[House Report 106-404] [From the U.S. Government Publishing Office] 106th Congress Report HOUSE OF REPRESENTATIVES 1st Session 106-404 ====================================================================== RONGELAP RESETTLEMENT ACT OF 1999 _______ October 20, 1999.--Committed to the Committee of the Whole House on the State of the Union and ordered to be printed _______ Mr. Young of Alaska, from the Committee on Resources, submitted the following R E P O R T [To accompany H.R. 2970] [Including cost estimate of the Congressional Budget Office] The Committee on Resources, to whom was referred the bill (H.R. 2970) to prescribe certain terms for the resettlement of the people of Rongelap Atoll due to conditions created at Tongelap during United States administration of the Trust Territory of the Pacific Islands, and for other purposes, having considered the same, report favorably thereon without amendment and recommend that the bill do pass. PURPOSE OF THE BILL The purpose of H.R. 2970, the Rongelap Resettlement Act of 1999, is to prescribe certain terms for the resettlement of the people of Rongelap Atoll due to conditions created at Rongelap during United States administration of the Trust Territory of the Pacific Islands, and for other purposes. BACKGROUND AND NEED FOR LEGISLATION Rongelap Atoll is one of four atolls in the Marshall Islands which were contaminated by high level radiation due to nuclear testing during the time the islands were administered as a trust territory by the United States. The total estimated cost for radiological rehabilitation of Rongelap Island and resettlement of the Rongelap community at Rongelap was estimated in 1995 at approximately $90 million. This estimate was presented to the Committee on Resources by qualified engineers who developed the resettlement plan for Rongelap under a contract supervised by the Department of the Interior, and on the basis of independent scientific recommendations for remediation of radiological conditions at Rongelap confirmed by the Department of Energy and the National Academy of Science. The process through which the Rongelap Resettlement Program has been developed, approved and implemented under the oversight of the Committee on Resources was first authorized in 1986 under Section 103(i) of Public Law 99-239, implementing the Compact of Free Association with the Marshall Islands. Congress expressed its clear intent in that provision that additional actions might be necessary to insure that the atoll was suitable for habitation: It is the intent of Congress that such steps (if any) as are necessary to restore the habitability of Rongelap Island and return the Rongelap people to their homeland will be taken by the United States in consultation with the Government of the Marshall Islands and . . . the Rongelap local government council. Rongelap's resettlement and radiological rehabilitation has been funded through a trust fund mechanism established by Congress in 1991 under Public Law 102-154 (105 Stat. 1009). However, in 1996, in lieu of appropriation of the full amount of $90 million, under section 118(d) of Public Law 104-134, Congress adopted a policy of funding Rongelap resettlement at a lower cost to taxpayers by contributing to the trust fund lesser amounts and encouraging methodical and cost-effective resettlement. A total of approximately $40 million has been appropriated to date, with the understanding that the Rongelap Atoll local government would be responsible for prudential management of the assets of the trust fund to implement the resettlement plan. The lower trust fund level requires that the pace of the resettlement program must be controlled and that the local government must establish priorities for each element of a phased program of resettlement projects, so that the depletion of the trust fund assets will be at least partially offset by income from investment of the trust fund. The objective is to enable the people of Rongelap, acting through their local constitutional process, to manage their own affairs and the resettlement process itselfto the greatest extent possible. For this to occur, it is necessary to ensure that the local government has the institutional capabilities and the resources to administer and manage the resettlement program. Consistent with this policy, under Section 118(d) of Public Law 104-134, Congress accepted the resettlement plan developed by the Rongelap Atoll local government and provided for contributions to the trust fund by federal agencies, including the Department of Defense and the Department of the Interior, which brought the U.S. contribution up the $40 million level. In both Public Law 102-154 and Public Law 104-134 Congress required that the use of trust fund assets be in accordance with agreements between the Rongelap Atoll Local Government Council (RALGOV), the Republic of the Marshall Islands (RMI) and the Department of the Interior, and that all distributions and use of such funds be subject to disapproval of the Secretary