FINANCING PUERTO RICO’S
ENERGY TRANSITION
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February 2024
Princeton University
School of Public and International Affairs
February 2024
Princeton University
School of Public and International Affairs
February2024
JeremiahChamberlin
BrentEfron
CharlesFraser
CydneyGardner-Brown
KathleenHannick
LiamMaguire
ChristianPerkins
JustinSchuster
AchinthyaSivalingam
MayaT.Woser
JeremiahChamberlin
AtPrinceton,Jeremiahfocusesoneconomicaccess,socialmobility,andincomeinequality.Priorto hisstudiesatSPIA,heworkedfornumerouscommunity-focusednonprofitsacrossthecountrywith AmeriCorps.
BrentEfron
Brentstudiesdomesticclimatepolicyimplementationandishopingtopursueacareerinfederal climatepolicy.HemostrecentlyworkedintheBidenadministrationattheU.S.EPAasSpecial AssistanttotheAssociateAdministratorforPolicy.
CharlesFraser
CharlieisanMPAcandidatefocusingontheeconomics,finance,andpoliticsoftheglobalenergy transition.BeforePrinceton,heworkedoninternationalclimatediplomacyandfinancefortheUK government.
CydneyGardner-Brown
CydneyisanMPAcandidateandCharlesB.RangelInternationalAffairsFellowatPrinceton UniversityhailingfromDetroit,Michigan.Shefocusesprimarilyonpoverty,urbandevelopment,and diplomacy.Previously,sheworkedastheAmericanRescuePlanActImplementationFellowat PovertySolutionsbasedinAnnArbor,Michigan.FollowinghertimeatPrinceton,Cydneywillbe workingattheUSStateDepartmentasaUSforeignserviceofficer.
KathleenHannick
KathleenisanMPAcandidateatPrincetonUniversityfocusingonanti-povertyissuesand strengtheningthesocialsafetynet.PriortoPrinceton,sheworkedasaSeniorResearchAssistantatthe BrookingsInstitution’sEconomicStudiesprogram.
LiamMaguire
Liam'spolicyinterestslieattheintersectionsofclimatechange,migration,andemergencyresponse. HavingworkedwithUSAID'sBureauforHumanitarianAssistanceandtheUN'sInternational OrganizationforMigration,hehopestocontinueacareerfocusedonenvironmentalpolicyandthe humanimpactsofclimatechange.
ChristianPerkins
AtPrinceton,Christianfocusesonenergyeconomicsandpolicy,andisinterestedinpursuingacareer implementingU.S.governmentprogramsaimedatspeedingthetransitiontorenewableenergysources. PriortoPrinceton,heworkedattheU.S.EnvironmentalProtectionAgency(EPA),andamongother achievements,hewasrecentlynamedanAspenInstituteFutureClimateLeader.
JustinSchuster
AtPrinceton,Justinfocusesonclimatechange,diplomacy,andtheMiddleEast.Previously,he workedasanAssociateDirectorattheCouncilonForeignRelationsandastheManagingDirectorof anonprofitnewsroomcoveringthewarinSyria.
AchinthyaSivalingam
AchinthyaisanMPAcandidateatPrincetonUniversityinterestedinlaborandinternationalclimate policy.Previously,sheworkedattheGatesFoundationandwasanelectoralandcommunity organizer.
MayaT.Woser
MayaisanMPAcandidateatPrincetonUniversity,focusingoninternationaldevelopmentand climatechangepolicy.Shehasresearchandprogrammanagementexperienceacrossnon-profits, multilateralorganizations,andtheprivatesector.
In2019,inthewakeoftheenergyvulnerabilitiesexposedbythedevastatingHurricaneMaria,Puerto Rico passedthePuertoRico EnergyPublicPolicyAct(Act17),anambitiousenergyplantotakethe island to 100 percent renewable energy by 2050. In the four years since the passing of the act, while notableprogresshasbeenmade,PuertoRicoisstillalongwayfromreachingitsgoal.PuertoRicofaces persistentchallengesinachievingitsenergytransitiongoals,includingrecurrentclimate-relateddisasters andfinancialstrainlinkedtothegovernment'srecentbankruptcy.
This report focuses on the financing required to achieve the goals set by Act 17. The passing of the InflationReductionAct(IRA)in2022wasapivotalmoment,signalingasignificantshiftinresource mobilization toward financing clean energy initiatives, not only across the United States, but also specifically in Puerto Rico. The federal government has further committed dedicated funds to the island,withtheSecretaryoftheDepartmentofEnergy(DOE)demonstratingapersonaldedicationto advancingPuertoRico'sobjectives.Althoughfederalfundingisavailable,timeislimited.
This report is designed to aid energy stakeholders in meeting Puerto Rico's clean energy mandate, focusing on identifying and effectively utilizing federal funding sources. The first section presents a detailedoverviewofavailablefederalfundingsources byU.S.governmentagency.Thesecondsection addresseskeychallengesinaccessingandmobilizingthesefundsandbroaderinvestment,ineachcase providingrecommendationsforprogressmovingforward.Theseinclude:
Challenge: Puerto Rico's status as a territory status leaves citizens and entities ineligible to receive the Investment Tax Credit (ITC), hindering investments in renewable energy technologies and infrastructure.
Push the Office of Tax Policy at the Department of the Treasury and the White House to use their authority to waive the current tax rule restrictions for the ITC so it includes Puerto Rico and the other territories.
Waive the current tax rule restrictions for the Investment Tax Credit to include Puerto Rico and the other territories.
Secretary Jennifer Granholm
Department of the Treasury
Challenge: Relevant actors facilitating the energy transition, including PREB, LUMA, Genera PR, and others, lack a central coordinator to manage long-term, large-scale development and financing issues.
Support the development of a Puerto Rican entity that functions as a financefocused coordinating body amongst relevant stakeholders within the territory.
Secretary Jennifer Granholm
Challenge: The Puerto Rico Green Energy Trust lacks the necessary resources and funding to act on its mission.
Provide the Puerto Rican Green Energy Trust with the funds promised in 2022.
Begin hiring senior level staff and raising administrative capacity, with an emphasis on utilizing funds available through the Greenhouse Gas Reduction Fund and to further energy justice throughout low income communities in Puerto Rico.
Governor Pedro Pierluisi
Puerto Rico Green Energy Trust
Challenge: Delays and disruptions to the procurement of utility-scale renewable energy have undermined market confidence and raised costs, threatening a principal avenue for private sector investment in the energy transition in Puerto Rico.
Prioritize increasing public transparency and accountability, including by ensuring a functional central website, providing regular announcements and issuing a detailed, regularly updated timeline to which all stakeholders are publicly committed.
The Department of Energy should maintain its support for the procurement process, providing technical assistance and political direction where possible.
PREB, independent coordinator, LUMA
Secretary Jennifer Granholm
Challenge: Puerto Rico’s progress toward advancing energy efficiency is slow compared to other states and territories, but progress could significantly reduce costs and improve reliability.
Pair existing territory-led energy efficiency programs with available federal funding, leveraging grants, rebates, technical assistance, and other existing programs.
PREPA
As of the 2022 financial year, only 3 percent of Puerto Rico’s utility-scale energy generation came from renewables.ElectricitycostsasofJune2023remainelevated,rangingfrom37percenthigherthanmainland U.S.ratesforresidentialconsumersto168percenthigherforindustrialconsumers.1 Thekeydriverforhigh and volatile prices is Puerto Rico’s reliance on imported fossil fuels especially bunker oil and liquefied natural gas for its electricity generation. These issues are made worse by weak supply links from the mainlandUnitedStatesandfederallawthattypicallypreventsPuertoRicofromreceivingimportsfromthe U.S.mainlandonnon-USflaggedships.2
Table1.PuertoRicanshaveHigherEnergyCostsComparedtoAverageAmericans
Source:TheEnergyInformationAdministration,June2023.
Nevertheless,PuertoRicohasbecomealeaderinthe solarrevolution.Rooftopsolarisrapidlyexpanding ontheisland.Theindustryismorethandoublingeveryyear,with71,000householdsconnectingtorooftop solarpanelsbetweenJuly2021andOctober2022,accountingfor451MWofrenewableenergyexpansion.3 This growth has allowed Puerto Rico to reach one of the highest rates of rooftop solar penetration per householdofanyterritoryorstateinthecountry.4
A major hurdle to the expansion of green energy investments is the fact that Puerto Rico’s government emergedfromafive-yearbankruptcyin2022.Deepfinancialissueshavealsoseverelyimpactedtheisland’s solepublicly-ownedelectricityutility,thePuertoRico ElectricPowerAuthority(PREPA),whichisnow the only major debtor still negotiating the terms of a plan to end its 2017 bankruptcy. The utility’s bankruptcyarosefromalong-termfailuretoensureelectricityratescoveredoperationalcostsandrequired capitalinvestments,coupledwithitssubsequentrelianceonunsustainablelevelsofdebt.5 Thesefinancial issues have limited Puerto Rico’s borrowing capacity and its ability to finance investments in modern infrastructureandnewcleanenergycapacity.6, 7
Tomovetowardasolvent,efficient,andcleanpowersector,reformsbeganin2014withtheestablishment ofanindependentenergyregulator,thePuertoRicoEnergyBureau(PREB).From2018,therehasbeena process to unbundle the generation, transmission, and distribution operations originally run by PREPA. Most electricity sector operations are now managed by two private companies: since June 2021, LUMA Energy(LUMA)hasoperatedtransmissionanddistributionandinJuly2023,GeneraPRbeganoperating legacythermalgenerationplants,whichitisalsoresponsibleforprogressivelydecommissioningasrenewable sources are scaled up.8,9 In addition to its core regulatory functions, PREB has taken on most of the key planningandprocurementresponsibilities.
Despitethesereforms,poweroutagesontheisland,andinSanJuaninparticular,occuralmostdaily,and canlastanywherefromafewminutestomanyhours.LUMAhasmadeincrementalimprovementsingrid reliability and service, but public mistrust of the firm and of the broader electricity system remain high. Ratepayersareskepticalofthesystem’sabilitytodeliverreliablepowerandcomplainaboutrisingbills,as evidencedbyrecentprotestsinSanJuan.10, 11 Thisbroadlackofconfidenceinservicedeliverymayweaken communitysupportfornewrenewableenergyprojects,whichinturnunderminesdeveloperreadinessto proposenewprojects.
Thelong-termfinancialissuesandrecentrestructuringoftheenergysectorhaveincreasedtheimperative foreffectiveplanningandcoordinationoftheenergytransitionsetoutinAct17,alongsidetheterritory’s broaderenergyneeds.Tothisend,since2014,PREPAhasbeenrequiredtodevelopandregularlyupdate anIntegratedResourcePlan(IRP)thatsetsoutacost-minimizingroadmaptomeetPuertoRico’selectricity demand,incorporatingitsrenewableenergygoalsandgridreliabilityandresiliencyrequirements.12
The most recent iteration of the IRP demonstrated the clear business case for urgently accelerating the deploymentofrenewableenergycapacityinPuertoRico.ThispromptedPREPAtoinitiateacentralized processtoprocureutility-scalesolarandbatterysystemsinFebruary2021,with3,750MWofsolarcapacity to be added through a series of requests for proposals (RFPs) issued across six tranches.13 Unfortunately, PREPA’s insolvency, contractual issues, increased costs for project developers, land use concerns, and interconnection issues have all severely delayed this process. Power Purchase and Operating Agreements (PPOAs)forprojectsunderthefirsttranchewereonlyagreedin2023,withtheprocurementprocessfor thesecondandthirdtranchesunderwayatthetimethisreportwaswritten.14 Toaddresssomeofthedelays, PREBistakingamoreactiveroleintheprocessandhasappointedanindependentcoordinatortoleadon an accelerated timeline,15 with project developers now able to access financing support from the DOE’s LoanProgramOffice(LPO).16
Atthesametime,governmentalandnongovernmentalorganizationsareworkingtoboostenergyaccessand resilience for vulnerable, low-income, and rural communities in Puerto Rico. A large network of Puerto Rican and national nonprofits are focused on improving access to distributed energy sources, such as rooftop solar systems and micro-grids. Several non-profit organizations have successfully implemented small-scaleprojectsinPuertoRico,servingasusefulproof-of-conceptforthebroadermovementtoincrease resilienceandreliabilitywithintheterritory.17, 18
Integratedplanningwillcontinuemovingforward,withPREBleadingthenextiterationoftheIRP,tobe publishedin2024.AlongsidethisPuertoRico-ledprocess,theDOE’sGridDeploymentOffice(GDO),in partnershipwithsixnationallaboratories,isleadingthePR100studytomodelscenariosthatmeetPuerto Rico’srenewableenergytargetsandachievebroaderrecoveryandresiliencygoals.Whilethefinalreportis yet to be published, preliminary results demonstrate the feasibility of multiple pathways to meet Puerto Rico’s renewable energy goals, incorporating different scenarios with varying levels of reliance on utilityscaleandrooftopsolarsolutions.19 Recognizingtheseongoingprocessesandthecomplexitiesofthevarious environmentalandpoliticalconcerns,ourreportremainsagnosticabouttheoptimumenergyportfolioand trajectory to achieve the island’s targets. Instead, we assume that a diversified energy portfolio will be requiredandpresentfinancingsolutionstoacceleratetheirdeployment.
Accompanyingtheshiftinpolicyambitionandplanning,therehasbeenanupswellinpoliticalsupportand a substantial influx ofgovernment funds available to finance the transformational investments needed to meetPuertoRico’senergytransitiongoals.20, 21 InthewakeofthedevastationbroughtbyHurricaneMaria, the Federal Emergency Management Agency (FEMA) made available some $9.4 billion in recovery and reconstruction funds for Puerto Rico’s power grid, with more expected to be allocated after Hurricane Fiona in 2022. The funds are targeted toward rebuilding the island’s generation, transmission, and distribution infrastructure, and providing necessary updates to increase resilience while installing new technologiesthatadvancetheisland’scleanenergygoals.
In the Infrastructure, Investment, and Jobs Act (IIJA) and the InflationReduction Act (IRA), Congress approvedhundredsofbillionsofdollarstoadvancethecleanenergytransitionacrossthecountry,including many sources of funding that could directly benefit Puerto Rico. President Biden’s administration is championingPuertoRico’senergyplan,appropriatinganadditional$1billiontoestablishthePuertoRico EnergyResilienceFund(PR-ERF)inFebruary2023.22 TheDOE’sSecretaryGranholmhasalsovisitedthe islandmanytimesduringhertenure,settingtheagendafortheswiftexecutionandmobilizationoffunds todeliverontheterritory’sgoals.23, 24
This report begins with a brief background, positionality statement and the methodology used for identifying parties of interest for different sources of financing. The next section outlines these federal financing sources and opportunities for entities in Puerto Rico, by agency and office. The final section discussesaseriesofkeyandadditionalchallengesinaccessingandmobilizingsourcesoffinancingforthe energytransitioninPuertoRico,providingrecommendationsforchangemovingforward.
A group of ten students in the Master of Public Affairs program at Princeton University’s School of Public and International Affairs compiled this report under the supervision of Professor Eduardo Bhatia, former Senate president of Puerto Rico.25 The report is the product of an applied policy workshopfocusedonidentifyingavenuesforfinancingtherenewableenergytransitioninPuertoRico accordingtotheparametersoutlinedinAct17.
