2011 Inaugural Address By The Honorable Sebastian L. Anefal ...

For the longer term, we are very cognizant of the desire and need to address thelooming economic and potential financial challenges over the remaining thirteenyears of the Amended Compact period, and the prospect of no financialassistance once the Compact Treaty terminates in 2023. Because of thispotentially awesome challenge, the Administration anticipates to work diligentlywith the State Leadership once the Cabinet is confirmed for the launching of aSecond Economic Summit for the purpose of fine-tuning and chartering the newpath going forward.Energy ReformIn 2008, before the international financial crisis, our primary financial concern wasthe increase in energy costs. As you will recall, the resident consumers in Yapwere paying around $6.00 per gallon at the pump, while in the outer islands theywere paying more than $7.00 per gallon. Although fossil fuel prices have lowered,we can assume they will once again increase as international markets recover. Wemust therefore continue to take the needed steps to ensure an affordable andrenewable energy future.To respond to this reality, we initiated a clean energy package to provideaffordable renewable energy sources and also to ensure a cleaner environmentalfuture in the State of Yap. Our partnership with the FSM National Governmentand the other three State Governments of Chuuk, Pohnpei and Kosrae in responseto the fuel crises resulted in the creation of the FSM Petroleum Corporation whichhas enabled us to buy cheaper fuel. In addition, through the Chief Executive15