We are meeting to hear testimony on examining the challenges and puerto ricos recovery. We welcome you all here today. I ask for consent for the gentleman from california. The gentleman from new york. And, the gentleman from illinois and the gentleman from new york, with the committee to participate in the hearing. If you notice, these three are already here. If there are no objections, that is so ordered. Under Committee Rule 4f, any oral statements i ask for consent that any member who wishes to make an Opening Statement be made part of the hearing record if they are submitted to the clerk by 5 00 p. M. Today. Without objection, that will be so ordered. So, first, i appreciate the witnesses being on the panel. Lets start with the Opening Statements. I recognize myself for the original Opening Statement. We are here today to look at the hurricaneimpacted territories of puerto rico in the Virgin Islands. Next week the governors will be here with us also to testify. Before we start i wanted very clear that our thoughts and prayers are those who are still suffering hurricane damages. I also want to thank the Emergency Responders for their hard work and kind efforts. There are still in puerto rico and the Virgin Islands, but today we will concentrate on rico. The hurricanes may have gone but my insides now threatening people. This is not over yet. There is much work that has to be done. I wish at the very beginning, the committee is going to examine the challenges to recovery and the role of financial oversight. Two hurricanes exposed a state of affairs in puerto rico that it existed before the hurricanes made landfall. Decades of mismanagement led to a paralyzing debt burden. Last Year Congress stepped forward with the builder was signed into law to try to rectify the problem. The board has been focused on governance reforms. But now with this hurricane, there is also a other works in one must be doing in the boards work has become a even more obligated as we move forward. For example, we have to deal with the puerto rican electrical power authority, which was already bankrupt. Severely mismanaged with a long history of an adequate maintenance and political cronyism and recovering the power grid remains of paramount interest and importance to us. Energy is not only interested but if it is to economically recover it has to have a reliable, abundant, Affordable Energy and that is really one of the key elements if were going to do anything whatsoever with that. I appreciate the appointment and i appreciate the fact that the board is now looking at contract review policies. These are decisions that make an important because we do not want another situation like whitefish to happen again which may have had some initial purpose to it but the procedure was certainly suspect. I appreciate that there has to be some kind of oversight for this going through there. What we are concerned with today is making sure the oversight Management Board has the tools they need to fulfill the responsibility and move forward. Also, to fulfill it in cooperation. We have four entities on the island working for recovery. The commonwealth government, the Oversight Board. There are also two federal agencies, fema and the army corps of engineers. All four of them have to Work Together. Otherwise it is simply chaos. This cannot be an adversarial situation and what we are going to do today is make sure we have the tools necessary to see that go into fruition. The board is not going to go away until their job happens to be finished at some particular time. So we are not going to describe plan. Our goal is to fix the problems and help the people. The problems are too serious for us to politicize and try to make headlines. We owe the citizens more than that. Last week, or yesterday actually, mr. Graves came back from puerto rico with representative gonzalez. 10 days ago there were five of us who went down there. Along with the majority leader and minority whip to see firsthand what is happening down there and but the Virgin Islands and puerto rico. It is clear from what we saw that the devastation and suffering is sobering and it is real. That what was the positive aspect of this, even know their homes or broken their spirits are not. We went into the interior into this particular community and as you can see, there is a bridge that connected the one side of the valley with the other side of the valley. That bridge was washed out in the hurricane. That is all that is left with that. The ingenuity of those families is brilliant. They had jury rigged this contraption. A zipline with a supermarket cart attached to it where they can take it from one side where the stores are and then manually bring it to the other side. An ingenious contraption. Also one of those things, you will notice there is a wooden ladder going up. Give me the next slide if you would. Simply, is tony here . Representative brown was the first one to go across the river bed to go up that ladder. Followed by the rest of us. I promise you osha did not actually certify that particular ladder. As we walked to the other side to meet those families, i promise you that and i think it can be verified, going down was a lot slower than was going up. Up that ladder. But this is what i found on the other side. The governor was there. I have to give kudos, no one works harder to try and help her constituents down there than representative gonzalez says. She is not only the first female representative in puerto rico, she is also the youngest and that energy is showing. She is gone with every single group that is gone down there to show them what is taking place. I want to point out the teenager standing with us. I had the opportunity to meet them on the other side. He is one of the 22 families cut off from the rest of the village, using the zipline and the wooden ladder to get from side to side. That kid was amazing. He was a fascinating kid, interested in what was going on, intellectual, fluent, he wanted to become