, as well as 

some of the insecurities because of the current status that exist in 

some segments of the population. 

At the same time, the Federal Government, and most especially 

our U.S. Military, should not be surprised at what the people of 

Guam are asking for. This is a small island where the people and 

their ancestors have had significant moments that have changed 

their lives—Magellan’s arrival, Spanish colonization, United States 

acquisition, and the brutal enemy occupation. This military buildup 

is one of those significant moments, and we must remember that 

112

the Guam of today is also far different from that of the 16th 

Century or even the 20th Century. This is the benefit of political 

and other experience, and there’s also a greater political maturity. 

So we are here, we are prepared to be your partners to help ensure that you maximize a great opportunity this military buildup 

can present, and to minimize any untoward impacts that such a 

large influx of new people and new military needs could bring. Our 

country is indeed fortunate to have Guam as part of our family. We 

share the Governor’s position that Guam’s people must be viewed 

as relevant, as important stakeholders, and as equal partners, and 

that they must be full participants in this process. 

The island’s location is strategic, and the people of Guam have 

always been described as some of our country’s most patriotic citizens. A military buildup could seem to be a natural fit. Some of the 

finest military leaders are heading up the project. 

It is clear that Guam’s leaders are equally skilled and even more 

so committed that the buildup considers the negative impacts on 

the island community, as well as the potential positive ones, and 

I look forward to the Committee being a part of that process. 

And thank you again for those who were witnesses, thank you 

for all who attended. 

I want to thank the President of the University for, again, making this hall available and for staying with us throughout the entire hearing. 

And if I don’t get a chance to do so publicly again, I want to 

thank the people of Guam on behalf of our entire delegation for 

their warm hospitality. 

Oh, yes, and I want to just remind everyone that the town hall 

meeting will be held this coming Thursday at 6:00 p.m. It will be 

at the Hilton. And the testimony or the questions or any comments 

that are received at the town meeting will also become a part of 

the record of this hearing. 

So, thank you again. If there’s no further business before the 

Subcommittee, the Chairman again thanks the members of the 

Subcommittee and our witnesses, and the Subcommittee stands adjourned. 

[Whereupon, at 1:01 p.m., the Subcommittee was adjourned.]

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