The U.S. Department of Energy, for its part, released its official monitoring report indicating that $7 million has been expended from the $29 million awarded to the CNMI State Energy Program.
The report was based on the April 15 to 17 visit of Cathy Iverson of the U.S. Energy’s state energy program.
Iverson “commends the NMI Energy Division for its continued work with the State Energy Program.”
“From the monitoring visit, it is evident that the professionalism of you and your staff is instrumental in promoting and implementing effective energy efficiency and renewable energy programs throughout the commonwealth,” said Iverson who discussed the progress of energy projects with project managers and contractors during her three-day visit on Saipan last month.
These included the Commonwealth Utilities Corp.’s turbocharger project, the Guma Hustisia air-conditioning retrofit and the light-emitting diode street lights project.
Iverson visited the project sites and talked with the contractor about current and future plans.
CNMI Energy Division director Thelma Inos was pleased to hear from Iverson, such a positive response from the U.S. Department of Energy.”
“It is through the hard work and collaborative efforts of our office, other government agencies and most especially the CNMI-ARRA office that has enabled us to achieve such positive results,” Inos said.
Increase
Fred Camacho, CNMI-ARRA communications and compliance director, disclosed yesterday that from the $88 million earlier awarded to the central government, the CNMI’s ARRA funding increased to $120.9 million.
This was due to the most recent awarding of federal monies for the Sandy Beach Homes Project in Chalan Kanoa.
Camacho said there are ARRA projects over which the CNMI central government has no control. The Sandy Beach Home Project is one of these projects, he added.
In analyzing the expenditures related to the CNMI’s ARRA funding, Camacho said it is important to distinguish the amount awarded to central government from the amount received by autonomous agencies.
The monies awarded to the central government totaled approximately $88 million, Camacho said, the largest portion of which is the $44 million in State Fiscal Stabilization Fund.
Apart from the $29 million awarded to the Energy Division, $4.5 million was awarded to Department of Public Works.
ARRA funds were also provided to the Workforce Investment Agency, the Division of Environmental Quality, the Departments of Public Health, Public Safety and Commerce.
Camacho said of the funds they have direct control, $49 million or 50 percent have been expended already on government projects.
The ARRA website, he added, does not distinguish central government awards from those given to autonomous agencies. The amounts are reported cumulatively, he said.
The increase in ARRA funds, along with the $8.1 million awarded to IT&E last year, account for nearly 25 percent of the CNMI’s total ARRA funds, Camacho said.
He said although the CNMI government does not have control over these projects, the ARRA office has to partner with these recipients to ensure the proper administration of fund expenditures.
Expenditure woes
One obstacle that the CNMI has encountered with federal grant expenditures, Camacho said, is the need to comply with the Buy America provision, especially with several large projects.
This law, he said, aims to reinvest federal money in U.S. industries.
However, the blanket provision is not always in the ultimate best interest of local governments, he added.
This is true with products that are not produced and manufactured in the U.S., Camacho said.
A good example of this, he said, is the $4.7 million CUC turbocharger project.
The waiver process for this project continued for approximately four months before the final approval came out, which meant that no expenditures could be made during that time.
A waiver was also requested for the lighting retrofits of the Joeten-Kiyu Public Library, the legislative building, the Commonwealth Health Center and the parking light project.
“The Buy American waiver process is in place to assist local government procure products when they are either not manufactured in the U.S. or when the cost of the product is significantly more expensive within the U.S. than to international prices,” Camacho said.
The CNMI and other insular areas, he added, have historically encountered the Buy America provision as an obstacle in buying due to cost of shipping that significantly raises the price of products manufactured in the U.S.