FromSeptemberthroughDecember2023,theworkshopmetwithfederalandPuertoRicanofficials, nongovernmental organizations, wind and solar energy developers, and community stakeholders through a series of virtual and in-person meetings, including during a ten-day visit to the island in October 2023. Combined with independent research on the island’s energy finance landscape and relevantfederallegislationandprograms,thisreportcatalogstheavailabilityandeligibilityrequirements ofrelevantfundingsources.Thereportexaminesthemainchallengestoaccessingthosefundingsources andprovidesasetofrecommendationsforaddressingthosechallengesgoingforward.
As a group of non-Puerto Rican students created this report over the course of one semester, we acknowledge the limits of our understanding of energy financing and implementation, as well as importanthistoricalandculturalcontextinPuertoRico.Recognizingthelimitedtechnicalexpertiseof theauthors,wedonottakeapositiononthebreakdownofrenewableenergyportfolioinvestmentsthat theislandshouldpursue.Wealsodonotmakerecommendationsonotherimportantissuesthatmay significantlyaffectgreenenergyprojects likepermitting aswedeemedthoseoutsidethescopeofthis report.
That said, we met with a wide range of stakeholders involved in the energy transition to prepare this report,includingdozensofexpertsworkingonPuertoRicotax,energy,andenvironmentalpolicy.The diverseperspectivesconsultedpaintabroadpictureoftheopportunitiesandchallengesthatdefinethe energy finance landscape for the island. This report provides a concise synthesis of the insights we collectedfromthesemeetings.Wehopethisreportwillhelpawiderangeofstakeholdersworktoward PuertoRico’senergytransition.
Numerous federal funding opportunities are available to help Puerto Rico finance its clean energy transition. The DOE, the U.S. Department of Housing and Urban Development (HUD), the U.S. DepartmentofAgriculture(USDA),theU.S.DepartmentoftheTreasury(Treasury),andtheEPAall have programs through the IRA and other legislation aimed at promoting green energy projects. In addition,FEMArecoveryfundsforthehurricanesarestillbeingdistributedinPuertoRicoandusedto advancetheisland'senergygoals.
Thissectionofthereportprovidesanoverviewofthefederalfundsrelatedtorenewableenergyavailable toPuertoRicobyagencyordepartment.Formoredetailedinformationoneachfundingsource,please seetheFundingDatabase
TheDOEhasdozensoffundingoptionsavailableforPuertoRicotofinanceitsenergytransition.Here, weoutlinetwentyofthelargestprogramscategorizedbytheirofficewithinDOE.
AfterHurricaneFiona,theDOE’sGDOlaunchedthePR-ERFin2023with$1billionofPuertoRicospecific funding from the FY 2023 Consolidated Appropriations Act to support Puerto Rico’s grid resilience and its transition to 100 percent renewable energy by 2050. The first tranche of PR-ERF funding(upto$450million)aimstosupporttheinstallationofresidentialsolarandbatterysystemsin 30,000–40,000verylow-income,single-familyhouseholds.Thisfirsttranchehasbeenawardedtothirdpartyresidentialdeployers,community-sponsoredresidentialdeployers,andnonprofitsthatwillwork towardbeneficiaryeducation,training,andconsumerprotection.26 ThePR-ERFalsoincludesfunding tofurtherintakeprocessing(SolarAmbassadorPrize)andtosupporteducation,training,andconsumer protection.ThesecondmajortrancheoffundingthroughthePR-ERFwillbeannouncedin2024.27
The GDO also oversees the Wholesale Electricity Market Studies and Engagement Program (WEMSE), which “provides states and regions with technical and financial assistance related to developing, expanding, and improving wholesale electricity markets.”28 In FY2023, WEMSE oversaw $9millioningrantfunding,whichcouldassistPuertoRicosystemoperatorsinconductinganalytical studiesandinterregionaltransmissionplanning.
TheIRAallocated$300millioningrantstotheTransmission SitingandEconomicDevelopment Grants Program (TSED), a program aimed at accelerating and strengthening electric transmission sitingandpermittingprocesses.TSEDisdesignedtoovercomestateandlocalchallengestoexpanding transmission capacity while supporting communities along major new and upgraded lines. In Puerto Rico,LUMAshouldworktoutilizethesefunds.
TheIIJAestablishedtheGridResilienceStateandTribalFormulaGrantProgramatDOE,which isdesignedtostrengthenandmodernizethepowergridtoincreaseitsresiliencetoextremeweatherand naturaldisastersexacerbatedbyclimatechange.29 Theprogramissettoaward$2.3billionfrom2021to 2026. This grant program cannot be used to fund new generation capacity only improving grid resilience.30 Aspartoftheprogram,thePuertoRicoCentralOfficeforRecovery,Reconstruction,and Resiliency (COR3) received a $7.4 million grant for increasing access to cost-effective and resilient electricity in vulnerable communities in July 2023.31, 32 While specific project requirements have not beenpublished,entitiesalreadyprovidingelectricityservicestoruralandremotecommunitieswillbe wellplacedtoseekthisfunding.ThePuertoRicoCOR3officeshoulddefineaclear,publictimeline forcompetitivelyselectingprojectsandawardingthefundingassoonaspossible.
The Transmission Facility Financing Program established by the IRA provided $2 billion in fundingtosupporttheGDO’sdirectloanauthority for facility financing. Loans will support modification of existing facilities and construction of new ones.33 In Puerto Rico, this loan authority allows the GDO to support LUMA’s efforts to revitalizeandstrengthentransmissiontechnology.
The IIJA allocated $2.5 billion for the TransmissionFacilitationProgram arevolving fundthatusesfederaldollarstobuild,upgrade,and expand large-scale interregional transmission lines and connection of microgrids across the United States.Thistypeoffundingisparticularlyimportant forPuertoRico'senergytransitionastheislandseeks tofullyupdateitsgridtomeetenergygoals.
AnotherIIJAprogramistheGridResilienceandInnovationPartnerships(GRIP),whichincludes three funding opportunities for Puerto Rico. The first funding opportunity is the Grid Resilience Utility and Industry Grants Program, which includes $2.5 billion to support upgrades and modernization of the electric grid including transmission and distribution infrastructure so communities are better equipped to handle extreme weather events such as floods, wildfires, and hurricanes.DOEwillprioritizeprojectsthatproducethegreatestcommunitybenefitbyreducingthe harmcausedbysevereweatherandotherdisruptiveevents.
Next,GRIPincludes$3billionofSmartGridGrantsaimedatincreasingtheflexibilityandreliability oftheelectricsystem.Thesefundsfocusonincreasingcapacity,preventingfaults,integratingrenewable energy at transmission and distribution levels, and facilitating the integration of EVs and efficient buildings.
Finally, the Grid Innovation Program will fund $5 billion in grants to support projects that use transmission,storage,anddistributioninfrastructuretoincreasegridresilienceandreliability.Selected projects will include investments to accelerate the interconnectionof clean energy generators and the distributionofbackuppower.
GRIP funds provide ample opportunity for Puerto Rico to continue its transition to 100 percent renewable energy. Specifically, PREB may be eligible to apply for and disburse funds to increase the capacity of Puerto Rico’s transmission and distribution systems, which qualify as allowable activities underthisprogram.
The Renew America’s Schools program has $80 million in grants to promote clean energy improvements suchasenergyefficiency,renewableenergy,andalternative-fueledvehicleupgrades at K-12 schools nationwide, focusing on high-need schools. Puerto Rican educational institutions shouldpreparetoapplyforthenextroundoffunding,whichopensinspring2024.
Similarly,theRenewAmerica’sNonprofitsprogramhas$50millionincompetitivegrants“toreduce carbonemissions,improvehealthandsafety,andlowerutilitycostsatbuildingsownedandoperatedby 501(c)(3) nonprofits.”34 Puerto Rican nonprofits should contact Southface Energy Institute the relevantprimeawardee assoonaspossibletosubmitpitchesforsubrecipientprojects.
Congress created the State Energy Program (SEP) amid the energy crisis of the 1970s to promote energyefficiencyandrenewableenergyefforts.Today,“SEPprovidesfundingandtechnicalassistance tostates,territories,andtheDistrictofColumbiatoenhanceenergysecurity,advancestate-ledenergy initiatives,andincreaseenergyaffordability.”InFY2023,theprogramhas$60millioninformulagrants atitsdisposal.35 TheEnergyPolicyProgramofPuertoRico’sDepartmentofEconomicDevelopment andCommercecancapitalizeonthesefunds.
TheEnergy Efficiency and Conservation Block Grant (EECBG) Program,foundedin2007, has received $550 million from the IIJA. These formula and competitive grants “assist states, local governments,andTribesinimplementingstrategiestoreduceenergyuse,toreducefossilfuelemissions, andtoimproveenergyefficiency.”36 Throughthisprogram,localgovernmentscanpursuevouchersfor thepurchaseandinstallationofenergyefficiencyorcleanenergyequipment.
The IIJA also appropriated $250 million for the Energy Efficiency Revolving Loan Fund (RLF) Capitalization Grant Program, which is “designed to provide capitalization grants to States to establish a RLF under which the state shall provide loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings.”37 The EnergyPolicyProgramofPuertoRico’sDepartmentofEconomicDevelopmentandCommercecan capitalizeonthesefunds.
TheWeatherizationAssistanceProgramwascreatedin1976toincreasetheenergyefficiencyoflowincome households. The IIJA recently provided an additional $25 million to the program, which is allocatedtostatesandterritoriesbasedonaDOEformula.Low-incomePuertoRicansareeligiblefor thesefunds,throughPuertoRico’sStateOfficeofPublicEnergyPolicy.
The DOE LPO oversees the Title 17 Clean Energy Financing Program, which provides access to long-termdebtforcleanenergyprojects.38 Originallypartofthe2005EnergyPolicyAct,theprogram wasrecentlyadoptedintotheIRA.Intotal,theTitle17CleanEnergyFinancingprogramisauthorized to guarantee loans of more than $300 billion.39 Loan guarantees are provided on a project-by-project basis,sothereisnofixedallocation.TheLPOhasdeterminedthatrenewableenergyprojectsandbattery energy storage systems procured through Puerto Rico’s centralized procurement plan (the tranche process, led by PREB) are eligible to apply forTitle 17 loan guaranteesunderthe Energy Investment Reinvestment(EIR)authority.40, 41 TheDOEshouldconsiderwaysitcanprovideadditionalcapacity supporttoPREBtomaximizetheimpactofDOE’sloanguaranteesupport.
TheOfficeofCleanEnergyDemonstrations’(OCED)EnergyImprovementsinRuralorRemote AreasTechnicalAssistanceProgramisa$1billiongrantthathelpsdeploycommunity-drivenclean energysolutionsinruralandremoteareasnationwide.ManyareasofPuertoRicoareconsideredrural andcouldthusbenefitfromthegrant.
OCED also runs the Distributed Energy Systems Demonstrations Program. With $50 million from the IIJA, this program funds distributed energy systems (DES) demonstrating financial and technicalapproachestodistributinglargeamountsofdistributedenergyresources(DERs)tosupport communities. Utilities and for-profits that are workingon DERs in Puerto Rico should capitalize on thesefunds.
Created in 2017, the Office of Energy Efficiency and Renewable Energy (EERE)’s Clean Energy Innovator Fellowship is a workforce development program that provides fellows with on-the-job trainingandprofessionaldevelopmentopportunities.Atthesametime,theirhostsreceivesupportto acceleratethetransitiontocleanelectricityandimprovegridresiliency.Fellowssupportawiderangeof projectscoveringtopicsincludingcleanenergyintegration,expandingelectricvehiclecharging,Tribal energy sovereignty, distribution-level grid services, and grid resilience and energy planning in Puerto
Rico. While Puerto Rico has always been eligible under the program, it has recently received authorizationforeligibleentitiestoreceivemorefellowsthananyotherstateorterritory.42
Communities Local Energy Action Program (LEAP 2.0) provides technical assistance to communities to develop and advance theirown community-driven clean energy transition approach. Specifically,LEAP2.0focusesonservinglow-income,energy-burdenedcommunitiesthatexperience environmentaljusticechallengesand/ordirecteconomicimpactsfromreducingtheirhistoricalreliance on fossil fuels. The program will distribute $18.75 million worth of technical assistance to between twenty-fourandthirty-twoselectedcommunities.
TheIRAprovidesalmost$400billionforenergyandclimateprograms.Mostofthatfunding $259 billion istaxincentivestocorporations($216billion)andindividuals($43billion).43 Todeliverthese credits,theIRAestablishedmonetizationmechanismsbyaddingnewsectionstotheInternalRevenue Code.Section6417establisheselectivepayandSection6418establishestransferability.Theoptionof elective pay (also known as direct pay) enables eligible entities, such as tax-exempt and governmental entitiesthatwouldnototherwisequalifyforspecifictaxcreditsduetotheirlackoffederalincometax liability, to take advantage of certain clean energy tax incentives. The second mechanism, known as transferability, is supposed to make credits available to entities that are not eligible for elective pay. Transferability enables commercial, for-profit entities, such as private solar or wind developers, to exchangetheirtaxcreditsforcash.
The IRA establishedor expandedtwo main typesoftax credits: Production Tax Credits (PTCs)and ITCs.UnderTreasury’sinterpretation,PuertoRicancitizensandentitiesarecurrentlyonlyeligiblefor elective pay and transferability for the PTCs. Seven different PTCs are available to Puerto Ricans, including (1) PTC for Electricity from Renewables that can be used to offset the cost of electricity productionfromeligiblerenewablesources,suchaswind,biomass,geothermal,solar,smallirrigation, landfillandtrash,hydropower,marine,andhydrokineticenergy;(2)CleanElectricityPTC,whichisa “technology-neutral tax credit” for clean electricity production; (3) Credit for Carbon Oxide Credit Sequestration; (4) Zero-Emission Nuclear Power Production Credit; (5) Advanced Manufacturing ProductionCredittofostertheproductionofcleanenergycomponentssuchassolarandwindenergy systems,inverters,batteries,andessentialmaterials;(6)CleanHydrogenPTC;and(7)CleanFuelPTC.
BonusincentivecreditscanalsobeaddedtoPTCs.ThesecreditsboostthegenerosityofthePTCsfor projects in energy communities, projects that meet prevailing wage and apprenticeship standards, and/orprojectsthatuse“domesticcontent,”whichmeansthatthesteel,iron,ormanufacturedproducts usedintheprojectweremanufacturedintheUnitedStates.44
ITCs are the other type of tax credit available, which include five different credits that Puerto Rican citizensandentitiesarenoteligiblefor,including(1)ITCfor EnergyPropertywhichcanbeusedfor fuelcell,solar,geothermal,smallwind,energystorage,biogas,microgridcontrollers,andcombinedheat and power properties projects; (2) Clean Electricity ITC; (3) Advanced Energy Project Credit for manufacturing projects in energy communities; (4) Credit for Qualified Commercial Clean Vehicles including passenger vehicles, buses, and ambulances; (5) Alternative Fuel Vehicle Refueling Property Credit.ITCsalsohavebonusincentivecreditsattachedtothem.Inadditiontotheadderslistedabove forthePTCs,ITCsalsohaveaccesstotheLow-IncomeCommunitiesBonusCreditforsmall-scalesolar and wind or clean electricity projects located on Native American Tribal land, federally subsidized housing,orinlow-incomecommunities.