involved in the future. I was excited talking to him because that kid, that kid is the future of puerto rico. That kid is why i know that puerto rico is not going to just recover, they are going to succeed. The spirit that he had is the kind of spirit we saw in all of the citizens to whom were talking you realized they were not after someone to blame but after a way to make their lives better. I want to make sure we have the tools. We have the tools to make sure the dreams that kid has will be realized. That is puerto rico to me. With that, i will apologize for going over but i want you to see that kid. And i will yield to the Ranking Member. Thank you mr. Chairman. Yourself and members have gone to puerto rico and have firsthand experience and observations about the urgency and the need for this congress to respond in a proactive way and a transparent way, and weighed the deals with the emergence and urgency as it is now and adopt the attitude that as we go forward, how to build sustainability, resilience for the longterm both in the economy and the growth of the rebirth of the infrastructure of the island of puerto rico. If a man is drowning in the ocean, you do not stop to tell him he should take swimming lessons. If a woman is having a heart attack you do not take time to preach to her about the value of the lowfat diet. Instead, you act immediately to save lives. Our american brothers and sisters living on the island of puerto rico are drowning in the ocean. Their water, sewer, transportation, health, Banking Systems are in the midst of what we would call grave danger. If not close to a fatal heart attack. Puerto rico quite frankly does not mean the lecture does not need a lecture. They do not need advice. Puerto rico at this juncture in time and history, what they need his help. Our help. In a month and a half, after Hurricane Maria hit, with wind of 150 miles an hour and two thirds of the puerto rican households still without electricity and 20 without potable, Safe Drinking Water but at the island continues to see landslides. The record flooding that occurred, hundreds of blocked roads, thousands of fallen trees, damaged homes and buildings. Tens of thousands of people of left puerto rico and thousands of businesses remain close. Puerto ricos government expects an estimated cash flow also 1. 7 billion as a result of lost collections with an additional 1. 18 billion lost in water. Those two agencies are currently running on cash reserves. The American People on puerto rico are counting on us to help rebuild the island, starting with the basics. The disaster supplemental spending package is a start. But we need to do much more and we need to do it immediately. The decimated electrical grid and water and sewer systems must be restored and no more sweetheart deals to flybynight companies. That needs to stop in it needs to stop immediately as well. Fema was slow to arrive and slow to engage. Even in the most recent amendment on the second which requires a 10 cash assistance, also putting out external this attempt to get more blood out of a stone also needs to stop. Once the lights are back on and the families have access to clean Drinking Water and medical care, then congress can turn its attention to the future of the island and its economy. But now were being asked we should not be asked to look away from this administrations embarrassing recovery effort and respond to puerto rican families not with help they need but without that would please investors. To use this Natural Disaster as an excuse to give even more advantages to investors who bear much of the responsibility for the shameful fiscal crisis that puerto rico finds itself in his wrong. To use this Natural Disaster as an excuse to say that those living on the island no longer deserve flood prevention regulations or strong protections for clean air and clean water and they no longer deserve the chance to participate in transparent public planning processes would be wrong. Title v gives investors the dual gift of deregulation and privatization for nobit infrastructure projects. If the majority would like to use their devastation to ram these projects through even faster, then that would be a mistake. How is it that is in the interest of the people in puerto rico to get rid of the ability for the public to comment on these projects or to remove the Energy Commissions authority to make sure that the project will work with longterm grid plans. And the oversight has enough power in does not really need more, our response to human suffering has to be about food, shelter, water versed. Not deregulation or politics. It is time to assess the damage, get a real relief package together as fast as possible and start rebuilding in a sustainable way. I hope all my colleagues will join me in getting relief to people who need it most and resist the urge to hand over a price tag or insist on weekend Environmental Standards in public processes in exchange for aid needed to save lives and rebuild communities. With that, mr. Chairman, i yield back. Thank you. We will not recognize our witnesses who are here. Starting from my left. The executive director of the board. I am coming close. Revitalization coordinator of the financial end Oversight Board of puerto rico. Also, mayor perez otero who is here. I appreciate you getting here at the last moment. I realize it was a restaurant to it was a rush job to get here. Thank you for joining us. Do you speak german . I do not speak spanish. When you are recognized, you can tell us the name of your community and where it is because otherwise no one will ever find it if i try to do that. So thank you for being here. I am a little bit chagrined. Were going to have a little bit more panelists here. Last week, two of the panelists decided not to be here. One was the director specifically to talk about the whitefish contract. I understand there are circumstances that require their efforts back on the island at i am sad. A couple weeks ago we requested some