Governor Albert Bryan, along with other U.S. Insular Area governors, appeared before a Senate committee on Thursday. They came to discuss the state of their respective territories before the Senate Committee on Energy and Natural Resources, chaired by West Virginia Democrat Joe Manchin.
Bryan’s testimony came almost two weeks after he delivered the State of the Territory address to the 35th Legislature and the People of the Virgin Islands. The tone of his remarks was cordial but direct.
The Virgin Islands made progress in its continuing recovery from the natural disasters of 2017 in the areas of housing, infrastructure, and tourism, Bryan said. He thanked Congress for raising the federal spending cap for Medicare and Medicaid reimbursements under the 2023 Consolidated Appropriations Act.
But, the governor said, more is needed from Congress to resolve long-standing inequities between the territory and U.S. states. Specifically, he asked for a better accounting of rum excise taxes reimbursed to the V.I.
“It is essential that we get this since this is the revenue we use to stabilize our pension system,” the governor said.
His second most pressing request was for Congressional intervention with the Environmental Protection Agency. The EPA had come down hard on the territory with requirements for the safe operation of the former Limetree Bay Oil Refinery.
About 20 percent of the V.I. workforce depends on the refinery to make a living, he said, and its continued operation is needed to stabilize the economy.
Bryan also raised the possibility of linking with another territory — Puerto Rico — to build a more reliable power system. Committee chair Manchin noted in his opening remarks that stabilizing Puerto Rico’s power system was seen as that territory’s most pressing need.
“We would love to have a Caribbean energy grid,” the V.I. governor said.
During one round of questioning, Manchin asked about the impact of inflation on the territories and where the governors saw it appear.
Gov. Pedro Pierluisi of Puerto Rico pegged inflation at 6 percent; lower than the mainland, he said, but still too high. Samoa’s governor Lemani Magua and Lourdes Guerrero from Guam ballparked inflation at eight to 11 percent, appearing in food prices, shipping costs, and in energy bills.
“We’re in the same situation, we’re much higher. I don’t have the specific numbers, but it’s very high for consumers. Transportation and energy, of course, [are leading factors],” said Gov. Arnold Palacios from the Northern Marianas.
While Bryan cited housing construction, energy, and food prices as the places in the Virgin Islands where inflation most likely appears.
Manchin also asked how the Inflation Reduction Act and the Infrastructure Investment and Jobs Act are affecting investment in energy technologies. Signed into law in August by U.S. President Joe Biden, the act seeks to lower health care costs, improve the environment by reducing carbon emissions, and strengthen compliance by taxpayers with IRS regulations.
The chairman mentioned that the energy committee had long-standing jurisdiction over the territories. The appearance by these governors had become an annual update on the progress and challenges facing each territory. The senator thanked the governors for their consistent participation and for sharing their priorities and their concerns.
