A Report on the
STATE OF THE ISLANDS
Chapter 1: THE DEPARTMENT OF THE INTERIOR'S ROLE IN THE INSULAR AREAS
1.3 Disposition of Federal Lands in the Insular Areas (continued)
Water Island .
In the USVI, the disposition of Water Island has been an important policy initiative. OIA has been working to dispose of federal title to this 500-acre island, the fourth largest island in the USVI. A 40 year-lease, signed in December 1952, has expired. The Bureau of Reclamation completed an Environmental Assessment of Water Island and issued a Finding of No Significant Impact. The National Park Service will conduct a final cultural assessment of the island in July 1996. OIA sent a letter to the sub-lessees on May 23, 1996, explaining that the Department of the Interior was prepared to sell to the Water Island sub-lessees fee title to their respective tracts for the price prorated to $17,500 per acre. Other parts of Water Island will be transferred to the Government of the Virgin Islands in phases.
Rongelap Resettlement
OIA carries out the Department's responsibilities for overseeing the health and welfare of the people of Rongelap Atoll in the Republic of the Marshall Islands as well as the management of the Rongelap Atoll Resettlement Trust Fund established by the Congress. The Rongelapese left their islands in 1985, expressing concern that the atoll was still unsafe because of the radiological exposure it had received during the U.S. nuclear weapons testing program in the early 1950s. In 1986, the Compact of Free Association Act of 1985 (P.L. 99-239) in section 103(i) provided for the resettlement of Rongelap. From FY 1992 through FY 1995, the Congress appropriated, for the corpus of the trust fund, $11.7 million ($6.7 million through OIA and $5 million through Department of Defense). During that period, the Congress also appropriated $1.6 million for further radiological studies and related scientific and health monitoring activities. In FY 1995 Congress also appropriated $1.2 million for the preparation of the Rongelap resettlement Plan, financial management reform, Rongelap local government institution building and resettlement programs. In FY 1996, the Congress appropriated $6.403 million for Rongelap.
As a result of radiological studies in 1992 and 1993, and continuing annual monitoring, human habitation may resume but resettlement organization and planning have not moved forward due to problems and unresolved issues among the Rongelapese. In the years 1994, 1995, and 1996, OIA, working with representatives of the Rongelap Atoll Government and the Republic of the Marshall Islands Government, has laid the groundwork for the atoll's resettlement. A comprehensive resettlement plan is under development, emergency needs of the Rongelap community (more than 20% reside on Mejatto in the Kwajalein Atoll) have been addressed, and the capabilities of the Rongelap Atoll Government were improved, including the establishment of an annual budget process for the local government. That budget is funded from the interest income of the Rongelap Resettlement Trust Fund.
In June 1996, OIA presented a proposal to Rongelap representatives to resolve the allocation of resettlement funding. OIA is currently awaiting a response to the proposal.
Additional Insular Agreements/Initiatives
CNMI Utility Agreement Signed: On March 20, 1995, OIA signed an agreement with Governor Froilan Tenorio of the Commonwealth of the Northern Mariana Islands (CNMI) aimed at improving the management and strengthening the autonomy of the CNMI's water and power utility. The ultimate aim of the agreement is to assist the Commonwealth Utility Corporation (CUC) in achieveing full cost recovery. Among the major steps to be taken under the agreement are a feasibility study on selling some or all of the utility's operations and assests to the private sector, implementation of audit recommendations, restructuring of the utility's debt, and preventing future political interference in the rate setting and debt collection operations. The agreement, which also contains provisions for monitoring and enforcement, allows the CNMI to use Covenant funding from fiscal years 1993, 1994, and 1995. Those funds had been held by OIA pending resolution of CUC issues. OIA-administered Operations and Maintenance Improvement Program funding can also be released for CUC use, provided satisfactory progress continues to be made on the goals of the agreement.
CNMI Environmental Working Group: OIA formed a federal interagency partnership with the CNMI government to address environmental issues impacting the CNMI. Over the last year, the group has worked to resolve conflicts between economic development and the conservation of wetlands, to facilitate the regulation of coastal resources, and to protect endangered species. In addition to OIA officials, the group includes federal representatives from the U.S. Fish & Wildlife Service, U.S. Environmental Protection Agency, U.S. Army Corps of Engineers, National Marine Fisheries Service, and the National Oceanic and Atmospheric Administration/Coastal Resource Management Program. The CNMI participants are from the Governor's office, Attorney General, Historic Preservation, and Departments of Public Works, and Land and Natural Resources.
As a result of this group's efforts, understandings were reached regarding the roles of the CNMI's Coastal Resource Management Office and Department of Land and Natural Resources, and the U.S. Fish and Wildlife Service in gaining compliance with the Federal Endangered Species Act. An agreement was also reached between the CNMI Department of Public Works and the U.S. Environmental Protection Agency. In addition, an ombudsman position has been established in the CNMI government to facilitate communication with developers on the development permit process. Federal agencies have provided training to enhance the Ombudsman’s capability. The U.S. Army Corps of Engineers is publishing a brochure for the public explaining the federal environmental laws and regulations and development permit process. The CNMI is working with the federal agencies to create a wetlands bank and in making a determination of high and low value CNMI wetlands.