While Puerto Rican individuals and companies are excluded from taking the ITCs, they could still benefitfromITCsviathird-partyowners(TPOs).ATPOwhoisnotbasedinPuertoRicobutrather inthefiftystatesorWashington,DC,couldclaimtheITCon behalfofanindividualorcompanyin PuertoRico.TheTPOwouldthenaddthosecostsavingsintothefinanceplanoftheentityinPuerto Rico.TPOshavebeenavitalpartofexpandingsolarenergyinPuertoRicoandcancontinuetohelp expandthecleanenergyfootprintontheisland.Energyregulatorsandconsumer-protectiongroupson theislandcanworktogetherwithTPOstoensurethatPuertoRicancitizensandentitiesarereapingas muchoftheITCbenefitsaspossible.
TheIRAalsoestablishedseveralprogramsattheUSDAthattheislandcantakeadvantageoftofinance its energy transition. For example, the Powering Affordable Clean Energy Program (PACE) sets aside$1billiontoenableruralcommunitiestoaccesscleanandreliableenergy.Applicantscanapplyfor loansandloanforgiveness,withamaximumloanincludingaforgivableportionof$100millionanda minimum of $1 million. PACE can be used for wind, solar, hydropower, geothermal, or biomass renewableenergyprojects.InPuertoRico,eligibleprojectscouldincludesolarfarmsservingprimarily ruralareas,energycommunitiesormicro-gridprojects,utilitiesservingruralareas,andenergystorage. The Empowering Rural America (New ERA) program helps rural Americans transition to clean, affordable,andreliableenergy.Byreducingairandwaterpollution,NewERAfundingimproveshealth outcomesandlowersenergycostsforpeopleinruralcommunities.NewERAfundingtotals$9.7billion and is available to member-owned, rural electric cooperatives through loans, grants, and/or loan refinancing.PuertoRicanorganizationscantakeadvantageofthisfundinggiventhatmostoftheisland isconsideredrural.
Finally,theIRAaddedover$2billiontothe Rural Energy for America (REAP)programthatwas established in the 2008 Farm Bill. The REAP adjustment under the IRA sets aside $145 million in guaranteedloansthatcanbenefitsmallbusinessesandfarmersinruralPuertoRico.
FEMA provides funds to bolster Puerto Rico’s resilience to natural disasters. Some of the allocated resourcescansupportrenewableenergyinvestmentsforutilityproviders,aswellasterritoryandlocal governments. While most of FEMA’s public assistance programs need to be linked to damage or emergencyrecovery,somenon-recoveryfundscanfundothermitigationinvestments.
FEMAfundingisareimbursementprogram.FundsareprimarilytransferredthroughtheRequestfor Reimbursement (RFR) process, wherein beneficiaries submit Project Worksheet (PW) requests for approval.
Insomecases,FEMAcanarrangeRequestsforAdvance(RFA).TosubmitaRFA,applicantsshould submit a contract of work, procurement plan, and ninety-day spend plan to FEMA. Final documentationandconfirmationofpaymentswillbeduetoFEMAninetydaysafterthedisbursement ofRFAfunds.
FEMAalsofacilitatesWorkingCapitalAdvances(WCA).ToapplyforaWCA,applicantsdonotneed acontractorprocurementplan.However,theapplicantmustcertifythattheobligatedpermanentwork projectwillcomplywithstateandfederalregulations.UndertheWCA,FEMAwillgrantapplicantsa 25percentadvancepaymentforthefederallyobligatedshareoftheproject(whichis90percent).
In 2020, three years after Hurricane Maria, the agency launched its FEMA Accelerated Awards Strategy(FAASt)forPuertoRico,whichgavePREPA$9.4billiontofundexpeditedenergygridwork and restorations caused by the storm. In 2023, $1.2 billion was also allocated for Hurricane Fiona recoveryfundsundertheFAAStmechanism.Thefundingforgridinfrastructureincludedmicrogrids, substationandtransmissionlinerestorations,andotherprojectstoaidemergencyrecoveryandadvance theisland’stransitiontorenewableenergy.LUMAandGeneraPRareeligibleforreimbursementsfrom thefund,despitePREPAremainingthelegalsubrecipient.45
A percentage of the FEMA Public Assistance funds get allocated to the Hazard Mitigation Grant Program (HMGP). Unlike Public Assistance funds which must be linked to damage, HMGP need
only help mitigate future disasters. These funds can support mitigation projects, including flood protection,retrofittingmeasures,ormicrogridconstruction.46 47
Finally, FEMA supports the Building Resilient Infrastructure Communities (BRIC) and Flood Mitigation Assistance (FMA) grant programs. In FY23, BRIC provided $1 billion to state, local, Tribal, and territorial governments to mitigate the risks of future natural disasters and to increase resilienceandreducesuffering.FMAprovided$800millionforresilienceprojects.48
The EPA has allocated grants, supported by IRA funds, to bolster climate justice efforts within underservedcommunities.Thesegrantsarededicatedtofinancingprojectsthattargetthereductionof pollution, the strengthening of climate resilience, and the empowerment of these regions to tackle challenges related to climate justice. Many of these initiatives focus on sending money directly to communitiestomitigatetheimpactofclimatechange.
Through the Climate Justice Community Change Grants, the EPA has allocated $2 billion for community-based non-profit organizations (CBOs); partnerships between CBOs and federally recognized tribes, local governments, and institutions of higher learning; and collaborating subrecipientsandsubcontractorsformulti-facetedprojectsaddressingarangeofpollution,climatechange, andotherpriorityissues.
The Climate Pollution Reduction Grants (CPRGs) provide “flexible support” for territories to designclimateactionplansthatincorporateavarietyofmeasurestoreducegreenhousegassesacrosssix key sectors: electricity generation, industry, transport, buildings, agriculture, and waste management. Nonprofitorganizations,municipalities,anduniversitiesareeligibleforsub-awards.ThePuertoRico Department of Natural and Environmental Resources (PR-DNER) should consider this program in deciding who it can hire to develop the Priority Climate Action Plan (PCAP) and Comprehensive ClimateActionPlan(CCAP),whichqualifiesasaneligibleexpenditureundertheCPRG.
EPAhasalreadyawardedPR-DNERfundstodevelopitsclimateactionplansunderthefirstphaseof the CPRG program. PR-DNER should also apply for phase two (implementation) funds and work withstakeholdersacrosssectorstoensuretheclimateactionplanreachesabroadrangeofbeneficiaries.
TheGreenhouseGasReductionFund(GGRF)containsthreemainprograms:CleanCommunities InvestmentAccelerator(CCIA),NationalCleanInvestmentFund(NCIF),andSolarforAll
CCIA will deploy $6 billion through grants to two to seven hub nonprofits, providing funding and technicalassistancetocommunitylendersthatareeitherpublic,quasi-public,ornonprofit.Examples of community lenders include green banks, community development financial institutions, credit unions, housing finance agencies, and minority depository institutions. The deadline for these hub nonprofits to apply has passed. Puerto Ricanentitiesshouldbe able tobeginapplying forfundingin late2024.
Through sub-grants or subsidies, the funding assistance will support the capitalization of these communitylenders.Thetechnicalassistancegrantswillbedesignedtohelptheircapacity.Allprojects funded under the CCIA must be spent in at least one of three priority areas: distributed energy generation,net-zeroemissionsbuildings,andzero-emissionstransportation.Theseprojectsmustalsobe locatedinanEPA-designatedlow-incomeanddisadvantagedcommunity.
The NCIF is a new program that will award $14 billion to two to three national green banks. These green banks will fund individuals, families, nonprofits, governments, small businesses, and others to accesscapitaltodeploycleantechnologies.
Allfundsmustbespentononeofthreepriorityprojectcategories:distributedenergygeneration,netzeroemissionsbuildings,andzero-emissionstransportation.Atleast40percentoffundsmustbespent in EPA-designated low-income and disadvantaged communities. As with the CCIA, the deadline for thesehubnonprofitstoapplyhaspassed.Fundingshouldcomeonlinebeginninginlate2024,atwhich pointentitiesinPuertoRicocanapplyforgrantsandloans.
Solar for All is a new $7 billion program created by the EPAto spur the nationwide deployment of residentialdistributedsolarenergy.Uptosixtyawardswillbemadetoentitiesacrossthecountry.The fundedsolarprojectswilleitherberesidentialorservecommunitysolarprojects.Underthestatute,all programfundsmustbespentinlow-incomeanddisadvantagedcommunities.Thedeadlinetoapplyfor SolarforAllfundinghaspassed;however,shouldanentityinorservingPuertoRicobeawarded,Puerto Rican renters, homeowners, municipal governments, nonprofits, and for-profit organizations could ultimatelybenefitfromthisopportunity.
HUDisalsoasignificantplayerinPuertoRico’sdisasterrecoveryeffortsandfinancingitsrenewable energytransition.GivenHUD’sexperiencewithoverseeingtheCommunityDevelopmentBlockGrant Program (CDBG), Congress often allocates the agency additional federal funding after disasters to provideaffectedareaswithanacceleratedinfluxofcash.FollowingHurricanesIrmaandMaria,Puerto Rico received a total of $10 Billion of this Community Development Block Grant Disaster Recovery (CDBG-DR) funding. Congress also allocated an additional $8.2 billion in long-term Community Development Block Grant Mitigation Funding (CDBG-MIT). In 2021, HUD announcedanadditional$1.9billionexclusivelyforimprovingthereliability,resiliency,efficiency,and sustainabilityofPuertoRico’senergygrid,CDBG-DREnergy.
Most of this funding will meet immediate needs and repairs for homeowners, businesses, and infrastructure.However,aportionhasbeenintentionallyinvestedinprogramsfocusedonrenewable energy.CDBG-DREnergynamesthePuertoRicoDepartmentofHousingasthegranteeforthefund, whichisimplementedintwodistinctprograms,ER1andER2.
ER1, also known as the Energy Grid
Rehabilitation and Reconstruction Cost Share Program, covers the required 10 percent non-federal matching funds necessary to access specific FEMA funds for FAAStprojectstobecompletedbyPREPA. This program has a budget of $500 million fromtheCDBG-DREnergyallocation.
ER2, or the Electrical Power and Reliability and Resilience Program, provides direct grants to projects that enhance electric system reliability, affordability, and resiliency through the development and interconnection of microgrids and distributed energy resources, includingrenewableenergygeneration,combinedheatandpowersystems,andbatteryenergystorage systems.Theremaining$1.3billionCDBG-DREnergybudgethasbeenapportionedtothisprogram.
In addition to these allocations, $395 million from the CDBG DR/MIT funds have been directed toward the Community Energy and Water Resilience Installations Program (CEWRI). The programprovidesenergyandwaterefficiencyandresiliencyinstallationtoindividualsreceivingaidfrom the CDBG-DR Home Repair, Reconstruction or Relocation (R3) Program. Eligible low-tomoderate-income households receive improvements, which include photovoltaic system and battery system installation at free or reduced costs, prioritizing the most vulnerable communities across the island.
Through the IRA, HUD also created the Green Resilient Retrofit Program (GRRP), which includesthreeawardtypes:Elements,LeadingEdge,andComprehensive.Elementsawardswillprovide $140 million in funding for owners who are already “materially advanced” in a recapitalization transaction in which the project includes targeted utility efficiency, carbon emissions reduction, renewable energy, and climate resiliency measures. Leading Edge awards will offer $400 million for properties in the planning stages of a recapitalization effort. Comprehensive awards provide $1.47 billion for people interested in improving their property’s utility efficiency and resilience to climate hazardsbutmaynotbereadyforarecapitalizationproject.
Many challenges are hindering Puerto Rico’s capacity to meet its legally binding renewable energy mandates. Barriers to financing the transition in the territory are multifaceted, with historical and structuralimpedimentsmergingtocreateacomplexmixoffiscal,technical,andeconomicconstraints. Many of these barriers directly impact Puerto Rico’s ability to fund or attract investment for a clean energygrid.
PuertoRico’scleanenergyambitioncanandshouldserveasamodelfortherestofthenation,andmany ofitschallengesmirrorthosethatexistonthemainland.Inaddition,someoftheterritory’schallenges tofinancingrenewableenergystemfromexternalconstraintsthatareoutsideitscontrol,suchasitshigh exposuretonaturaldisasters.Nevertheless,certainbarriersaremorespecifictoPuertoRico,forwhich specificpolicyrecommendationscanbeprovided.
This chapter of the report is divided into two sections. The first provides policy recommendations relatedtofivecriticalfinancingproblemareasPuertoRicofaces:
1. InvestmentTaxCreditIneligibility
2. SustainableCoordination
3. TheGreenEnergyTrust
4. TrancheProcessandProcurement
5. EnergyEfficiency
The second section presents challenges that, while relevant, are less closely related to the financing of renewableenergy.Barriersinthisfinalsectionarethereforeconsideredbeyondthescopeofthisreport, and no recommendations are presented. Nonetheless, the discussion provides meaningful context necessarytounderstandthebroaderenergytransitionlandscape.
The ITC for rooftop solar, energy storage, and other renewable energy technology is one of thestrongestincentivesforhomeownersandbusinessestoacceleratethetransitionawayfrom fossil fuels. However, because of its territory status, Puerto Rican citizens and entities are ineligibletoreceivethebenefit.
TreasurycurrentlyinterpretstaxrulesrelatingtotheITCimplementedundertheIRAinamannerthat excludesPuertoRicanentitiesfromreceivingthebenefits.AccordingtoTreasury,theITCs“cannotbe usedpredominantlyoutsidetheUnitedStates(thefiftystatesandtheDistrictofColumbia)unlessthe property is owned bya US corporationorUScitizen...Therefore, property used inthe territories and ownedbyaterritorygovernment,oranentitycreatedinororganizedunderthelawsofaU.S.territory generallywouldnotqualify.” 48F 49
Treasury’scurrentinterpretationoftheITCstatuteleavesPuertoRicans,localterritorialgovernment bodies,andotherorganizationsheadquarteredwithintheterritoryineligiblefortheITCbenefit.This ineligibilitydecreasesaccesstofinancingopportunitiesthatwouldotherwisefundrooftopsolar,battery storage,andotheractivitiesnecessaryforthetransition.
Specifically,thetaxrulesgoverningtheIRAITCsusesection50(b)(1)oftheInternalRevenueCodeto describe eligibility as individuals and entities located within the fifty states and Washington, DC. Treasury’s Office of Tax Policy has the regulatory authority to waive this provision or create an
exception for the territories. When issuing the Proposed Elective Pay Regulations, Treasury used its authoritytoclarifythat“applicableentities”includedterritorygovernmentsforPTC.Usingthatsame authorityinthefinalregulation,TreasurycanclarifythatallIRAtaxcreditsareeligibleforelectivepay andtransferability. 50
TheSecretaryofEnergyshouldpushtheOfficeofTaxPolicyatTreasuryaswellastheWhite House to use their authority to waive the current tax restrictions for the ITC so it includes PuertoRicoandtheotherterritories.
Byprovidinganexceptiontosection50(b)(1),Treasurywouldallowterritoriestobecomeeligiblefor theITC’selectivepayandtransferabilityoptions,whichwouldnotonlyextendtheseITCbenefitsto PuertoRicobutalsoextendtheLowIncomeCommunityBonusCredit.SincenearlyallofPuertoRico would qualify as low-income, residents and entities could see the cost of eligible projects cut in half. Giventhis,andinkeepingwiththepolicyintentionoftheIRA,theOfficeofTaxPolicyshouldwaive thisprovision.
Given the President has delegated the Secretary to spearhead the federal effort to support the energy transition in Puerto Rico, Secretary Granholm should advocate that Treasury and the White House change the interpretation of the ITC allowable investment areas. While this change in interpretation cannotbemadebytheDOEdirectly,leveragingtheagency’ssoftpowerandcolloquialauthorityonthe energytransitioninPuertoRicoshouldhelpprompttheadministrativeprocessnecessarytoimplement amoreinclusivereadingofthestatute.
