To watch a video of Senator Manchin’s opening remarks, please click here.

To watch a video of Senator Manchin’s questioning, please click here.

Washington, DC – Today, the U.S. Senate Energy and Natural Resources Committee held a hearing to discuss the state of the U.S. territories — American Samoa, Guam, the Northern Mariana Islands,  Puerto Rico, and the U.S. Virgin Islands. During the hearing, attended in-person by all five territorial governors, Senator Manchin, Chairman of the Committee, discussed the importance of the territories to the United States’ history, economy and national security. Chairman Manchin also heard from the governors on the challenges facing their constituents and how Congress can continue to support the territories.

“As many of my colleagues know, this Committee has long-standing jurisdiction of territorial policy and insular affairs and I look forward to learning about the opportunities and challenges facing your communities. I would like to start by acknowledging that American Samoa, Guam, the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands are an integral part of the history, economy and culture of the United States, and that each territory is unique with its own set of pressing issues and priorities,” said Chairman Manchin.

During the hearing, Chairman Manchin asked the governors about the inflation rate in their territories.

“To all of you very quickly, what is inflation in your territories, what is the most contributing factor, is it food, is it energy prices? What is your inflation rate and what is the greatest challenge you have?” asked Chairman Manchin.

“Last year [our inflation rate] was about 6%, lower than the mainland but still too high. And it impacted all the different areas that you mentioned, but one area in particular that troubles me is cost of construction materials. The way we are getting the funding from FEMA [Federal Emergency Management Agency] is through section 428 of the Stafford Act which caps the funding. Once you agree to an estimate with FEMA, you have to live with it. The cost overrun goes on you. We are engaged in conversations with FEMA and I’m alerting Congressional leadership that FEMA should have the flexibility to adjust the cap on the projects so that the scope of work of the projects doesn’t get affected,” said Governor Pedro R. Pierluisi.

“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 Governor Arnold I. Palacios.

“American Samoa is at 11%. Costs again, construction, shipping into the island and food are the highest inflation rates,” said Governor Lemani P.S. Mauga.

“I would say the same, ours is about maybe 8-10%. For example, Senator, the price of eggs was $2.99 and now it is $10. So, the cost of our inflation is of course energy, the gas prices and also supply chain,” said Governor Lourdes Leon Guerrero.

“Energy, $0.63 cents per kilowatt hour compared to $0.12 here. Food, a pack of chicken thighs is $35. The last three years [the inflation rate has been] 5%, 5%, 7%. Construction, a public housing unit is costing us $380,000 to $500,000 per unit and construction has tripled,” said Governor Albert Bryan, Jr.

Chairman Manchin also asked about how the Inflation Reduction Act and the Infrastructure Investment and Jobs Act (also known as the bipartisan infrastructure law) are affecting investment in energy technologies in the territories.

“I do know that in the territories, energy is a tremendous factor for you all, the reliability and also the cost. Now with the Inflation Reduction Act and also the bipartisan infrastructure bill, do you see much interest or much technology coming your way, are people wanting to develop hydrogen, different types of new fuel, more reliable fuel, cleaner fuel or using fossil in a much cleaner way? Are you seeing those interests piquing in your areas? Because you would be natural for that to be more self-reliant,” asked Chairman Manchin.

“I issued an executive order in Puerto Rico making green hydrogen a renewable energy, considering it as renewable energy. We have a renewable energy standard which we have to meet. Hydrogen, that’s the future. But since I have a standard that I have to meet as a matter of our energy public policy law, I am considering hydrogen as one of the renewable energy sources,” said Governor Pedro R. Pierluisi.

The hearing featured testimony from Governor Albert Bryan, Jr. (U.S. Virgin Islands), Governor Lourdes Leon Guerrero (Guam), Governor Lemanu P.S. Mauga (American Samoa), Governor Arnold I. Palacios (Commonwealth of the Northern Mariana Islands) and Governor Pedro R. Pierluisi (Puerto Rico).

To watch the hearing in full, please click here.