November 28, 2017 Read More →

‘Marshall Plan’ for Puerto Rico Outlines Modernization Strategy for Shattered Grid

Washington Post:

Sen. Bernie Sanders (I-Vt.) will unveil an ambitious $146 billion Puerto Rico recovery plan he says will allow renewable power sources such as solar and wind to provide about 70 percent of the island’s energy needs within the decade.

The bill, which has the backing of San Juan Mayor Carmen Yulín Cruz, also calls on Congress to consider retiring Puerto Rico’s debt and would give the island billions in additional federal funding for transportation, health care and education in the hopes of stemming a feared mass exodus to the mainland. It would also allocate funds to the Virgin Islands, which were similarly devastated by Hurricane Maria.

“This is the closest we have to a Marshall Plan for Puerto Rico,” said Ramón Luis Nieves, a former member of the Senate of Puerto Rico who has testified to Congress about the hurricane’s impacts.

Sanders’s bill is highly unlikely to get a vote in Congress and is more generous even than the $94 billion requested by Ricardo Rosselló, Puerto Rico’s governor.

Sanders’s bill would give $62 billion to help the cash-strapped Puerto Rican government; $51 billion for economic development; $27 billion for infrastructure, including new energy infrastructure; and billions more for education and environmental remediation.

The Trump administration has requested $29 billion in emergency natural disaster funding to be shared between Puerto Rico, Florida, and Texas — but only a fraction is designated for Puerto Rico. That package is expected to pass.

“More than two months after Hurricane Maria, in the wealthiest nation in the history of the world, most of the homes in Puerto Rico and the U.S. Virgin Islands are still without electricity. This is beyond belief,” Sanders said. “Congress must work with the people of Puerto Rico to fundamentally transform its expensive, antiquated and unreliable system.”

Puerto Rico’s energy grid is maintained by the Puerto Rico Electric Power Authority (PREPA), which has come under fire for what critics have called its slow and ineffectual response to the hurricane. PREPA drew congressional scrutiny for awarding a no-bid $300 million contract to Whitefish, a small Montana firm. PREPA, which filed, in effect, for bankruptcy last July, is the sole provider of electricity for the 1.5 million residents.

Sanders’s bill, which would put $13 billion into rebuilding the electrical grids in Puerto Rico and the Virgin Islands, would bring the debate about privatizing PREPA to a head. The measure explicitly prohibits public infrastructure receiving federal aid, such as the electrical grid, from being transferred to private ownership.

Sanders’ bill would set aside $428 million in grants for homeowners and cities for solar panels and microturbines and more than $40 million for grants to improve home energy efficiency.

“The case for renewables is that it’s the cheapest way to do it, and certainly the cheapest in the island’s isolated communities,” said Steven Kyle, an economist at Cornell University who has reviewed Sanders’s bill. “Since they’re starting from zero, they have a unique opportunity here.”

Most engineers estimate that Puerto Rico could get up to 50 percent of its energy from renewable sources within the decade, according to Sergio Marxuach, public policy director at Center for a New Economy, a nonpartisan think tank on the island territory. “Seventy percent is definitely on the upper bound of what’s possible,” Marxuach said. “But, sure, if you throw enough money at a problem, you can do a lot of things.”

Experts have emphasized that the federal government should not simply replace Puerto Rico’s old grid with a new one similarly exposed to catastrophic storms.

A senior White House official told Reuters that the administration does not support rebuilding the original vulnerable grid. Sen. Lisa Murkowski (R-Alaska), who chairs the Senate Energy and Natural Resources Committee, has backed rebuilding Puerto Rico’s electrical systems with microgrids or through distributed energy — but the senator hasn’t yet introduced legislation for doing so, according to a spokesperson.

“It’d be a phenomenal mistake to spend federal tax dollars rebuilding the polluting, expensive, decrepit grid,” said Judith Enck, who oversaw Puerto Rico as a regional administrator in the Environmental Protection Agency during President Obama’s administration. “My great fear is FEMA will reconstruct the old grid — and when the next hurricane hits, it will all come tumbling down again.”

More: Bernie Sanders to unveil a $146 billion ‘Marshall Plan’ for Puerto Rico

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