Over the past year, the DOE has played a crucial role in convening and coordinating various stakeholdersinthePuertoRicanenergysector.However,leadershipwithintheDepartment, including its Secretary, may change depending on the outcome of the 2024 election cycle, meaning a long-term presence by the federal government may be unsustainable. Likewise, relevant actors facilitating the energy transition, including PREB, LUMA, Genera PR, and others, lack a central coordinator to manage progress and issues related to long-term, largescalerenewableenergypenetration.
In September 2022, Hurricane Fiona devastated Puerto Rico with record rainfall, mudslides, floods, and as a result, widespread power outages, compounding damage from Hurricane Maria.50F 51 In its aftermath, President Biden designated Secretary Granholm to coordinate federal efforts “to help transformtheentiresystemofPuertoRico.”51F 52
Over the pastyear, Secretary Granholm has prioritized the Puerto Rican energy transition withinher department. To achieve this goal, she has established the Puerto Rican Grid Recovery and ModernizationTeam,ledbyDirectorAgustínCarbó-Lugo,andhasvisitedtheislandseveraltimessince November2022.52F 53, 53F 54 AccordingtoasourceatDOE,duringthesetrips,theSecretarymeetswithkey decision-makersfromrelevantfederalandstategovernmententities,includingFEMA,HUD,PREPA, Genera PR, and the Financial Oversight and Management Board for Puerto Rico (FOMB). Furthermore, the Secretary receives regular updates from participating agencies every six weeks to monitortheprogressofongoingprojectsandworkstreams.
Duringmeetingsontheisland,relevantgovernmentbodiesandotherstakeholderssignaledappreciation fortheextrapushbyDOEandtheSecretary.However,thenationalpoliticalclimatemaymakeDOE’s roleinthisspaceunsustainable.Withcontrolofthe Housechangingfollowingthe2022election,the DOE faces new scrutiny regarding the Secretary’s policy priorities. 55 The upcoming presidential electionalsocreatesuncertaintyfortheroleofthefederalgovernmentinPuertoRicoafter2024.Should PresidentBidenlosereelection,SecretaryGranholm’ssuccessormaybeunwillingtoprioritizePuerto Rico’senergytransitioninthesameway.
DespiteplayingalargeroleinpushingthecleanenergyagendaforwardinPuertoRico,theSecretary’s rolewithinPuertoRico’sinternalaffairsislimitedbydefinition.Forexample,itisnottheroleofthe
federalgovernmenttobeinvolvedinPuertoRico’slocalpoliticsorlandusepolicies.WheretheDOE does not weigh in, Puerto Rican entities and other organizations taking a more ad hoc approach to financingthetransition,whichdoeslittletospeedtheterritorytowardsitsrenewableenergymandates. Asa result, across the landscape of actors invested in the renewable energy transition in Puerto Rico, therehasbeenagapinplaceofacentralplanningandcoordinatingentity.
TheDOEshouldsupportthedevelopmentofalocal,PuertoRico-basedentitythatfunctions as a clean energy finance-focused coordinating body amongst stakeholders. Based on our analysis, the newly established Green Energy Trust, once functional, could perform this role withtherightorganizationalsetupandleadership.
Giventheradicalchallengetoachieveafulltransitiontorenewableenergyby2050,it’scriticaltobuild out an institution to coordinate efforts. To our knowledge, there is no functioning organization that performsthisroleorcanfillthisgap.However,theGreenEnergyTrust,oncesetup,couldtakeonthis role.Asaquasi-governmental,publicly-fundedorganizationcommittedtoadvancinggreenenergyon theisland,theGreenEnergyTrustmaybewellpositionedtoactasacentralized,coordinating agency. Ifthisoptionisexplored,itwouldrequiremodifyingandexpandingtheGreenEnergyTrust’scurrent mandate,asitisnottechnicallydesignedtoplayanadvocacyorcoordinatingfunction.Theremayalso beotherPuertoRico-basedorganizationsthatarebettersuitedtotakeonthisrole,oranentirelynew organizationmayneedtobeestablished.
Somekeyfunctionsassociatedwiththiscoordinatingorganization(whethertheGreenEnergyTrustor adifferententity),include:
Tracking federal and private funding opportunities. While some deadlines for federal funding have passed, many loan and grant programs remain available for Puerto Ricans. 56 Further, in the funding application cycles that have passed, Puerto Rico has submitted applications for which the timelineandresultsareunknown.
Engagingrelevantpartnersintheapplicationprocess.ThemanyactorsinPuertoRico'stransition lack coherent leadership and coordination across their mandates. Bringing in an entity to increase efficienciesandidentifyandgrowthecoalitioniscriticaltosuccessfullyexecutingtheenergytransition. This alsoincludes bringing grassroots, community-led organizationsinto theconversation,since they
bringperspectivesthatareessentialtoinforminganequitableandjusttransition.Thesegroupsareoften smallerinsizeandhencefinditmorechallengingtoparticipateinongoingprocessesanddiscussions.
Technical assistance for applications. Many applications for federal funding require technical knowledgeregardingbotheconomicoutcomesandrenewableenergytechnology.Itiscriticaltobuild capacity to ease access to this information for smallbusinesses and local governments to enable more robustapplications.
Monitoringongoingworkandarchivingefforts. Itisunclearwheretheworktoward100percent renewableenergystandsatahighlevelacrossallactors.ThenextiterationofPuertoRico’sIRPandthe PR100 report are likely to provide comprehensive technical answers, but the financial and political hurdlesandlessonslearnedwilllikelynotbeincluded.Anorganizationmusttakestockofwhathasbeen donesofartochartamorerealisticpathforthefuture.
Liaising with federal offices. MuchofthefundingthatPuertoRicorequiresforthetransitionwill come from the federal government in the form of grants and loans. Liaising with federal offices to understand how Puerto Rico can best take advantage of what may come down the pipeline and preparingorganizationsonthegroundiscritical.Trackingnewregulationsandnewpolicieswillalsobe tothebenefitoforganizationsworkinginPuertoRico.
Supporting coordination and convening of relevant stakeholders. At present, Secretary Granholm’s regular visits to the island also serve as a time for various stakeholders to come together, provide updateson theirwork, communicate with one another, andcreate goals forfuture meetings. This important function may be eliminated if there are changes to federal leadership or if Secretary Granholm’svisitsbecomemoresporadicforanyotherreason.Ifindifferentadministrationsthereisan absenceoffederalleadershipfocusedonPuertoRico,acentralized,dedicatedorganizationontheisland should ensure that these important regular meetings take place to provide a space for stakeholders to engage,shareupdatesandlearnings,andharmonizetheirefforts.
ThePuertoRicopublicgreenbank,thePuertoRicoGreenEnergyTrust,lacksthenecessary resourcesandfundingtoactonitsmission.
Act 17 called for the creation of a green bank broadly modeled after the NewYork and Connecticut greenbanks,aswellaslocallyafterthePuertoRicoLandandScienceTrusts.TheGreenEnergyTrust issupposedtoprovideincentivestosupportPuertoRico’sresidents,businessowners,andgovernment toinvestingreenenergyinaccordancewiththerenewableenergytargetsofAct17.57 AccordingtoAct 17,otherkeyobjectivesoftheTrustincludebutarenotlimitedto:
● Promotethegrowthofgreenenergyproducers.
● EncouragePuertoRicanconsumerstobecomeprosumers.
● Educatethepublicaboutgreenenergy.
● Supportpilotprogramstoincreaseaccessibilityanduseofgreenenergysources.
● Establish programs to support low and moderate-income communities in accessing green energy.
● Support municipal energy, solar, and microgrid businesses in low and moderate-income communities.
● Facilitatefinancingofgreenenergyprojectsinsmall,medium,andmicro-businesses.
DespiteAct17“creating”thetrustnearlyfiveyearsago,theTruststillhasonlyonestaffmember(hired in2023)andhasyettobringonanexecutivedirector.57F 58 Thereisalsocurrentlynowebsite.Addressing thesekeyorganizationalchallengesareimperativetoitcarryingoutitsstatutorymandate.
In2022,GovernorPierlusipledgedtoseedthetrustwith$400-$500millioninfundingmadeavailable through HUD’s CDBG-MIT.58F 59, 59F 60 While this investment would make the Trust one of the largest such entities in the country, as of the publication of this report, these funds do not appear to have materialized. With their proven track record in the states, green banks are an effective method for amplifying the financial impact of public dollars in deploying climate solutions. As an example, the ConnecticutGreenBankfoundthatforevery$1ofpublicfundscommittedbythebank,itgenerated anadditional$7inprivateinvestmentinthelocaleconomy. 61 Asof2023,thereweretwenty-fiveactive greenbanksacrosseighteenstatesandtheDistrictofColumbia,withover$9billionmobilizedinpublic andprivatecapitalsince2011.61F 62 Withtherequisiteresources,theTrustcouldbecomeamajorplayer
in Puerto Rico’s energy financing landscape. The Trust would also be a natural vehicle for receiving fundingthroughmultiplenewprogramscreatedundertheIRA.However,initscurrentstate,thereis littlecapacitytoadministerthesenewprograms.
TheGovernorshouldprovidethePuertoRicoGreenEnergyTrustwiththefundshepromised in 2022. Secretary Granholm and others working in the Puerto Rico energy space should ensurethisissueisbroughttohisattention.
Despite its slow and jilted start, the Trust has the potential to be a leader in Puerto Rico’s energy transition and occupy an important role in coordination, administration, and messaging. For these reasons,theTrustmustbecomeoperationalassoonaspossible,inlargeparttoleverageitspositionto seekfederalfundinginsupportofitsmission.
Becoming operational necessitates funding. The Governor promised to provide the Trust $400-$500 millioninfundingin2022butthishasyettobedelivered.Hisofficeshouldexpeditiouslyprovidethis support or at least some level of funding that would allow the organization tobegin delivering on its legallymandatedresponsibilities.
GivenherprominentroleinPuertoRico’senergysector,theSecretaryofEnergyandherstaffshould underscore the importance of getting the Trust up and running. Other stakeholders in Puerto Rico, includingmembersoftheprivatesectorandenergyjusticeorganizations,shouldalsoadvocateforthe GreenTrusttoreceivethisfunding.
The Green Energy Trust’s Board should mobilize rapidly to build out the organization’s administrativecapacityandachieveitsstatutorymission.Itshouldpayparticularattentionto utilizingfundsthroughtheGreenhouseGasReductionFundtoachievethisgoal.Thereshould alsobeanefforttoprovideasmuchbenefitaspossibletolow-incomecommunitiesinPuerto Rico.
IftheTrustistobecomeaproductiveorganizationandachieveitsnumerousstatutoryobjectivesaslaid outinAct17,itneedstorapidlybuilditsadministrativecapacity.Followingtherecentappointmentof aCEO, 63 theTrust'sBoardshouldsupportaprocesstorapidlyrecruitafullexecutiveleadershipteam. Whilestaffdataisnotavailableforallgreenbankinstitutionsinthestates,areviewofseveralwebsites suggests these organizations tend tohave staffofatleasta dozen, and in thecase of theRhode Island GreenBank,roughlyfiftyemployees.TheTrust'sBoardshouldactswiftlytocompletetheonboarding ofthenewCEOand,subsequently,otherseniorstaff.
In building out organizational capacity, we recommend that the Trust’s Board and, ultimately, its Executive Director should focus on how the organization can best position itself to apply for and administerfundingmadeavailablethroughtheEPA’sGGRF.Thisisparticularlyimportantgiventhe magnitudeoffundingavailablethroughGGRF,whichcould,inturn,allowtheorganizationtoachieve itsotherobjectivesandbecomealargerplayerinthePuertoRicocleanenergyfinancespace.
BasedonaconversationwithBoardmembers,weunderstandthattheTrustwaspartofanapplication for the GGRF’s Solar for All program. Should itwin this competitive grant process, staffing support willbeneededalmostimmediatelytosupportthedevelopmentofanew,likely$100+millionprogram. AnnouncementsareexpectedfromEPAinSpring2024.
The GGRF alsoincludestwootherprograms forwhich the Trusthasnotyetbeen able toapply,the CCIA and the NCIF. Together, in mid-2024, these EPA programs will provide over $20 billion to regional and national nonprofit financing organizations.63F 64 These awarded organizations will then begintoprovidebothgrantsandloanstoinstitutionsliketheTrustbeginninginfall2024.Thescaleof thefundingsuggestshundredsofmillionsofdollarscouldbemadeavailableforPuertoRicanentities
liketheTrustbeginningtowardstheendof2024.WhilethereissometimefortheTrusttoprepareto bothapplyforandadministerfundingundertheseprograms,beginningtheseeffortsnowcouldprovide acompetitiveadvantageoverotherinstitutionsinthemainland.
Act 17 states that the Trust should “establish program[s] or financially support projects that provide residentsoflow-andmoderate-incomecommunitieswithaccesstogreenenergy.”Werecommendthat the Trust commit to not just supporting projects that will provide these communities with access to green energy but further commit to providing at least 40 percent of the financial benefit from its programs to low-income and disadvantaged communities. This would be in line with all three of the programs organized underthe GGRF, which have requirements that between 40 and 100 percent of funding be spent in low-income and disadvantaged communities.64F 65 The White House’s Justice40 program or California’s CalEnviroScreen could serve as a guide for identifying communities and providingbestpractices.66, 67
Finally, after developing sufficient staff capacity for its statutory responsibility, the Trust could be a naturalvehicletocarryoutseveraladditionalresponsibilities.Manyofthesepossibleresponsibilitiesare outlinedintherecommendationonsustainablecoordination.
Delaysanddisruptionstothe centralizedprocurementofutility-scalerenewable energyhave undermined market confidence and raised costs, threatening a principal avenue for private sectorinvestmentintheenergytransitioninPuertoRico.
Since 2021, the government in Puerto Rico has pursued a centralized procurementprocessto deliver 3,750MWofutility-scalesolarphotovoltaicgenerationcapacityand1,500MWofbatterystorage.This process was recommended by the most recent iteration of the territory’s IRP, with the compelling economicsofnewutility-scalerenewablegenerationofferinglowercostsforconsumers,especiallywhen comparedtoPuertoRico’sexistingexpensivefossilfuelgeneration,andapathwaytomeettheterritory’s legallybindingtargets. 68 Theplan,puttogetherbyPREPA,wastocompetitivelyprocurethiscapacity throughaseriesofRFPsforprivatesectorentitiestodevelop,operateandmaintainrenewableenergy projects. Six RFP tranches of between 500 and 1,000 MW were to be issued at six-month intervals betweenDecember2020andJune2023.69
Unfortunately, this process has suffered severe delays and disruptions that have undermined market confidence and raised costs, ultimately slowing the expansion of renewable energy in Puerto Rico. PPOAsforprojectsunderthe firsttranche were only approved in 2023,well over two yearsafterthe RFPwas issued, with thesecond and third tranches initiatedmore than a yearlate. 70 Often, utilities can leverage their revenue base to access debt from financial markets to support this kind of infrastructure investment, but PREPA’s ongoing Title III bankruptcy proceedings and long-term record in failing to ensure tariffs recover costs mean it does not have the creditworthiness to access private lending at feasible rates. 71 Overall developer and investor confidence is also likely to be negativelyaffectedbythegenerallackofpublicconfidenceintheelectricitysectorandservicedelivery provided by PREPA, LUMA and otherentities. In addition to this broad lack of market confidence, specificissueswiththetermsofthePPOAsofferedbyPREPAandtheprocessitfollowedhaveseverely delayed reaching financial close for tranche 1 projects and undermined the broader credibility of the process.71F 72 Theseissueswereexacerbatedbyrisingequipment,supplychainandfinancingcosts,which pusheddeveloperstoseekupdatedpricinginthetermsofthetranche1PPOAs.73
Note:Theoriginal andupdated timelinefortheprocurementofrenewablegenerationandbattery storagecapacity. Thisisa reproductionofFOMB’stable.