Statistical Improvement Initiative: OIA has undertaken a program through technical assistance to bring the statistical capability of the U.S. insular areas as close as possible to the capabilities of the states. This will make it possible to make meaningful comparisons in the insular areas and with the states. Assistance is provided through a reimbursable agreement with the Census Bureau for the services of Dr. Michael Levin and other Census Bureau personnel, and through grants to the insular areas for training and data collection. During FY 1995 and 1996, OIA assisted each insular area with a census or survey designed to establish mid-decade benchmarks for comparisons with the decennial census. These censuses and surveys have been completed and partially tabulated, providing data for this report. A more complete summary of their results will be prepared later in 1996.
The CNMI is the only U.S. insular area to undertake a full census for 1995. The census, financed from local funds, is necessary to measure the rapidly changing demographic characteristics of the CNMI. Guam conducted a consumer expenditure survey with the objective of revising the market basket for determining the consumer price index. Guam also conducted a census of Palauans on Guam to assist in measuring the impact of the Compact of Free Association. The Virgin Islands conducted a population and housing survey. American Samoa conducted a survey of population, housing and expenditures. Each of these surveys benefitted from an OIA technical assistance grant. All insular areas also participated in a State of the Islands workshop in Washington in May 1996 to coordinate processing of censuses and surveys and to facilitate comparison of data among insular areas.
Coral Reef Initiative: OIA worked in partnership with the insular areas on an Administration initiative to sustainably manage coral reefs and related ecosystems. The initiative was announced at the UN Small Islands Developing States conference in May 1994 in response to Agenda 21 of the Earth Summit. OIA provided funding for and participated in workshops in the Pacific and Caribbean for the purpose of identifying the major problems affecting coral reef ecosystems in the islands and developing plans of action to address those concerns. OIA also funded Guam's participation as a member of the U.S. Delegation to the International Coral Reef Initiative Workshop held in the Philippines in May-June l995, and helped fund a videotape on the status of coral reefs worldwide called "The Fragile Ring of Life", which featured the Republic of Palau, among other countries.
Numerous regional workshops have been held since the International Conference to develop regional plans to implement the Call to Action and Framework for Action adopted at the Philippines workshop. In addition, a proposed Coral Reef Research Center is being discussed among the governments of the United States, Japan, and Palau.
Palau Road Project: OIA presented to Palau the U.S. Government analysis of the cost of constructing the Palau Compact Road as described in the Compact of Free Association. The Republic of Palau had sought the construction of a higher quality, wider roadway on Babeldaob island. The United States Government agreed to provide a higher quality road provided it cost no more than the original design. The cost analysis, provided by the U.S. Army Corps of Engineers, estimated the total cost of the original road at $149 million, including all design, construction, and environmental mitigation costs and the removal of World War II ordnance. This change to the Palau Compact was endorsed in Public Law 104-134. The Palau road will now be constructed with a wider roadway and improved surfaces. The trade-off to Palau is that the road will be shorter than the 53 miles first envisioned.
Project execution began in November 1995. A centerline survey was completed in January 1996. A topographical survey was awarded in April 1996. Design A&E contracts were selected in March 1996. The Corps of Engineers will prepare an Environmental Impact Statement under substantively similar standards as required by the National Environmental Policy Act. Project scoping meetings were held in Palau in April 1996. Republic of Palau officials are serving on selection panels for contracts to help assure that local interests are represented as the project progresses.
Bilateral Working Group on Palau Environmental Affairs: Palau's greatest treasure is its marine environment. Sustainable conservation and sustainable development of this extraordinary resource as envisioned in Palau's National Development Plan are a vital component of preserving Palau's cultural heritage and are critical to ensuring Palau's future economic prosperity. Through an exchange of letters dated July 15, 1994, Secretary Babbitt and President Nakamura agreed to establish the Bilateral Working Group on Palau Environmental Affairs to coordinate the development of policies to protect and to preserve that environment. The Working Group is co-chaired by the U.S. Government and the Government of Palau. The delegations of the U.S. Government and the Government of Palau include, as appropriate, representatives of various departments, agencies and offices. The first meeting of the Working Group took place in Koror, Palau, on April 11, 1995. A further meeting is scheduled for July 1996 in Palau.
Impact of the Compact: The Compact of Free Association Act of 1988 (P.L. 99-239), which establishes the relationship between the United States and the Federated States of Micronesia and the Republic of the Marshall Islands, authorized immigration of FSM and RMI citizens into the United States, its territories and possessions. This enabled citizens of these island states to enter Guam and the CNMI and the States to lawfully engage in occupations as nonimmigrant aliens. Guam's habitual resident population of these aliens is estimated to have increased by about 7,000 persons since 1986.
The Government of Guam estimates that it has expended at least $70 million in services to Compact citizens since the Compact was implemented. In FY 1995, $2.5 million was appropriated as a contribution toward the costs Guam has incurred in providing social services to these Micronesian immigrants. In FY 1996, Congress reallocated $4.6 million from CNMI Covenant funding to Guam as an additional contribution toward Compact impact costs. This funding will be part of OIA's annual budget to the year 2001, for a total of $27.5 million. Thus, Congress has committed a total of $30 million in Compact impact assistance to Guam, in addition to $2.6 million provided from OIA's technical assistance program. OIA has also provided technical assistance in the amount of $834,000 to the CNMI for measurement and mitigation of Compact impact.
The Government of Guam filed a court action in 1996 seeking preparation of the federal report on the impact of the Compact required under section 104(e)(2) of the Public Law 99-239 and section 102(a) of Public Law 99-658. OIA has indicated that it plans to complete and submit such a report to Congress by the end of August 1996.
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