documents, those documents arrived very late on friday, we have only looked at them briefly but already there are some circumstances within those documents which add more questions which means at some point i would like those to be answered and someone needs to look at that perhaps next week. I am very disappointed they are not here to answer our questions today but that is the way it is because obviously we will take them at their word that the work on the island is important and needs to be done. If you are not here when i showed the sides, ditch of the showed the slides. I did show the slides of you going down the mountainside and through the river and up that ladder. I want you to know that you still have your in utah to shame. You went down and climbed back up again. It is your fault because you were the first one to go over and you shamed the rest of us and following you. Do you want to respond . Is a point of personal privilege, want to thank you for ensuring that i was able to accompany you and leader mccarthy on what i thought was an important and enlightening delegation to puerto rico, the u. S. Virgin islands, and the keys. And i will be glad later today to share some of my observations. Thank you, mr. Chairman. Thank you. Thank you to all the members have actually been down there. Eventually, you will shave, right . Nevermind. [laughter] i have been seeking to be more like you for quite some time now. I was going to color my hair white but i figured my wife when not be happy with that so i decided just to have speckles in my beard. If you want to be more like me, you will need more than just speckles. I would like to tell the witnesses at Committee Roles give you five minutes for testimony. The written part is already part of the record. If you have not been here before, you have to turn the microphone is on to speak. Please watch the clock in front of you. When the green light is on, that means everything is cool. When it hits yellow that means like in traffic coming up to speed up as fast as you can. When it goes to red, that is when we want you to stop. Dont make me have to cut you off. Ill do to our members but dont want to have to do it to you guys. You are recognized for five minutes. Thank you. Members of the committee, mayor, i am natalie, executive director of the puerto rico financial oversight and Management Board. Thank you for this opportunity to update. In light of the tragic damage to the island by Hurricane Maria and to a lesser extent, hurricane irma. I have submitted written testimony. I look forward to the questions. I want to use my oral statement to make a few points. I want to thank this committee, congress, and the American People for the generous justpast emergency aid package. We are deeply grateful for the extraordinary efforts of fema, the army corps of engineers, and all of those involved in this historic relief effort. I wanted dolls the tireless efforts of the governor, his administration, local mayors, and all of those in puerto rico who are saving lives sense of saving lives and supporting Recovery Efforts. Having served as minister of ukraine and times of war and fiscal crisis, i understand the difficult measures required in times like these. I lived through the painful process of determining how to use limited funds to determine how the government could effectively govern despite the realities. I know the importance of the need to inspire confidence and allow people and businesses to play their vital role in rebuilding puerto rico. The board was established by congress to support the fiscal and economic turnaround of puerto rico as well as restructure the sizable debt obligations at the commonwealth and a number of Government Agencies have incurred over the years. The board is fully up to deal with the debt that puerto rico faced before Hurricane Maria. After the hurricane, it is even more critical that the board be able to operate decisively. The board therefore asks that congress underscore the importance of the board in the posthurricane environment by clarifying we have the Critical Role to play and any funding which will in large measure defined puerto ricos future given the devastation to the economy as in any long term liquidity mechanism, clarity will provide more agility and certainty. It will help avoid more costly litigation and reduce the risk to the overall fiscal and economic recovery of puerto rico. I would like to conclude by outlining for ways we have been pursuing our mission since the hurricane. First, discipline with liquidity processes. In my written testimony i have tried to summarize that hurricane caused liquidity needs as we see them. In short, because of the damage to the ability to collect revenue, destruction to economic activity, the commonwealth and its instrumentalities are facing billions of dollars in cash shortfalls just to provide the basic functions of government. It is essential that the process of providing liquidity assistance is not become detached from the physical process that is the essence of our charge. The longerterm solution that congress is contemplating in the next emergency supplemental should have formalized mechanisms to tie relief to fiscal plans. Revision of those fiscal plans, we are well aware that as you have stated mr. Chairman, will have to revise the this go plans in light of the hurricanes devastation. This process will take several weeks. The board will hold three listening sessions. All will be invited to provide input as part of the process and we have also agreed that the federal mediators can hold two additional sessions with credit or stakeholders. Our aim is to move deliberately to prepare and approve revised plans. The deadline for the commonwealth to submit these draft fiscal plans to the board is december 22, 2017, with review and revision ongoing through february 2, 2018. Deadlines for other entities will follow closely. Third, a chief transformation officer. The board has recently named noel zamot, with all the powers of ceo