of the Interior. Congress expressly required the President to establish an agreement to govern the resettlement process as intended by Public Law 104-134. In fulfillment of that requirement, on September 19, 1996, the Secretary of the Department of the Interior acting on behalf of the President, entered into an ``Agreement Regarding United States Assistance in the Resettlement of Rongelap Concluded Between the United States Department of the Interior and Rongelap Atoll Local Government'' (see Appendix A). The agreement, as amended, is comprehensive, including provisions for resettlement, radiological rehabilitation of the islands, reconstruction, as well as community recovery and reunification programs. The entire principle of the trust fund and at least 50 percent of the annual income (interest and earnings) are dedicated to the island rehabilitation, reconstruction and resettlement support programs at Rongelap Island. An amount not to exceed 50 percent of the annual income is made available to the Rongelap Atoll local government to manage and administer the resettlement program through the local government structure. This enables the local government to carry out community recovery programs and address the needs of the Rongelap people through local government services, and support efforts which are currently dispersed over an oceanic area almost as large as the state of Arizona, including at Majuro, Ebeye and the desolate island of Mejatto in Kwajalein Atoll. While the entire agreement has no expiration date, the provision for the annual budget process with the local government terminates at the end of five years unless otherwise provided by Congress. Aware of the potential disruption that would occur if the agreement was changed or the budget provision was allowed to lapse, the Rongelap Atoll Local Government Council approved Resolution Number 99-10 on July 9, 1999, expressing support for continuation of the 1996 Rongelap Resettlement Agreement in federal law. This resolution was transmitted to the Committee on Resources by the RMI national government on July 12, 1999 (see Appendix B). It is the expiring provisions of the 1996 agreement which have enabled the Rongelap Atoll local government to manage the resettlement program successfully. Congressional policy for the resettlement, as prescribed in Public Law 104-134 and involving the Atoll's local government, has proven very successful. Community recovery as well as island rehabilitation and reconstruction projects have exceeded all expectations and predictions for success since Congress initiated the Rongelap recovery project under the trust fund agreement dated May 13, 1992, as amended, concluded pursuant to Public Law 102-154 (see Appendix C). If the current arrangement was permitted to terminate next year, a resettlement administering authority that would essentially duplicate the local government would have to be established and funded to organize and mobilize the community for resettlement, a process that will take at least ten years to complete. Thus, in addition to ratifying the approach taken by the Interior Department in implementing the 1996 resettlement agreement to date, this legislation ensures Rongelap local government funding provisions are extended for the next ten years. The Committee has received information regarding the implementation of the resettlement program from the Department of the Interior, the RMI national government, and the Rongelap Atoll local government, both through the process of routine oversight and during the Committee's oversight visit to the Marshall Islands on February 20 and 21, 1999, as well as the briefing and hearing on the effects of the nuclear testing which the Committee conducted on May 10 and 11, 1999. As a result, the Committee concludes that the Rongelap resettlement process to be proceeding in a satisfactory and successful manner. The Department of the Interior has been charged to carry out the policy of Congress embodied in Public Laws 99-239, 102- 154 and 104-134, to provide for resettlement and radiological rehabilitation of Rongelap, including specific resettlement construction projects. Congress also intended to promote the development at the local government level of the institutional capacity to manage the resettlement program under the local constitution and laws. The devolution of authority from the Office of Insular Affairs, Department of the Interior in Washington, D.C., to the Rongelap Atoll local government and the RMI national government, represents an historic model for success in promoting recovery from the nuclear testing program for an island community in the RMI. In addition to the infrastructure construction projects at Rongelap itself which are making radiological remediation possible, the political and cultural infrastructure of the Rongelap people also is being rebuilt through this process. This has required that the Department of the Interior, the RMI and the local government agree on terms for administration of