Aloha, Friends.
My staff and I continue to appreciate our partnership with you and your Neighborhood Board colleagues on behalf of the communities we are both privileged to represent. This is once again to update you on my activities and to request your continued guidance.
By the second quarter of every year in Congress, my House Appropriations Committee is well underway in our preparation of the federal budget for the next fiscal year which starts on October 1st. Our work in determining the overall amount of the budget and the allocation of federal spending to federal government agencies, departments and organizations usually begins in earnest on receipt of the President’s proposed budget (for as the old saying goes, the President proposes but Congress disposes).
We just received President Biden’s $5.8 trillion Fiscal Year (FY) 2023 budget proposal, which the White House says “reflects three important values: fiscal responsibility, safety and security at home and abroad, and a commitment to building a better America.” A fact sheet of this proposal can be found here.
More Funding for Red Hill
In February of this year, I joined Congressman Kahele in introducing a bill in the U.S. House to close Red Hill. A few weeks later, Secretary of Defense Lloyd Austin issued an order to that effect. Our efforts must now be to remediate any remaining damage, determine and fix the cause of the leaks to date, locate alternative fuel storage capacity, and defuel and close the facility. This will take time and billions of dollars to achieve fully, and my focus will remain on moving through these steps safely and expeditiously and on obtaining the necessary funding through my Appropriations Committee over the number of years necessary.
In a positive development, the President’s FY 2023 budget proposal includes $1 billion to the Department of Defense to remediate, defuel and close the Red Hill Bulk Fuel Storage Facility and secure alternative fuel storage capacity in the Indo-Pacific. This funding proposal comes just weeks after my Appropriations Committee provided some $736 million in funding for current FY 2022 to support displaced servicemembers, civilians and their families, address drinking water contamination, and conduct activities in compliance with the State of Hawai‘i’s emergency order. Those funds were in addition to the $403 million in emergency funding obtained in another bill in February 2022, bringing Congress’ total funding for all aspects of Red Hill in the current fiscal year alone to over $1.1 billion.
Especially as a member of our Appropriations Committee’s Subcommittee on Military Construction and Veterans Affairs, I will carefully review this most recent FY 2023 request and make any adjustments needed to ensure our federal government fulfills its promises to our state.
A Successful Year for Community Funding Projects
In our just-completed FY 2022 federal appropriations law, Congress included for the first time in over a decade limited Community Project Funding (CPF) by individual Members for specific projects and purposes. I was very happy that all ten of my own CPF requests were approved and included. They are:
- Blood Bank of Hawai‘i new HQ in Kapolei $2 million
- HIEMA First Responder campus $2 million
- Kōkua Kalihi Valley health and education ctr. $1.050 million
- University of Hawai‘i rural health initiatives $1 million
- State of HI Workforce Development Council $975 thousand
- Honolulu Harbor Modernization Study $800 thousand
- INPEACE Leeward business incubator $500 thousand
- Ānuenue Fisheries Research Center on coral $415 thousand
- City & Cty. of Honolulu Tree mgmt. plan $300 thousand
- HI Institute of Marine Biology seawall project $200 thousand
In preparing my own CPF requests, I considered input from our communities including our Boards, consulted with Hawai’i state and county governments and non-profits, applied my own knowledge and beliefs as to district needs, considered whether a project could obtain federal funding through other means, and made some difficult decisions given my limited number of CPF requests. This year, I will be submitting a new round of CPF submissions and look forward to your continued direction on specific neighborhood needs that might be addressed through CPF.
The War In Ukraine And What It Means For Hawai‘i
When Russia invaded Ukraine, it attacked not only the government, people and lands of Ukraine, but democracy everywhere and the foundations of our government and way of life and of those around the world who share our path. As such, whether Russia’s invasion stands will determine not only the fate of Ukraine and its incredibly brave peoples, but the direction of our world for generations. For if it does stand, we will certainly see more Ukraines by Russia and its autocratic friends.
The ripple effect from the war in Ukraine is hitting our Hawai‘i very hard. You can see the impact every time we pay at the gas pump, and if it continues, what we will see when we receive our utility bills.
