Statement of Administration Policy: H.R. 1688 - Omnibus Insular Areas Act of 1991

(House)
(de Lugo (D) Virgin Islands and 17 others)

The Administration has no objection to House passage of H.R. 1688 if it is amended, as expected, to address the following two issues:

—   Puerto Rico, the Federated States of Micronesia, and the Marshall Islands should be removed from the bill's definition of "insular area." Puerto Rico, with its large land mass and population, could require the use of most of the Interior Department's technical assistance funds to the detriment of other insular areas. These benefits for Puerto Rico were not included in S. 2362, the predecessor bill to H.R. 1688, which passed both Houses of Congress during the last Congress. In addition, the disaster needs of Micronesia and the Marshall Islands already have been mutually negotiated and included in the Compact of Free Association.

—   The bill as reported includes increased Federal hazard mitigation assistance for the insular areas without an explicit 50 percent local match requirement, and expands the base on which the cap on hazard mitigation grants is calculated. (Under current law, the insular areas have a local cost share waiver for Federal hazard mitigation assistance.) Increasing funding for the insular areas could be very costly, as well as unfair to the 50 States.

In addition, the responsibility for disaster assistance in the insular areas should be placed on the Federal Emergency Management Administration (FEMA). Title I would authorize Interior to administer disaster funding and provide oversight (both currently FEMA duties), creating overlaps in responsibility and confusion.

The Administration also has concerns with several other provisions of H.R. 1688. The requirement that the Secretary of Interior (the Secretary) report to Congress on the status of disaster recovery efforts would duplicate current FEMA responsibilities. Similarly, the Secretary already has the discretionary authority to study the long-term water, sewer, and power needs of the insular areas.