the trust fund under Public Law 102-154 and implementation of the resettlement program agreement under Public Law 104-134 that are consistent with but not expressly set forth in those public laws. This includes the previously referenced agreements under which up to 50 percent of the income from the trust fund has been distributed to the Rongelap Atoll local government so that it has the resources and the administrative capability to operate out of the City Hall and Resettlement Program Headquarters in Majuro to provide local government services and support resettlement in an effective manner. Originally there was a $500,000 annual cap on the amount available to the local government, but this was when the trust fund assets were less than $7 million. In more recent years as the corpus has grown, the Department of the Interior has agreed to increased allocations for local government administration of the program within the overall 50 percent cap. Without this arrangement, including the ability to meet administrative costs of local government operations necessary to support resettlement, the Rongelap community could never have taken responsibility for the resettlement program and made it their own. It would have been something done by the United States for them, and there would have been frustration and mistrust in all probability. Instead, the allocation of resources to operate the resettlement program through the local government made the difference between the present successful program and what might well have been another less than satisfactory result. It is significant that the organic instruments authorizing the entire resettlement program now taking place include RALGOV Resolution 95-20, approving the overall resettlement plan (Appendix D). In addition, the policy of implementing resettlement through the local government has promoted economy and efficiency by eliminating the need to establish a separate agency or authority to manage resettlement. In addition, the Department of the Interior has been able to work closely with the local government to improve bookkeeping, financial management controls and open transparent budget processes that have strengthened local self-government and will continue to do so in the future. This is an important goal behind Public Law 102-154 and Public Law 104-134. The lesson of the Rongelap resettlement program is that enabling the local community to take responsibility and manage its own affairs within the framework of policy defined by Congress can be the best way to accomplish U.S. policy goals. Similarly, the history of U.S. programs in the islands of the former trust territory is that micro-management by federal officials entangles the U.S. in internal matters and prevents the island peoples from being enabled to manage their own affairs. This too often has led to disavowal of the results by both the U.S. and the islanders when there are problems, as well as liability for the U.S. in some cases. Thus, the most important U.S. role is to ensure federal funds are subject to adequate internal controls and sound financial management, which the Department of the Interior has done by helping the Rongelap local government transform a dysfunctional internal budget process into a fiscal operation which meets government accounting standards. In addition, the Secretary of the Interior has final authority to disapprove the use of trust fund assets, but experience shows that power should only be used to ensure funds are spent responsibly and for purposes that advance resettlement. In the case of Rongelap, giving the local government some authority and discretion has resulted in a more aggressive resettlement schedule than the United States could have anticipated, and the actual construction projects are ahead of schedule. In addition, the local government is using trust fund assets for matching fund projects with the Department of Energy and the RMI government to accelerate resettlement. Through enactment of H.R. 2970, the Committee supports long-term continuity of the current policy and practice for carrying out the resettlement program through the local government. The Secretary is specifically charged with the responsibility to disapprove expenditures that are formally determined not to effectively advance resettlement. However, the local government's management and annual planning for the resettlement process is not subject to disapproval that is merely subjective, as that would cause the disruption of a successful program. COMMITTEE ACTION H.R. 2970 was introduced on September 29, 1999, by Congressman Don Young (R-AK) and cosponsored by Congressman George Miller (D-CA). The bill was referred to the Committee on Resources. The Committee previously conducted an oversight visit to the Marshall Islands on February 20 and 21, 1999, and met leaders and members of the Rongelap Community in Majuro and Kwajalein concerning the resettlement and radiological rehabilitation process. The Committee also held a hearing in