Source:FinancialOversightandManagementBoard.“Exhibit2424in2023CertifiedFiscalPlanforthePuertoRicoElectric PowerAuthority.”June23,2023.https://oversightboard.pr.gov/fiscal-plans-2/
Therearenoweffortstoaddresstheseissues.PREBhasbecomemoredirectlyinvolved,appointingan independent coordinator to lead the process for the subsequent tranches73F 74, 75 and ordering an investigation into the persistent delays.76 An accelerated timeline is being followed to partially
compensate for the delays so far. The DOE’s LPO has provided capacity support to ensure the bankabilityofthe PPOAs, enabling projectsundertranche 1 to progress. In July 2023, theDOEalso announcedthatprojectsprocuredthroughtranches1,2,and3wouldbeeligibletoseekloanguarantee support through the Energy Infrastructure Reinvestment component of the LPO’s Title 17 Clean Energy Financing program.76F 77 This support should boost market confidence and reduce financing costs,hopefullyloweringbidpricesfortranchesthatarecurrentlyunderprocurement.
Problemsstillpersist.LongdelaysinthecompletionofLUMA’sgridinterconnectionstudiesareakey barrier,creatinguncertaintyaboutfinalcostsforprojectdevelopersandslowingtheoverallprocess. 78 Thereisalsoalackoftransparency:thisreport’sauthorswereunabletoeasilyfindinformationonthe currentstatusoftheprocurementprocessonline.Thereisverylittle,ifany,currentinformationonthe dedicated website created by the independent coordinator. 79 This is despite the fact that greater transparency and accountability are known to be key to building greater public trust in such a procurementprocess.80
PREBandtheindependentcoordinatorshouldprioritizestrengtheningthecredibilityofthe procurement process by increasing public transparency, accountability, and communication withallkeystakeholdersandinlinewithrecognizedbestpractices.80F 81, 81F 82
Improvingtheprocurementprocesswillboostmarketconfidenceandattractmorerobust,competitive, and cost-effective proposals and private financing. Specific short-term priorities should include deliveringafunctionalcentralwebsite,providingregularannouncementsandissuingadetailedtimeline thatiskeptupdatedandtowhichallstakeholdersarepubliclycommitted.PREBandLUMAshould also work together to speed up interconnection studies in order to provide project developers with greatercertaintyaboutinterconnectioncostsandensuretheagreedprocurementtimelinescanbemet.
The DOE should maintain its strong support for this procurement process and its timeline, providingtechnicalassistanceandpoliticaldirectionwherepossible.
GiventhelikelyimportanceofTitle17loanguaranteestothecommercialviabilityoffinancingutilityscalerenewableenergyprojectsinPuertoRico,theLPO’sengagementandcoordinationwithproject developers, investors, and the Puerto Rican authorities should happen as early as possible. The LPO should act proactively to support proposals and maximize the likelihood that this federal financial supportcanbedelivered.
Puerto Rico’s progress in advancing its energy efficiency policy has been slow compared to otherstatesandterritoriesintheUnitedStates,butimprovementscouldsignificantlyreduce theenergydemandontheisland,decreasingblackoutsandbringingdowncosts.
WhentheAmericanCouncilforanEnergy-EfficientEconomy(ACEEE)reviewedthestateofenergy efficiencyregulations,codes,andotherinitiativesinPuertoRicoin2016,itrankedlowerthanoverforty USstates.WhilethiswasthelastsuchreviewbyACEEEofPuertoRico’senergyefficiencyprograms,it indicatedtherewassignificantroomforimprovement.
A 2023 study from the ACEEE found that investments in energy efficiency are both cheaper than investing in energy generation and effective in offsetting the escalating costs of fossil fuel-based energy.
82F
83 AsPuertoRicostrivesforhighlevelsofrenewableenergypenetration,stronginvestmentin energy efficiency today could pay large dividends down the road. Moreover, energy efficiency improvementswouldreduceenergycostsforconsumers,aswellasthe overallstrainontheelectricity grid.Suchareductioninloadwouldlessenthelikelihoodofpowerdisruptions.
UnderAct17,PuertoRicoislegallyobligatedtoimproveitsenergyefficiencyby30percentby2040.
84 In pursuit of this goal, PREB put forward updated energy efficiency regulations in 2022. 85 In these regulationsPREBmandatesthatPREPAcreateandimplementenergyefficiencyprograms,yetfederal
programs are not cited as possible sources of funding, resources, or support. Given the availability of new federal funding for energy efficiency upgrades under the IRA, there may be room for PREB to updatetheseregulationsfurther.
Update PREPA’s energy efficiency programs by pairing them with readily available federal funding programs, using the grants, rebates, technical support, and other assistance to maximizePuertoRicanenergyefficiency.
PREPAhasbeenmandatedbyPREBto“developandofferenergyefficiencyprograms”;theseinclude services,initiatives,andeducationforcustomersandsmallbusinesses.85F 86 Numerousfederalprograms areavailabletothisend,particularlyundertheDOE’sOfficeofStateandCommunityEnergyPrograms (SCEP). These include the Weatherization Assistance Program, the SEP, the Energy Efficiency RLF Capitalization Grant Program, and the EECBG Program, among others. The IRA also offers federal incometaxcreditsandincentivesforhomeowners,homebuilders,andcommercialbuildingownersfor variouskindsofenergyefficiencyimprovements.86F 87
Some of these programs are already active in Puerto Rico and have created positive benefits for thousandsofpeopleacrosstheisland.87F 88 However,noneofthesefederalprogramsorfundingsources arereferencedinPuertoRico’senergyefficiencyregulations,presumablybecausemostoftheavailable federalfundingwasintroducedafterPuertoRico’sregulationwasfinalized.Thesefederalprogramsare alsonotidentifiedinanysubstantialmannerinthemostrecentversionofPuertoRico’sIRP.
EnergyefficiencymeasuresareessentialifPuertoRicoistoreach100percentrenewableenergyby2050, as these initiatives lower the total energy needs of consumers. As PREPA develops and implements energyefficiencyprograms,itshouldleveragefederalfundingtoamplifytheimpactoftheseefforts.In addition,PREPAshouldseektopartnerwithSCEPontheseendeavorsinordertoreducetheleadtime requiredtogetPuertoRico’senergyefficiencyprogramsoperationalandeffective.PREBcouldensure thisworkisundertakenbyupdatingthe2022regulationstoreflectnewfederalfunding.
PuertoRicoalsofaceschallengesinitstransitiontorenewableenergythatarelessdirectlyrelatedtoits ability to finance the necessary investments. As such, it is beyond the scope of this report to provide recommendations on these issues. Nevertheless, understanding the broader context in which Puerto Rico’s financial barriers exist is critical in navigating the complex landscape of the ongoing energy transition.
Asinmanystates,PuertoRico’sstateandlocalpermittingprocesseshavebecomeanobstacle inreachingitsrenewableenergymandates.
In conversations with representatives of clean energy developers and advocates, permitting issues continuedtocomeupasachallengeforthefinancingandtimelydeploymentofrenewablesinPuerto Rico.Otherswemetdescribedthepermittingprocessasnomoreofanobstaclethaninanyotherstate. Regardless,researchfromtheBrookingsInstitutionsuggeststhatpermittinghasbecomeanobstacleto renewables nationwide.88F 89 Unnecessarily bureaucratic permitting processes can obstruct the constructionofcleanenergygeneration,distribution,andtransmissioninfrastructureatthepaceand scalerequired.
Toaddresstheconcernsofcleanenergyinvestors,PuertoRico'sstateandlocalgovernmentsmayneed toadoptmoreefficientapproachestoexpeditesiteselectionandauthorizationofcleanenergyprojects and their infrastructure. The current bureaucratic backlogs and unnecessary red tape often result in significant delays and additional costs, possibly leading to project termination. 90 Streamlining the processcouldensurethetimelycompletionofcleanenergyprojectsandestablishPuertoRicoasaleader indeliveringtheenergytransition.
However, environmental and community protections should notbe ignored in pursuitof expediting the deployment of clean energy. 91 Certain states have begun to demonstrate ways to reconcile these concerns,suchasNewYork'screationoftheOfficeofRenewableEnergySiting,whichcombinesthe permit application and review process into one department.91F 92 Similarly, Illinois passed legislation to standardizepermittingforrenewableenergyfacilities. 93
SincefinancialinclusionratesarelowerinPuertoRicorelativetomanystatesonthemainland, individual Puerto Ricans may find it more difficult to access financing opportunities to supportinvestmentsinrenewableenergysystems.
Low financial inclusion rates in Puerto Rico leave residents with less access to credit, meaning even households willing to invest in clean energy are often unable. According to the Consumer Financial Protection Bureau (CFPB), over ten percentof households in Puerto Rico lack a checking orsavings account, and some forty percent do not have a credit card. Many solar TPOs and government loan programs require individuals orhouseholds to havea minimum creditscore. However, Puerto Rican residentsfacehigherratesoffinancialhardshipthanmanycommunitiesonthemainland,andaccessto financialinclusionissignificantlylower. 94 Lowerfinancialinclusionontheislandleadstolesstake-up ofterritoryandfederal-ledprogramsmeanttoacceleratethetransitiontorenewableenergy.
Manyenvironmentalistsandactivistswithintheagriculturesectorcontinuetochallengelargescalesolardevelopment,citingtheprotectionofsensitiveecologicalareasandtheunnecessary modification of otherwise arable land. Developers could do more to respond to the concerns ofthesegroups,manyofwhichincludecommunitymembersandfarmers.
In August 2023, a coalition of environmental activists in Puerto Rico sued FEMA to halt the development of utility-scale renewable energy projects on agricultural land.94F 95 PREB, the body responsible forapprovinglarge-scale utility projects, has so fardevoted five thousand acres of land to high-capacity solar and wind. The lawsuit is a culmination of a broader effort among activists who oppose constructing renewable energy projectson fertile land. Puerto Rican officials have yet to find
thebalancebetweenrenewableenergydevelopersandtheselocalcommunitiesandactivists,butmoving forward,thisbalancewillbecriticalinensuringajustenergytransition.
Sincethemid-1960s,theislandhaslostaboutseventypercentofitsagriculturalland,andPuertoRico’s own 2016 Land Use Plan attributes the deficit in agricultural productivity in part to this arable land loss.95F 96 Whileactivistsgenerallyagreewiththeefforttotransitionawayfromfossilfuels,theypointto alternative sites upon which it is possible to build large-scale renewable generators. These areas, they argue, include existing parking lots, landfills, or Brownfield sites that do not threaten Puerto Rico’s already dwindling agricultural land. Activists from organizations like Sierra Club also push for mass installationofrooftopsolar,whichtheysayreducestheneedforlarge-scaleprojectsthatdisruptsensitive agriculturalandhistoricalsites.96F 97
FEMA,PREB,anddevelopersarguethatwhileutility-scaleenergyprojectsdorequiremoreland,much of the available arable land in Puerto Rico is not currently producing crops. In 2018, the National AgriculturalStatisticsServicenotedroughly14percentofagriculturallandwentunused,meaningno farming occurred on sites well-suited for such activities. When also accounting for land suitable for pastureorgrazing,wheresolarfarmscouldcoexistalongsidecattle,thepercentageofunusedlandrose to over 50 percent.97F 98 While some argue that expanding renewable energy on agricultural land will threatenPuertoRico’sfoodsecurity,otherspointoutthattheislandalreadygrowsonlyafractionof whatitconsumes. 99
These challenges have already threatened the development of large-scale projects within the territory. Regardlessof either side’sarguments, the current lawsuitis likely tocontinueto furtherdelay Puerto Rico’s transition to renewable energy. What is more, pushback from activists may continue via more legalbattles,protests,andchallengestoregulatoryoversightinPuertoRicorelatedtotheterritory’sland usepolicy.Fortheirpart,governmentofficialsanddevelopersalikecouldbetteraddressthe legitimate concerns of activists by communicating directly with them and accounting for their concerns during the development of utility-scale projects. So far though, it remains unclear whether developers and privateinvestorsareinvestingincommunityengagementefforts,whichwouldlikelyreducepushback totheseprojects.
Puerto Rico has set an ambitious and inspiring goalin committing to achieve 100 percent renewable energyby2050.Althoughtheterritoryisstillatthebeginningofthistransition,thetechnical,economic, and political steps that must be taken are increasingly clear. It is also evident that stakeholders across PuertoRico,includingnonprofitcommunityorganizations,theenergyauthorities,andprivateactors, are committed to this effort. This report has sought to complement existing work by examining the opportunities, barriers and solutions to financing the expansion of renewable energy on the island. GiventhelikelyimportanceoffederalsupportforPuertoRico’stransition,thisreporthasfocusedon thesourcesoffundingavailablefromthefederalgovernmentandhowactorsinPuertoRicocanaccess thesesourcesmosteffectively.Thereporthasalsoprovidedpolicyrecommendationstoaddressbroader challengestofinancingthedeploymentofrenewableenergyatthescaleandpacerequiredtoachievethe territory’sgoals.Inthiswork,itiscrucialthatallstakeholdersworktogetherinacoordinatedwaytoward asharedvisionforPuertoRico’senergytransition.
Thereisnowanunprecedentedamountofpoliticalandfinancialsupportfromthefederalgovernment for the expansion of renewable energy in Puerto Rico. Alongside resources from stakeholders within Puerto Rico, federal programs and sources of funding will fill many of the investment gaps that currentlyexist.Atthesametime,thisreportalsorecognizestheneedforamorerobustapproachtothe transition: federal funding alone cannot address the delays, disruptions and lack of coordination that havesofarlefttheterritorywithlimitedrenewableenergycapacity.
Someoftherecommendationspresentedherearestructuralinnature,withsuchchangestakingtimeto reapthedesiredoutcomes.Otherrecommendationsarepolitical,andSecretaryGranholmhasaunique opportunity to advocate on behalf of the energy transition in ways that will serve Puerto Rico in the near term. We believe that implementing this report’s recommendations will unlock accelerated progresstowardajustandsustainableenergytransition,transformingtheterritoryintoagreenenergy leaderwithintheUnitedStates.
