Key federal officials meet to discuss CNMI energy woes

[B]WASHINGTON D.C[/B].—With CNMI energy problems worsening daily and no existing comprehensive plan, CNMI Resident Representative Pete A. Tenorio has appealed to key federal officials to aid the CNMI in developing and implementing an effective energy plan for the CNMI.

“Energy is by far our biggest problem, and without a comprehensive plan to fix these problems, the people of the CNMI are going to continue suffering through daily outages or be forced to live without electricity altogether. This is completely unacceptable; we need real plans and federally backed financing to fix this problem. But this cannot happen overnight. I have brought together key congressional and administrative officials to begin working on this,” said Tenorio.

Present at a meeting to begin work on this issue were Interior deputy assistant secretary Doug Domenech, Office of Insular Affairs director Nik Pula, Subcommittee on Insular Affairs staff director Tony Babauta, Subcommittee on Insular majority counsel Affairs Brian Modeste, Subcommittee on Insular Affairs minority staff director Rich Stanton and Senate Energy Committee staff member Alan Stayman. Also present for the CNMI was Rep. Ralph Torres, chairman of the Health, Education, and Welfare Committee for the CNMI House of Representatives.

“It is highly unusual to get this group together in one room to discuss an issue faced by a territory, but they understand the magnitude of the problem and realize that this cannot be addressed by the CNMI alone,” said Tenorio.

Others consulting with this group are John McCarroll, manager, Pacific Islands Office of the Environmental Protection Agency, and Steve Feldgus, professional staff for the Energy Subcommittee and the Army Corps of Engineers.

[B]The scope of the problem[/B]

“The CNMI lacks an infrastructure plan, and we most assuredly lack a reasonable plan that will address our electrical generation problems. We have wasted millions of dollars in scarce federal CIP money on contracts to repair generators that are too old and beyond repairs. We need a realistic short term plan that will provide electricity to the community. Years ago when the power plant burned down, the military loaned us a power barge until we could build a new power plant. I have requested the Department of Interior to help us identify U.S. resources that can help us through the next few years,” Tenorio said.

[B]Planning is a necessity[/B]

“I am dismayed that the CNMI lacks an infrastructure development plan. I do not know how projects are chosen or prioritized in the annual allocation of CIP money. I am glad that Representative Torres was present in the meeting; I hope that when he returns to the CNMI he can urge the Legislature to be more aggressive in their oversight of CIP money and pass legislation establishing a planning process for CIP. The community must be involved in the process of determining priorities and direction,” Tenorio said.

Good decisions are made for infrastructure development when they are based on a good plan. “We need unbiased and objective experts and engineers to come to the CNMI and evaluate our power plants, the electrical grid and provide realistic advice on how to solve these problems. I stress unbiased and objective, because we don’t need anymore salesmen trying to convince us their product is the answer to all of our problems. I think that, in part, is how we ended up in this mess today,” stated Tenorio.

“Since the Legislature has now approved the Aggreko deal to lease generators, I hope this is a resolution to the immediate crises. However, we are still dependent upon aging generators for the majority of our power generation,” said Tenorio.

An intermediate plan will detail how the CNMI can transition to reliable, stable power in a few years. The emphasis on the intermediate plan must be on efficiency and stability. There must also be a long range plan that will establish a benchmark for reducing the CNMI’s reliance on fossil fuels.

Hawaii possesses long range energy planning. Governor Lingle has established a goal of renewable energy providing 70 percent of Hawaii’s electricity by 2030. “A lot of renewable energy is still being researched, and with the most common types, wind and solar, you must have a reliable base, such as a diesel generator that can run 24/7 in case the wind stops blowing or the sun is not shining,” said Tenorio.

[B]Funding[/B]

The most crucial aspect of any plan is the funding. “Once we have a plan in place, it will be easier to identify federal funding. Currently we are guaranteed…$10 million a year. I believe that we can easily get permission to float a bond with this federal resource. This should also raise our credit rating so that we can get a better deal on the bond,” explained Tenorio.

“I am also gaining support for the return of the $27.72 million annual appropriation of Covenant funds to the CNMI,” he said.

In the mid 1990s, the growing concern over the CNMI’s handling of labor and immigration led to the parceling of Covenant funding among four U.S. territories: Guam, the U.S. Virgin Islands, American Samoa and the CNMI. The 702 Agreement signed by former Lt. Gov, Diego Benavente and then-Interior deputy assistant secretary David Cohen established the current CIP grants program for determining the amount allocated for each territory.

“My plan is to have the authorization for CIP funds increased by at least double to $56 million. The other insular areas have had difficulty in getting Congress to pass legislation that provides them with a permanent authorization for capital improvement funding. As the other insular areas have grown accustomed to a share in the CNMI’s authorization, it would be impossible to gain their support in returning the $27.7 million to the CNMI without providing funding for them as well. Together we can get the overall authorization increased and in doing so provide stable infrastructure funding for all of us,” explained Tenorio.

[B]Transparency and accountability[/B]

“The CNMI government currently lacks an acceptable level of credibility because it is not transparent or fully accountable. The many questions raised by the community regarding CUC’s sole-source contracts have reached Washington. It has been made clear to me that federal funds are always to be spent in a manner that will maximize their benefit to the people. Even in an ‘emergency’ there must be attempts to promote competition and reduce impropriety,” explained Tenorio.

“More important than the CNMI’s responsibility to the federal government when spending federal money is its responsibility to the people of the CNMI to provide for their health, safety and welfare. I will continue my efforts with Congress for increased funding. When I return to the CNMI next week I will be meeting with the Legislature and Administration to see how we as a community can work together to resolve these energy crises,” said Tenorio.