Washington, D.C., on May 11, 1999, and considered the report by the representatives of the Rongelap Atoll local government regarding the progress and success of the Rongelap Resettlement program. The Administration testified as to the success of Rongelap's resettlement based on the September 16, 1996, Rongelap Resettlement Agreement between the Secretary of the Interior and the Marshall Islands and the Rongelap Atoll local government. On October 6, 1999, the Full Resources Committee met to consider the bill. No amendments were offered and the bill was then ordered favorably reported to the House of Representatives by voice vote. COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of rule XIII of the Rules of the House of Representatives, the Committee on Resources' oversight findings and recommendations are reflected in the body of this report. CONSTITUTIONAL AUTHORITY STATEMENT Article IV, section 3 of the Constitution of the United States grants Congress the authority to enact this bill. COMPLIANCE WITH HOUSE RULE XIII 1. Cost of Legislation.--Clause 3(d)(2) of rule XIII of the Rules of the House of Representatives requires an estimate and a comparison by the Committee of the costs which would be incurred in carrying out this bill. However, clause 3(d)(3)(B) of that Rule provides that this requirement does not apply when the Committee has included in its report a timely submitted cost estimate of the bill prepared by the Director of the Congressional Budget Office under section 402 of the Congressional Budget Act of 1974. 2. Congressional Budget Act.--As required by clause 3(c)(2) of rule XIII of the Rules of the House of Representatives and section 308(a) of the Congressional Budget Act of 1974, this bill does not contain any new budget authority, spending authority, credit authority, or an increase or decrease in revenues or tax expenditures. 3. Government Reform Oversight Findings.--Under clause 3(c)(4) of rule XIII of the Rules of the House of Representatives, the Committee has received no report of oversight findings and recommendations from the Committee on Government Reform on this bill. 4. Congressional Budget Office Cost Estimate.--Under clause 3(c)(3) of rule XIII of the Rules of the House of Representatives and section 403 of the Congressional Budget Act of 1974, the Committee has received the following cost estimate for this bill from the Director of the Congressional Budget Office: U.S. Congress, Congressional Budget Office, Washington, DC, October 15, 1999. Hon. Don Young, Chairman, Committee on Resources, House of Representatives, Washington, DC. Dear Mr. Chairman: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 2970, the Rongelap Resettlement Act of 1999. If you wish further details on this estimate, we will be pleased to provide them. The CBO staff contact is John R. Righter. Sincerely, Barry B. Anderson (For Dan L. Crippen, Director). Enclosure. H.R. 2970--Rongelap Resettlement Act of 1999 H.R. 2970 would extend by 10 years certain provisions of a 1996 agreement between the Department of the Interior and the local government of the Rongelap Atoll. The agreement provides and oversees the use of federal assistance in resettling the people of Rongelap, who were displaced from their island as a result of the U.S. government's testing of nuclear weapons in the Marshall Islands during the 1950s. (The Rongelap Atoll is part of the Marshall Islands, a country that entered into a compact of free association with the United States in 1986.) The bill would allow the local government to continue using a portion of the earnings from the Rongelap Resettlement Trust Fund to provide food and shelter to the Rongelap people during their period of dislocation and to cover certain administration expenses. Although the federal government has imposed restrictions on how the monies appropriated into the trust fund (which has already been counted as outlays) can be used, the funds belong to the people of Rongelap and thus are nonfederal. Consequently, enacting the bill would have no impact on the federal budget. Because the bill would not affect direct spending or receipts, pay-as-you-go procedures would not apply. H.R. 2970 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would impose no costs on state, local, or tribal governments. Enactment of this legislation would benefit the local government of the Rongelap Atoll. The CBO staff contact is John R. Righter. This estimate was approved by Peter H. Fontaine, Deputy Assistant Director for Budget Analysis. COMPLIANCE WITH PUBLIC LAW 104-4 This bill contains no unfunded mandates. PREEMPTION OF STATE, LOCAL OR TRIBAL LAW This bill is not intended to preempt any State, local or tribal law. CHANGES IN EXISTING LAW If enacted, this bill would make no changes in existing law. APPENDICES A. Rongelap Resettlement Agreement, as amended. B. RMI transmittal of RALGOV Resolution 99-10. C. 1992 Resettlement Trust Fund Agreement, as amended. D. RALGOV Resolution 95-20, Approving the Resettlement Plan.![]()