ACEEE
AmericanCouncilforanEnergy-EfficientEconomy Act17
BRIC
ThePuertoRicoEnergyPublicPolicyAct
BuildingResilientInfrastructureCommunitiesGrantProgram
CBO Community-basedNon-profitOrganization
CCAP ComprehensiveClimateActionPlan
CCIA
CDBG
CDBG-DR
CDBG-MIT
CEWRI
CFPB
CPRG
CleanCommunitiesInvestmentAccelerator
CommunityDevelopmentBlockGrantProgram
CommunityDevelopmentBlockGrantDisasterRecovery
CommunityDevelopmentBlockGrantMitigationFunding
CommunityEnergyandWaterResilienceInstallationsProgram
U.S.ConsumerFinancialProtectionBureau
ClimatePollutionReductionGrants
COR3 PuertoRicoCentralOfficeforRecovery,Reconstruction,andResiliency
DOE U.S.DepartmentofEnergy
EECBG
EnergyEfficiencyandConservationBlockGrant
EERE DepartmentofEnergyOfficeofEnergy EfficiencyandRenewableEnergy
EIR EnergyInvestmentReinvestment
EPA U.S.EnvironmentalProtectionAgency
FAASt FEMAAcceleratedAwardsStrategy
FEMA FederalEmergencyManagementAdministration
FMA FloodMitigationAssistance
FOA
FOMB
FundingOpportunityAnnouncements
FinancialOversightandManagementBoardforPuertoRico
FY FiscalYear
GDO DepartmentofEnergy’sGridDeploymentOffice
GGRF GreenhouseGasReductionFund
GRIP
GridResilienceandInnovationPartnerships
HMGP
HazardMitigationGrantProgram
HUD U.S.DepartmentofHousingandUrbanDevelopment
HVAC heating,ventilation,andairconditioning
IIJA Infrastructure,Investment,andJobsAct
IRA InflationReductionAct
IRP IntegratedResourcePlan
IRS U.S.InternalRevenueService
ITC InvestmentTaxCredit
LEAP CommunitiesLocalEnergyActionProgram
LPO LoanProgramOffice
LUMA LUMAEnergy
MSA MetropolitanStatisticalArea
NCIF
NationalCleanInvestmentFund
NewERA EmpoweringRuralAmerica
NOI NoticeofIntent
OCED DepartmentofEnergy’sOfficeofCleanEnergyDemonstrations
PACE PoweringAffordableCleanEnergyProgram
PCAP PriorityClimateActionPlan
PPOA PowerPurchaseandOperatingAgreement
PR PuertoRico
PREB PuertoRicoEnergyBureau
PREPA PuertoRicoElectricPowerAuthority
PR-DNER PuertoRicoDepartmentofNaturalandEnvironmentalResources
PR-ERF PuertoRicoEnergyResilienceFund
PTC ProductionTaxCredit
PW ProjectWorksheet
REAP RuralEnergyforAmerica
REIC RenewableEnergyInstallationCompany
RFA RequestforAdvance
RFP RequestforProposal
RFR RequestforReimbursement
RLF RevolvingLoanFund
R3 HomeRepair,ReconstructionorRelocationProgram
SCEP DepartmentofEnergy’sOfficeofStateandCommunityEnergyPrograms
SEP DepartmentofEnergy'sStateEnergyProgram
TPO Third-partyowners
Treasury U.S.DepartmentoftheTreasury
TSED TransmissionSitingandEconomicDevelopmentGrantsProgram
USDA US.DepartmentofAgriculture
WCA WorkingCapitalAdvances
WEMSE WholesaleElectricityMarketStudiesandEngagementProgram
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73 FinancialOversightandManagementBoard.“Statement:RenewablePPOAAmendedContracts.”September14,2023. https://drive.google.com/file/d/1QDsWzY0d6Jyr-a-PNykiZfPpuIhiDaGE/view
74 PuertoRicoEnergyBureau.“ResolutionandOrder:AppointmentofTranche2IndependentCoordinator.”January 27,2022.https://energia.pr.gov/wp-content/uploads/sites/7/2022/01/20220127-MI20200012-Resolution-andOrder.pdf
75 AccionGroup.“CurrentAccionGroupEngagements.”AccessedNovember26,2023. https://acciongroup.com/current-projects/.
76 FinancialOversightandManagementBoard.“2023CertifiedFiscalPlanforthePuertoRicoElectricPowerAuthority.” June23,2023.https://oversightboard.pr.gov/fiscal-plans-2/
77 DepartmentofEnergy.“NoticetoApplicantsonLPODeterminationofEligibilityforPuertoRicoProjectsApplying UndertheEnergyInfrastructureReinvestment(EIR)Program.”DOELoanProgramOffice.July21,2023. https://www.energy.gov/lpo/articles/notice-applicants-lpo-determination-eligibility-puerto-rico-projectsapplying-under
78 PuertoRicoEnergyBureau.“InformativeMotionRegardingUpdateonLUMAInterconnectionStudiesPolicy Change,AmendmenttoClosingDate,T1ProjectPermittingProcessandRequestforOrderDirectingLUMA toTakeSpecifiedActionstoMinimizeFurtherDelays.”February28,2023.https://energia.pr.gov/wpcontent/uploads/sites/7/2023/02/20230228-Informative-Motion-Regarding-Update-on-LUMAInterconnection-Studies-Policy-Change-Amendment-to-Closing-Date-T1-Project-Permitting-Process-andRequest-for-Order-Directing-LUMA.pdf.
79 PuertoRicoEnergyBureauandAccionGroup.“PREBRFPHomePage.”AccessedNovember26,2023. https://prebrfp.accionpower.com
80 OECD.“RecommendationoftheCouncilonPublicProcurement.”2015.https://www.oecd.org/gov/publicprocurement/OECD-Recommendation-on-Public-Procurement.pdf.
81 OECD.“RecommendationoftheCouncilonPublicProcurement.”2015.https://www.oecd.org/gov/publicprocurement/OECD-Recommendation-on-Public-Procurement.pdf
82VinaySharmaandFelipeGoya.“Re-bootingpublicprocurementtorevitalizethe'socialcontract'ofgovernance.”World Bank.June7,2021.https://blogs.worldbank.org/governance/re-booting-public-procurement-revitalize-socialcontract-governance.
83 “AsGridDecarbonizes,EnergyEfficiencyMoreCriticalthanEvertoReduceCosts|ACEEE.”n.d.AccessedNovember 25,2023.https://www.aceee.org/press-release/2023/06/grid-decarbonizes-energy-efficiency-more-critical-everreduce-costs
84“PuertoRicoEnergyPublicPolicyAct.”2019.https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/2ingles/17-2019.pdf
85 PuertoRicoEnergyBureau.2022.“RegulationforEnergyEfficiency.”March25,2022.https://energia.pr.gov/wpcontent/uploads/sites/7/2022/04/Reglamento-9367-Regulation-for-Energy-Efficiency.pdf
86 Ibid,pg.19.
87 “FederalIncomeTaxCreditsandIncentivesforEnergyEfficiency.”EnergyStar,2022. https://www.energystar.gov/about/federal_tax_credits.
88 “StateandCommunityEnergyProgramsProjectMap–PuertoRico.”n.d.DepartmentofEnergy.AccessedDecember 2,2023.https://www.energy.gov/scep/articles/state-and-community-energy-programs-project-map-puerto-rico
89 Sud,Rayan,andSanjayPatnaik.2022.“HowDoesPermittingforCleanEnergyInfrastructureWork?”Brookings. https://www.brookings.edu/articles/how-does-permitting-for-clean-energy-infrastructure-work/.
90 Ricketts,Sam,ChrisBast,andHannahArgento-McCurdy.2023.“ImplementingAmerica’sCleanEnergyFuture.” CenterforAmericanProgress(blog).September14,2023. https://www.americanprogress.org/article/implementing-americas-clean-energy-future/
91 Bozuwa,Johanna,andDustinMulvaney.n.d.“AProgressiveTakeonPermittingReform:PrinciplesandPoliciesto UnleashaFaster,MoreEquitableGreenTransition.”RooseveltInstitute.AccessedNovember25,2023. https://rooseveltinstitute.org/publications/a-progressive-take-on-permitting-reform/
92 “NewYorkStateAnnouncesPassageofAcceleratedRenewableEnergyGrowthandCommunityBenefitActasPartof 2020-2021EnactedStateBudget.”n.d.NYSERDA.AccessedNovember25,2023. https://www.nyserda.ny.gov/About/Newsroom/2020-Announcements/2020-04-03-NEW-YORK-STATEANNOUNCES-PASSAGE-OF-ACCELERATED-RENEWABLE-ENERGY-GROWTH-ANDCOMMUNITY-BENEFIT-ACT-AS-PART-OF-2020-2021-ENACTED-STATE-BUDGET
93 Granholm,Ryan,AmyAntoniolli,andJaneMontgomery.2023.“IllinoisStandardizesPermitLawsForSolarandWind EnergyFacilities.”January30,2023. https://www.natlawreview.com/article/illinois-enacts-new-law-tostandardize-local-permitting-renewable-energy-facilities
94 Malaiyandi–,Sangeetha.2023.“FinancialStrugglesinPuertoRicoBiteDeeperthantheRestoftheUnitedStates.” ConsumerFinancialProtectionBureau.July27,2023.https://www.consumerfinance.gov/aboutus/blog/financial-struggles-in-puerto-rico-bite-deeper-than-the-rest-of-the-united-states/
95 Coto,Danica.“EnvironmentalistsSuePuertoRicanGovernmentoverLocationofRenewableEnergyProjects.”AP News,14Aug.2023,apnews.com/article/puerto-rico-lawsuit-renewable-energy-projectsa8ff7b663d708227e84a43afde2cb612.
96 JuntadePlanificación.PlanDeUsoDeTerrenos,GuíasDeOrdenaciónDelTerritorio;PuertoRicoPlanning Board:SanJuan,PuertoRico,2015;p.220.
97 Santiago,Ruth,etal.“TheDevastatingCostsofPuertoRico’sSolar‘Farms.’”NACLA,17Feb.2022,nacla.org/puerto-
98 UnitedStatesDepartmentofAgriculture.2020.“2017CensusofAgriculture,PuertoRico(2018)IslandandRegional Data.”AC-17-A-52. https://www.nass.usda.gov/Publications/AgCensus/2017/Full_Report/Outlying_Areas/Puerto_Rico/prv1.pdf
99 Rodríguez-Cruz,LuisAlexis,MayaMoore,andMeredithT.Niles.2021.“PuertoRicanFarmers’ObstaclesToward RecoveryandAdaptationStrategiesAfterHurricaneMaria:AMixed-MethodsApproachtoUnderstanding AdaptiveCapacity.”FrontiersinSustainableFoodSystems5. https://www.frontiersin.org/articles/10.3389/fsufs.2021.662918.
FinancingPuertoRico’sRenewableEnergyTransition: FundingDatabase
ACEEE
Act17
BRIC
CBO
CCAP
CCIA
CDBG
CDBG-DR
CDBG-MIT
CEWRI
CFPB
CPRG
COR3
DOE
EECBG
EERE
EIR
EPA
FAASt
FEMA
FMA
AmericanCouncilforanEnergy-Efficient Economy
ThePuertoRicoEnergyPublicPolicyAct
BuildingResilientInfrastructureCommunities GrantProgram
Community-basedNon-profitOrganization
ComprehensiveClimateActionPlan
CleanCommunitiesInvestmentAccelerator
CommunityDevelopmentBlockGrantProgram
CommunityDevelopmentBlockGrantDisaster Recovery
CommunityDevelopmentBlockGrant MitigationFunding
CommunityEnergyandWaterResilience InstallationsProgram
U.S.ConsumerFinancialProtectionBureau
ClimatePollutionReductionGrants
PuertoRicoCentralOfficeforRecovery, Reconstruction,andResiliency
U.S.DepartmentofEnergy
EnergyEfficiencyandConservationBlock Grant
DepartmentofEnergyOfficeofEnergy EfficiencyandRenewableEnergy
EnergyInvestmentReinvestment
U.S.EnvironmentalProtectionAgency
FEMAAcceleratedAwardsStrategy
FederalEmergencyManagementAdministration
FloodMitigationAssistance
FOA
FOMB
FundingOpportunityAnnouncements
FinancialOversightandManagementBoardfor PuertoRico
FY FiscalYear
GDO
DepartmentofEnergy’sGridDeploymentOffice
GGRF GreenhouseGasReductionFund
GRIP
GridResilienceandInnovationPartnerships
HMGP HazardMitigationGrantProgram
HUD U.S.DepartmentofHousingandUrban Development
HVAC heating,ventilation,andairconditioning
IIJA
Infrastructure,Investment,andJobsAct
IRA InflationReductionAct
IRP
IntegratedResourcePlan
IRS U.S.InternalRevenueService
ITC InvestmentTaxCredit
LEAP
CommunitiesLocalEnergyActionProgram
LPO LoanProgramOffice
LUMA LUMAEnergy
MSA MetropolitanStatisticalArea
NCIF NationalCleanInvestmentFund
NewERA EmpoweringRuralAmerica
NOI NoticeofIntent
OCED
PACE
DepartmentofEnergy’sOfficeofCleanEnergy Demonstrations
PoweringAffordableCleanEnergyProgram
PCAP PriorityClimateActionPlan
PPOA
PowerPurchaseandOperatingAgreement
PR PuertoRico
PREB PuertoRicoEnergyBureau
PREPA
PR-DNER
PR-ERF
PuertoRicoElectricPowerAuthority
PuertoRicoDepartmentofNaturaland EnvironmentalResources
PuertoRicoEnergyResilienceFund
PTC ProductionTaxCredit
PW ProjectWorksheet
REAP RuralEnergyforAmerica
REIC
RFA
RFP
RFR
RenewableEnergyInstallationCompany
RequestforAdvance
RequestforProposal
RequestforReimbursement
RLF RevolvingLoanFund
R3
SCEP
SEP
HomeRepair,ReconstructionorRelocation Program
DepartmentofEnergy’sOfficeofStateand CommunityEnergyPrograms
DepartmentofEnergy'sStateEnergyProgram
TPO Third-partyowners
Treasury U.S.DepartmentoftheTreasury
TSED
USDA
TransmissionSitingandEconomicDevelopment GrantsProgram
US.DepartmentofAgriculture
WCA WorkingCapitalAdvances
WEMSE
WholesaleElectricityMarketStudiesand EngagementProgram
Inthefollowingsection,wepresentkeyfederalfundingsourcesfortheenergytransitionthatentitiesin PuertoRicomaybeeligibletoapplyfor.Toassiststakeholdersinfindingsourcesforwhichtheymay qualify,wehavetaggedthepagesoftheFundingDatabasewithsymbolsasoutlinedbelow.
✢ Electricutilityproviders;Regulatorybodies(e.g.PREB,PREPA,LUMA,GeneraPR)
✩ NGOs;Nonprofits;Communityorganizations
✺ PuertoRicanhomeownersorprivatecitizens
✧ Privatebusinesses
✿ PuertoRicoGreenEnergyTrust
◎ Stateorlocalmunicipalgovernments
⧫ Independentpowerproducersandprojectdevelopers
⇹ Co-ops
PuertoRicoEnergyResilienceFund
FundNameandLink
RelevantTags
PuertoRicoEnergyResilienceFund
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2023
Governingact/bill(ifapplicable) FY2023ConsolidatedAppropriationsAct
Briefcontextoncreation
Amountallocated
AfterHurricaneFiona,thePR-ERFwaslaunchedin2023tosupport PuertoRico’sgridresilienceeffortsanditstransitionto100% renewableenergyby2050.ThefirstwaveofPR-ERFfunding(upto $450million)aimstosupporttheinstallationofresidentialsolarand batterysystemsin30,000–40,000verylow-income,single-family households.PR-ERFalsoincludesfundingtofurtherintakeprocessing (SolarAmbassadorPrize)andtosupporteducation,training,and consumerprotection.1
$1billion
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Recipientsmustsupportthefollowingtopicareas:
● TopicArea1:Third-PartyResidentialDeployment(Rooftop SolarPVandBatteryStorage)
● TopicArea2:Community-SponsoredResidentialRooftop Deployment
● TopicArea3:BeneficiaryEducation,Training,and
1 “PuertoRicoEnergyResilienceFund.”Energy.gov,n.d.https://www.energy.gov/gdo/puerto-rico-energy-resiliencefund
ConsumerProtection2
Exampleofpreviousrecipients Forthefirstwaveoffunding($450million),theDOEselected:
● ThreecompaniesunderTopicArea1toenteraward negotiationsforupto$400million:GeneracPowerSystems, Inc.,SunnovaEnergyCorporation,andSunrun,Inc.