As one specific response, on March 8th I urged President Biden to exercise existing authority to grant a waiver from the federal Jones Act to permit international shipping to ship oil and other petroleum products from mainland U.S. ports to Hawai‘i to allow for full replacement from domestic supply of the some one-third of total Hawai‘i oil imports from Russia and now banned. I also introduced a bill in the U.S. House of Representatives today to mandate such a waiver.
The Jones Act is a century-old federal law that requires all shipping between U.S. ports to be provided by U.S.-built and flagged vessels. With now less than 100 total Jones Act vessels in the country today (including the container ships of Hawai‘i providers Matson and Pasha), with all Jones Act tankers dedicated to other purposes, and with the cost of shipping crude oil from the mainland to Hawai‘i on any available Jones Act capacity being substantially higher than non-Jones Act international shipping of crude oil from overseas to Hawai‘i, Hawai‘i has been driven to depend on foreign oil for its gas and other fossil fuel-based energy needs.
The ban on Russian imports, which has accounted for between one quarter and one-third of all Hawai‘i oil imports in recent years, forces Hawai‘i to seek other sources for its energy needs, and domestic oil is the clearest alternative but for the adequacy and cost of Jones Act shipping. I support the President’s ban on Russian oil and other fossil fuel imports and joined colleagues in Congress in co-introducing our bipartisan Ban Russian Energy Imports Act to prohibit the importation of Russian crude oil, petroleum, petroleum products, liquified natural gas and coal. In Hawai‘i, with widespread support, Par Hawai‘i, our state’s only oil refiner, had already suspended any future purchase and importation of Russian oil.
We understand that all this must be done. However, without action, the people of Hawaiʻi will be asked to bear consequences far out of proportion to those of most other Americans. This is because the best replacement for Russian oil imports to Hawai‘i is domestic supply, and the transport of that supply 2,500 miles to our remote island state must be on the very limited Jones Act tankers if at all.
As a result, the costs of such shipping, even if it were available domestically to start with, would be higher by a number of multiples than transport on the plethora of non-U.S. flagged specialty vessels. These costs would be passed on in price increases that are already among the highest in our country and would directly affect our national defense headquartered in Hawai’i, our economy, and our communities.
The bottom line is that through a combination of factors unique to Hawai‘i, absent action the people of Hawai‘i will be asked to bear a far greater burden of any Russian oil ban than anywhere else in the country. The President and his administration hold the necessary authority to counteract some of the adverse effects caused by a ban on Russian energy imports through a limited, targeted waiver of the Jones Act for domestic supply shipping to Hawai‘i. I will continue to advocate for such a waiver.
Ka‘ena Point One Step Closer to National Heritage Area Designation
In March, the U.S. House approved my bill co-introduced by Congressman Kahele to advance possible designation of Ka‘ena Point on Oahu’s westernmost tip as Hawaii’s first Natural Heritage Area (NHA). NHAs are designated to recognize and protect our nation’s unique conservation, recreation, historic, cultural, education and preservation areas. NHAs can receive federal funds to help local communities preserve and manage such resources under federal-state-community partnerships.
There are currently 55 designated NHAs in 34 states, but none in Hawai’i. Kaʻena Point, largely state-owned, is the perfect candidate for a National Heritage Area in Hawaiʻi given its truly unique cultural, historic and environmental heritage and qualities. The State of Hawaii’s Department of Land and Natural Resources (DLNR) has already created a management plan for the Ka‘ena Point Stewardship Area to protect what is one of the last few remaining and easily accessible wilderness areas on O‘ahu. With a NHA designation, we can unlock federal funds to support these existing local plans for Ka‘ena Point. The community will be fully involved at all stages.
Our bill now moves to the U.S. Senate for its consideration. I welcome your questions on this or other initiatives to preserve our precious natural resources.
Mahalo again for your consideration of this most recent quarterly report from my office. Please contact us or visit my website at case.house.gov for more information on these or any other issues. My staff and I truly look forward to continuing to join you at your meetings and to your continued questions and guidance.