● FivenonprofitsandcooperativesunderTopicArea2toenter awardnegotiationsforupto$40million:BarrioEléctrico, ComunidadSolarToroNegro,Inc.,EnvironmentalDefense Fund,Let'sSharetheSunFoundation,andSolarUnited Neighbors,Inc.
● TwoorganizationsunderTopicArea3toreceive$10million foreducation,training,andconsumerprotection(Hispanic FederationInc.andtheInstituteforBuildingTechnology andSafety)andsixteencommunityorganizationstoreceive fundingunderthe$3.85millionSolarAmbassadorPrizeto supportintakeprocessing.3
Currentstatus(open,reviewing,closed) Closed.Recipientsforthefirstwaveoffunding($450million)have beenannounced.Installationsareexpectedtobegininearly2024.4
Upcomingkeydates(ifapplicable) (Expected)2024 GDOreleasesFundingOpportunity AnnouncementforthesecondwaveofPR-ERFfunding.
Potentialrelevantparties Applicantsinclude:
● “Privateindustry,educationalinstitutions,stateandlocal governmentalentities,non-profitorganizations,andenergy cooperatives.”5
● Beneficiariesareverylow-income,single-familyhouseholds.
Recommendationsforutilizingfunds N/A
2 “FrequentlyAskedQuestionsonthePuertoRicoEnergyResilienceFund2023FundingOpportunityAnnouncement.” Energy.gov,n.d.https://www.energy.gov/gdo/frequently-asked-questions-puerto-rico-energy-resilience-fund2023-funding-opportunity
3 “DOEAnnouncesOver$13MilliontoConnectMorePuertoRicoCommunitieswithResidentialSolarandBattery Storage.”Energy.gov,November29,2023.https://www.energy.gov/articles/doe-announces-over-13-millionconnect-more-puerto-rico-communities-residential-solar-and.
4 “FrequentlyAskedQuestionsonthePuertoRicoEnergyResilienceFund2023FundingOpportunityAnnouncement.” Energy.gov,n.d.https://www.energy.gov/gdo/frequently-asked-questions-puerto-rico-energy-resilience-fund2023-funding-opportunity
5 “PuertoRicoEnergyResilienceFund.”Energy.gov,n.d.https://www.energy.gov/gdo/puerto-rico-energy-resiliencefund
FundNameandLink
WholesaleElectricityMarketStudiesandEngagementProgram
RelevantTags ✢, ◎
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2023
Governingact/bill(ifapplicable) ConsolidatedAppropriationsAct,2023
Briefcontextoncreation WEMSE“providesstatesandregionswithtechnicalandfinancial assistancerelatedtodeveloping,expanding,andimprovingwholesale electricitymarkets.”6
Amountallocated
$9million
Typeoffinancing(grant,loan,etc.) Grant
Yearestablished 2023
Eligibilityrequirements
Recipientsmust:
● Supportstatesandregionalsystemoperatorsinconducting analyticalstudiesandinterregionaltransmissionplanning.
● “Activitiesunderthisprogramcouldincludeperforming analyticalstudiesoncriticalmarketissues,convening stakeholders,orincreasingastateorregion’scapacityto engageinmarketdesignreformeffortsandstakeholder planningprocessesataregionallevel.”7
Exampleofpreviousrecipients N/A
6 “WholesaleElectricityMarketStudiesandEngagementProgram.”Energy.gov,n.d. https://www.energy.gov/gdo/wholesale-electricity-market-studies-and-engagement-program
7 “WholesaleElectricityMarketStudiesandEngagementProgram.”Energy.gov,n.d. https://www.energy.gov/gdo/wholesale-electricity-market-studies-and-engagement-program
Currentstatus(open,reviewing,closed) Closed.
Upcomingkeydates(ifapplicable) WEMSEwillincludethreeroundsoffunding.8
Potentialrelevantparties
● Stateenergyagency(PuertoRicoDepartmentofEconomic DevelopmentandCommerce,EnergyPolicyProgram)
● Systemoperators(e.g.PREB,PREPA,LUMA,GeneraPR).
Recommendationsforutilizingfunds Ensureapplicationsaresubmittedforsecondandthirdroundsof WEMSEfunding.
8 “WholesaleElectricityMarketStudiesandEngagementProgram.”Energy.gov,n.d. https://www.energy.gov/gdo/wholesale-electricity-market-stIntroduction
FundNameandLink TransmissionSitingandEconomicDevelopmentGrantsProgram
RelevantTags ✢, ◎
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2023
Governingact/bill(ifapplicable) IRA(Provision50152)
Briefcontextoncreation
Amountallocated
ThegoalofTSEDistoaccelerateandstrengthenelectrictransmission sitingandpermittingprocesses.AdministeredbyDOE'sGDO,the TSEDgrantprogramisanewinitiativedesignedtoovercomestateand localchallengestoexpandingtransmissioncapacitywhilealso supportingcommunitiesalongmajornewandupgradedlines.
$300million
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
● Forsitingandpermittingactivities:sitingauthorities,defined asTribal,state,orlocalgovernmentalentitieswiththe authoritytomakeafinaldeterminationregardingthesiting, permitting,orregulatorystatusofa“coveredtransmission project.”
● Foreconomicdevelopmentactivities:sitingauthoritiesorany Tribal,state,orlocalgovernmententityproposingto undertakeaprojectinacommunityimpactedbythe constructionoroperationofa“coveredtransmission project”.
Exampleofpreviousrecipients N/A
Currentstatus(open,reviewing,closed) Open.
Upcomingkeydates(ifapplicable) Round1
● ConceptPaperDeadline:November17,2024
● FullApplicationDeadline:April2024
● SelectionNotification:Summer2024
Potentialrelevantparties LUMA.
Recommendationsforutilizingfunds LUMAgovernmentaffairsshouldhavealreadysubmittedaproposal forthesegrantsandencouragedlocalgovernmentpartnerstoalsodip intothispotofmoney.
GridResilienceStateandTribalFormulaGrants
FundNameandLink GridResilienceStateandTribalFormulaGrantProgram
RelevantTags ⧫, ✢, ◎
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2021
Governingact/bill(ifapplicable) IIJA(Section40101(d))
Briefcontextoncreation
Amountallocated
Thisgrantprogramisdesignedtostrengthenandmodernizethepower gridtoincreaseitsresiliencetoextremeweatherandnaturaldisasters thatareexacerbatedbyclimatechange.9
$2.3billion
Typeoffinancing(grant,loan,etc.) Grant.
Eligibilityrequirements
● AllStates,territoriesandIndiantribesareeligibletoapply.
● Applicantsmustsubmitaplanthatdescribestheintended projectsub-recipients,thedistributionofthefundingandthe criteriathatwillbeusedforselection.
● Typicalsub-recipientsareentitiesintheelectricitysystem, includinggridoperators,generatorsandtransmissionowners.
● Allowableprojectsmustprovideresiliencybenefitstothe existinggrid,ratherthannewgenerationcapacity.10 Thesize ofgrantsisbasedonaformulathatincorporatespopulation, landarea,theprobabilityandseverityofpastdisruptive eventsandhistoricalexpenditureonmitigationefforts.
9 DepartmentofEnergy.“GridResilienceStateandTribalFormulaGrantProgram.”DoEGridDeploymentOffice.2023. AccessedNovember24,2023.https://www.energy.gov/gdo/grid-resilience-statetribal-formula-grant-program.
10 DepartmentofEnergy.“FrequentlyAskedQuestions:GridResilienceFormulaGrantstoStatesandIndianTribesIIJA Section40101(d).”June21,2023.AccessedNovember24,2023.https://netl.doe.gov/sites/default/files/202306/40101d%20Frequently%20Asked%20Questions%20Updated%20ALRD%207.pdf
● Statesandterritoriesmustalsomatch15%oftheamount awardedunderthegrant.11
Exampleofpreviousrecipients Todate,48states,49tribalentitiesandthreeterritorieshavebeen awardedgrants.12 Governmententitiesarenowexpectedtohold competitiveprocessestoselectprojects.
Currentstatus(open,reviewing,closed) Closed.
Upcomingkeydates(ifapplicable) Applicationdeadlinesforfuturefiscalyearsafter2023willbe announced.
Potentialrelevantparties
● InJuly2023,thePuertoRicoCentralOfficefor Recovery,Reconstruction,andResiliencywasawarded a$7.4milliongrantforincreasingaccesstocosteffectiveandresilientelectricityinvulnerable communities.13,14 Whilespecificprojectrequirementshave notbeenpublished,entitiesalreadyprovidingelectricity servicestoruralandremotecommunitieswillbewellplaced toseekthisfunding.ThiscouldincludeLUMAorGenera PR.Importantly,projectsreceivingfundingthroughthe USDAPACEorNewERAprogramscanalsoreceivethis funding.
Recommendationsforutilizingfunds ThePuertoRicoCentralOfficeforRecoveryandReconstruction shoulddefineaclear,publictimelineforcompetitivelyselecting projectsandawardingthefundingassoonaspossible.
11 DepartmentofEnergy.“FrequentlyAskedQuestions:GridResilienceFormulaGrantstoStatesandIndianTribesIIJA Section40101(d).”
12 DepartmentofEnergy.“GridResilienceStateandTribalFormulaGrantAwards.”DoEGridDeploymentOffice. September2023.AccessedNovember24,2023.https://www.energy.gov/gdo/grid-resilience-state-and-tribalformula-grant-awards.
13 DepartmentofEnergy.“FactSheet-GridResilienceStateandTribalFormulaGrants:PuertoRico.”2023.Accessed November24,2023.https://www.energy.gov/sites/default/files/202309/082123_Grid%20Resilience%20State%20and%20Tribal%20Formula%20Grants%20Fact%20Sheet_Puerto%2 0Rico%20English.pdf.
14 DepartmentofEnergy.“Biden-HarrisAdministrationInvestsOver$7MilliontoImprovetheResilienceofPuerto Rico’sElectricGrid.”July31,2023.AccessedNovember24,2023. https://www.energy.gov/articles/bidenharris-administration-invests-over-7-million-improve-resilience-puerto-ricos
DOETransmissionFacilityFinancingSite
FundNameand Link
DOETransmissionFacilityFinancingSite
RelevantTags ✢
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2022
Governingact/bill(ifapplicable) InflationReductionAct
Briefcontextoncreation
Section50151oftheIRAprovided$2billioninfundingtosupport DOEGDO’sdirectloanauthorityforfacilityfinancing.Loanswill supportmodificationofexistingfacilitiesandconstructionofnew ones.15 InPuertoRico,thisloanauthorityallowsGDOtosupport LUMA’seffortstorevitalizeandstrengthentransmissiontechnology.
Amountallocated $2billion
Typeoffinancing(grant,loan,etc.) Loan
Eligibilityrequirements
● Loansareavailabletonon-federalborrowersandmaynot exceed80%ofthetotalcostoftheprojectandandhavea termnotexceeding90%ofthefacilitiesprojectedusefullife or30years(whicheverisshorter). 16
● However,anentitymaynotreceiveTransmissionFacility FinancingunderIRAsection50151ifitisreceivinggrantsor otherFederalsupport,suchasfundingunderIIJAsections 40101,40103(b)40107,ortheTransmissionFacilitation
15 TheU.S.DepartmentofEnergy,GridDeploymentOffice.“TransmissionFacilityFinancing.”Energy.gov.Accessed November27,2023.https://www.energy.gov/gdo/transmission-facility-financing.
16 IRATracker.“IraSection50151-TransmissionFacilityFinancing.”InflationReductionActTracker,March2,2023. https://iratracker.org/programs/ira-section-50151-transmission-facility-financing/.
Programfunding.17
Exampleofpreviousrecipients Notyetannounced.
Currentstatus(open,reviewing,closed) Thisprogramisunderdevelopment;anticipateapplication announcements.
Upcomingkeydates(ifapplicable) ThefundswillremainavailablethroughSeptember30,2030.DOE willnotenterloanagreementsthatcouldresultindisbursementsafter September30,2031.
Potentialrelevantparties LUMA
Recommendationsforutilizingfunds EligibleorganizationsshouldmonitorRFPsandcallsforapplication, assumingtheyareeligibleandhavenotreceivedotherTFPfunding.
17 TheU.S.DepartmentofEnergy,GridDeploymentOffice.“Grid&TransmissionProgramsConductorGuideDepartmentofEnergy.”Grid&TransmissionProgramsConductorGuide,p14,September15,2022. https://www.energy.gov/sites/default/files/202210/FINAL_GDO_Grid%20and%20Transmission%20Program%20Guide_091522%5B19%5D.pdf.
FundNameandLink
TransmissionFacilitationProgram
RelevantTags ✢,⧫
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2023
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
ArevolvingfundprogramthatusesFederalfundingtobuild,upgrade, andexpandlarge-scaleinterregionaltransmissionlinesandconnection ofmicrogridsacrosstheUnitedStates.Relatestothecleanenergy transitionbecausetransmissioncapacityiscrucialforachievingthe deploymentofcleanenergy.Theprogramprioritizesprojectsthatmeet certainobjectives,includingcontributionstolowerelectricityGSG emissions.
$2.5billion
Threetools:
● CapacitycontractwhereDoEis“anchortenant”andagrees topurchase50%ofplannedlineratingforupto40yearsand sellthecontracttorecovercosts
● Loans
● PPswithinnationalinterestelectrictransmissioncorridors.
Eligibilityrequirements
● Entitymustcarryoutaprojectthatconstructs,replaces,or upgradestransmissionlinecapableofnotlessthan(1)1,000 MWor(2)forupgradingornewtransmissionconnectedto existinginfrastructure,includingmicrogridconnection,not lessthan500MW.
Exampleofpreviousrecipients Asof2023,DoEisincapacitycontractnegotiationswiththree projects:
● SouthlineTransmissionProjects(Arizona,NewMexico)a 175-mile,748transmissionlinetounlockrenewableenergy anddelivercleanenergytogrowingmarketsinArizona.
● TheothertwoincludeCross-Tie500kVTransmissionLine Project(Nevada,Utah)andTwinStatesCleanEnergyLink (NewHampshire,Vermont).
Currentstatus(open,reviewing,closed) ThreeprojectswereselectedbasedonthefirstroundofRFPsin October2023.FutureRFPmaybeconductedbutdateshavenotbeen announcedasyet.
Upcomingkeydates(ifapplicable) N/A
Potentialrelevantparties LUMA
Recommendationsforutilizingfunds MonitorthestatusofRFPsandapplyaccordingly.
GridResilienceUtilityandIndustryGrants
FundNameandLink
GridResilienceUtilityandIndustryGrants
RelevantTags ✢,⧫
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2021
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation
Amountallocated
Thisprogramwillsupportupgrades/modernizationoftheelectricgrid –includingtransmissionanddistributioninfrastructure–so communitiesarebetterabletohandleextremeweathereventslike floods,wildfires,hurricanes,andmore.Inthisbucket,DOEwill prioritizeprojectsthatproducethegreatestcommunitybenefitby reducingtheharmcausedbysevereweatherandotherdisruptive events.
$2.5billion
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Exampleofpreviousrecipients
“Domesticentities,”including:
● Electricgrid/storageoperators,transmission owners/operators,distributionprovider,fuelsupplier,“any otherrelevantentity,asdeterminedbytheSecretary”.
● HawaiianElectricCompany,LLC–ClimateAdaptation ResilienceProgram
Currentstatus(open,reviewing,closed) Closed.
However,accordingtoDOE’sFAQ,“Theexacttimelinefor subsequentissuancesofthisFOAhavenotyetbeendetermined; atthistimeweanticipateissuinganannouncementduringthe approximatelyOctober–December,2023timeframe.”
Upcomingkeydates(ifapplicable)
WhileDOEhasnotreleasedasecondnoticeFundingOpportunity Announcement(FOA),thetimelineforthefirstallocationwas approximatelysixmonths(December2022–May2023.)
Potentialrelevantparties
Recommendationsforutilizingfunds
LUMAandPREPA
● PREPAandLUMAshouldbeonthelookoutfor upcomingannouncementsofasecondroundof funding.DOEwillmakefundingopportunity announcementspubliconlineandviaregular communications.
● LUMAmaybeabletoapplyFEMAfundstowardthe 100%costsharerequirementofthisprogram. Becauseof PuertoRico’suniquesituationregardinganinfluxoffederal funds,discusspossiblecostshareopportunitieswiththe pointofcontactfromDOE.
FundNameandLink
RelevantTags
SmartGridGrants
Agency DepartmentofEnergy
Office GridDeploymentOffice
Yearestablished 2021
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation
Amountallocated
Thesegrantsaremeanttofundprojectsthatincreasetheflexibilityand reliabilityoftheelectricsystem.Inparticular,theywillfocuson increasingcapacity,preventingfaults,integratingrenewableenergyat transmissionanddistributionlevels,andfacilitatingtheintegrationof EVsandefficientbuildings.
$3billion
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Exampleofpreviousrecipients
Eligibleentitiesinclude:
● Universities,forprofitentities,nonprofitentities,state/local governments,tribalnations.
● Notethislistexcludesmentionofterritories.
● Surry-YadkinElectricMembershipCorporation(SYEMC)–RuralFocusedResiliencyataSmall-ScaleElectricCo-op
Currentstatus(open,reviewing,closed) Closed.
Upcomingkeydates(ifapplicable) Thenextroundoffundingopensattheendof2023,per GRIPFact Sheet.
Potentialrelevantparties
● UniversityofPuertoRico
● EDFinCulebraorothernonprofits
● Forprofitswiththecapacitytoimplementlarge-scalegrid resiliencyprojects.
Recommendationsforutilizingfunds
● Interestedentitiesshouldbeonthelookoutfor upcomingannouncementsofasecondroundof funding.DOEwillmakeFOAspubliconlineandviaregular communications.
● MultipleentitiesinPuertoRico,includingUniversity ofPuertoRicoandcommunitysolarnonprofits,should applyasabloctoincreasechancesofbeingapprovedby DOE.UPRalreadyhasexistingresearchprojectsexploring microgridsandsolar,andmultiplenonprofitsontheisland alreadyoperateatthecommunitylevel.Toexpandthereach oftheseprojects,theseentitiesshouldcollaboratetoincrease thechanceofprojectselectionandprocuretherequiredcost share.
FundNameandLink GridInnovationProgram
RelevantTags ◎, ✢,
Agency DepartmentofEnergy()
Office GridDeploymentOffice
Yearestablished 2021
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation
Amountallocated
Thisprogramsupportsprojectsthatusetransmission,storage,and distributioninfrastructuretoincreasegridresilienceandreliability. Selectedprojectswillincludeinvestmentstoaccelerateinterconnection ofcleanenergygeneratorsanddistributionofbackuppower(storage). Approachesmayrangefrominnovativepartnershipstonewplanning processes.
$5billion
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Exampleofpreviousrecipients
Eligibleentitiesinclude”
● States,tribes,unitsoflocalgovernment,andpublicutility commissions.
● Notethislistexcludesmentionofterritories.
● Hawai`iStateEnergyOffice(HSEO)
● Hawai`iDepartmentofBusiness,EconomicDevelopment, andTourism–UtilitySolarGridFormingTechnology (USGFT)
Currentstatus(open,reviewing,closed) Closed.
Upcomingkeydates(ifapplicable) Thenextroundoffundingopensattheendof2023,per GRIPFact Sheet.
Potentialrelevantparties
Recommendationsforutilizingfunds
● PuertoRicogovernment
● Localgovernment
● Publicutilitycommissione.g.PREB
● PREBshoulddetermineitseligibilitytoapplyforthese funds.
● Ifitiseligible,andiscapableoffundingtherequiredcost match,multipleopportunitiesexisttoincreasethecapacityof PuertoRico’stransmissionanddistributionsystems,which areafirstorderconcernofratepayersandutilityoperators alike.
RenewAmerica’sSchools
FundNameandLink RenewAmerica’sSchools
RelevantTags ✩, ◎
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 2022
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation Promotecleanenergyimprovements(energyefficiency,renewable energy,alternativefueledvehicleupgradesatK-12schoolsacrossthe country,withafocusonhigh-needschools.
Amountallocated
$80million
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Exampleofpreviousrecipients
Eligibleprojectsinclude:
● Energyinfrastructureimprovementsthatreducebuilding operatingcosts likenewHVACandventilationsystems, buildingenvelopeandlightingprojects,andrenewableenergy technologies.
● Fundingisalsoavailableforalternative-fueledvehiclesand alternative-fueledvehicleinfrastructure.
● AlexandriaCityPublicSchools(Alexandria,VA)–replacing HVACboilers
● KaneCountySchoolDistrict(Kanab,UT)–replacingcoalfiredboilers.
Currentstatus(open,reviewing,closed) Closed.
Upcomingkeydates(ifapplicable) Spring2024:secondroundoffundingopensup.
Potentialrelevantparties ● K-12schoolsmakingcleanenergyupgradesinPR.
Recommendationsforutilizingfunds ● PuertoRicangovernmentornon-profitsshouldsupport schoolsystemsincheckingeligibilityandapplyingforthis funding.
America’sNonprofits
FundName RenewAmerica'sNonprofits
RelevantTags
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 2021
Governingact/bill(ifapplicable) IIJASection40502
Briefcontextoncreation
Amountallocated
OriginallypartoftheIIJA,theDOE’sRenewAmerica’sNonprofits Programaims“toreducecarbonemissions,improvehealthandsafety, andlowerutilitiescostsatbuildingsownedandoperatedby501(c)(3) nonprofits.”18
$50million
Typeoffinancing(grant,loan,etc.) CompetitiveGrant
Eligibilityrequirements
Exampleofpreviousrecipients
● Subrecipientsmustbenonprofit501(c)(3)organizationsthat ownandoperatetheirbuildingsandusesubawardsfor buildingenergyefficiencyimprovements.19
● Nineprimerecipientshavealreadybeenselected.
● SouthfaceEnergyInstituteisexpectedtopartnerwithPuerto Ricannonprofits.20
18 “RenewAmerica’sNonprofits.”Energy.gov,n.d.https://www.energy.gov/scep/renew-americas-nonprofits
19 “RenewAmerica’sNonprofits:At-A-Glance.”StateandCommunityEnergyPrograms,n.d. https://www.energy.gov/sites/default/files/2023-05/Renew%20America%27s%20Nonprofits%20FOA%20%20At%20a%20Glance_0.pdf.
20 “RenewAmerica’sNonprofits.”Energy.gov,n.d.https://www.energy.gov/scep/renew-americas-nonprofits
Currentstatus(open,reviewing,closed) Primerecipientsarecurrentlyidentifyingtheirnonprofitsubrecipients.
Upcomingkeydates(ifapplicable) Primerecipientswillsubmittheirportfolioofsubrecipientsand fundedprojectsbyapproximatelyJune2024.21
Potentialrelevantparties ● PuertoRican501(c)(3)nonprofitsaspotentialsubrecipients.
Recommendationsforutilizingfunds ● PuertoRican501(c)(3)nonprofitsshouldcontactSouthface EnergyInstitute(therelevantprimeawardee)assoonas possibletosubmitpitchesforrelevantsubrecipientprojects ofupto$200,000.
21 “RenewAmerica’sNonprofits.”Energy.gov,n.d.https://www.energy.gov/scep/renew-americas-nonprofits
FundName StateEnergyProgram
RelevantTags ◎
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 1975
Governingact/bill(ifapplicable) TheEnergyPolicyandConservationActof1975(P.L.94-163)
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
CongresscreatedSEPamidtheenergycrisisofthe1970stopromote energyefficiencyandrenewableenergyefforts.Today,“SEPprovides fundingandtechnicalassistancetostates,territories,andtheDistrictof Columbiatoenhanceenergysecurity,advancestate-ledenergy initiatives,andincreaseenergyaffordability.”22
$60million(FY23)23
AnnualFormulaGrant
Eligibilityrequirements
Exampleofpreviousrecipients
● StatessubmitanAnnualGrantApplicationwiththe minimumrequirementsestablishedbySEP’sfinalrulein 1997(10CFRPart420).
● “SEPprovidesannualfundingtofiftystates,theDistrictof Columbia,andthefiveU.S.territoriestosupporta nationwideinfrastructureofstateenergyoffices.Since2010, SEPhasprovidedstatesandterritorieswithmorethan$540 millioninfinancialassistance.”24
22 “AbouttheStateEnergyProgram.”Energy.gov,n.d.https://www.energy.gov/scep/about-state-energy-program
23 “StateEnergyProgramGuidance.”Energy.gov,n.d.https://www.energy.gov/scep/state-energy-program-guidance.
24 “AbouttheStateEnergyProgram.”Energy.gov,n.d.https://www.energy.gov/scep/about-state-energy-program
Currentstatus(open,reviewing,closed) Formulagrantwithannualfundingallocations.
Upcomingkeydates(ifapplicable) FY23ApplicationsClosed;FY24AdministrativeandLegal RequirementsDocumenttobeannouncedlikelyinearly2024.
Potentialrelevantparties ● PuertoRicoDepartmentofEconomicDevelopmentand Commerce,EnergyPolicyProgram
Recommendationsforutilizingfunds ● N/A
FundName EnergyEfficiencyandConservationBlockGrantProgram
RelevantTags
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 2007
Governingact/bill(ifapplicable) TitleV,SubtitleEoftheEnergyIndependenceandSecurityAct of2007
Briefcontextoncreation
Amountallocated
EECBGaims“toassiststates,localgovernments,andTribesin implementingstrategiestoreduceenergyuse,toreducefossilfuel emissions,andtoimproveenergyefficiency.”25
$550million(providedbytheIIJA(PublicLaw117-58),Sec.40552
Typeoffinancing(grant,loan,etc.) FormulaandCompetitiveGrants
Eligibilityrequirements
Exampleofpreviousrecipients
● Fifty-sixstatesandterritoriesareeligibleforformulagrants.
● 1,878localgovernmentsand774Indiantribesareeligiblefor formulagrantsandvouchers.26
● DOEprovidesafulllistofeligibleusesofEECBGfunds.
● InNovember2023,PuertoRicoreceivedaformulagrantof $1,855,570toestablish“aprogramtosubgrantfundsto ineligiblemunicipalitiestoinstallsolarstreetlightsin downtownareasandtoperformenergyaudits.Theprogram
25 “EnergyEfficiencyandConservationBlockGrantProgram.”Energy.gov,n.d.https://www.energy.gov/scep/energyefficiency-and-conservation-block-grant-program.
26 “EnergyEfficiencyandConservationBlockGrant(EECBG)ProgramFrequentlyAskedQuestions.”Energy.gov, October2023.https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-eecbg-programfrequently-asked-questions
willfurtheranisland-widestrategytoreduceenergyburden andincreasegridresiliency.”27
Currentstatus(open,reviewing,closed) DOEisawardingformulagrantstostatesandterritoriesfrom applicationsthatweredueonJuly31,2023.
Upcomingkeydates(ifapplicable) TheapplicationdeadlineforalllocalgovernmentsandTribestoapply forEECBGProgramformulafundingisApril30,2024.Thisappliesto directgrantandvoucherapplications.
Potentialrelevantparties
● PuertoRicoDepartmentofEconomicDevelopmentand Commerce,EnergyPolicyProgram
● Localgovernments
Recommendationsforutilizingfunds ● ForPuertoRicanlocalgovernmentauthorities,DOE especiallyencourageslocalgovernmentswhoseawardamount islessthan$250,000orwhohavelimitedstaffingcapacityto pursuethevoucheroption.“Voucherscanbeusedfor technicalassistanceand/orrebatesforthepurchaseand installationofenergyefficiencyorcleanenergyequipment.”28
27 “EnergyEfficiencyandConservationBlockGrantProgramAwards.”Energy.gov,n.d. https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-program-awards.
28 “EnergyEfficiencyandConservationBlockGrant(EECBG)ProgramFrequentlyAskedQuestions.”Energy.gov, October2023.https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-eecbg-programfrequently-asked-questions
FundName EnergyEfficiencyRevolvingLoanFundCapitalizationGrantProgram
RelevantTags
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 2021
Governingact/bill(ifapplicable) IIJASection40502
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
EstablishedundertheIIJA,theEnergyEfficiencyRLFCapitalization GrantProgram“isdesignedtoprovidecapitalizationgrantstoStatesto establishaRLFunderwhichthestateshallprovideloansandgrantsfor energyefficiencyaudits,upgrades,andretrofitstoincreaseenergy efficiencyandimprovethecomfortofbuildings.”29
$250million
FormulaGrant
Eligibilityrequirements
Exampleofpreviousrecipients
● FundingisgiventoStateseligibleundertheSEP.Statesmay thenawardloansandgrantstoeligibleindividuals,nonprofit organizations,orbusinesses.30
● DOEprovidesadditionalinformationontermsofeligibility.
● N/A
29 “EnergyEfficiencyRevolvingLoanFundCapitalizationGrantProgram.”Energy.gov,n.d. https://www.energy.gov/scep/energy-efficiency-revolving-loan-fund-capitalization-grant-program.
30 “EnergyEfficiencyRevolvingLoanFundCapitalizationGrantProgram.”Energy.gov,n.d. https://www.energy.gov/scep/articles/frequently-asked-questions-revolving-loan-fund-capitalization-grantprogram
Currentstatus(open,reviewing,closed) Applicationsunderreview;expectedannouncementlate2023
Upcomingkeydates(ifapplicable) Announcementofinitialawardsexpectedlate2023.Additionalfunds maybeavailable.
Potentialrelevantparties ● PuertoRicoDepartmentofEconomicDevelopmentand Commerce,EnergyPolicyProgram
Recommendationsforutilizingfunds ● Fundsmaybeusedforenergyefficiencyaudits,upgrades,and retrofitsaswellasthedeploymentofonsiterenewableenergy technology.
FundName
WeatherizationAssistanceProgram
RelevantTags ✺, ◎
Agency DepartmentofEnergy
Office OfficeofStateandCommunityEnergyPrograms
Yearestablished 1976,EnergyConservationandProductionAct
Governingact/bill(ifapplicable) TheIIJArecentlyprovidedanadditional$25milliontotheprogram throughtheWeatherizationAssistanceProgramEnhancementand Innovationsection.
Briefcontextoncreation
Amountallocated
TheEnergyConservationandProductionActof1976createdthe WeatherizationAssistanceProgramwiththestatedpurposeto “increasetheenergyefficiencyofdwellingsownedoroccupiedbylowincomepersons,reducetheirtotalresidentialexpenditures,and improvetheirhealthandsafety.”
$310million(FY21)
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
● Low-incomehouseholds,definedbyWAPasatorbelow200 percentofthepovertyline(thoughgranteesareabletouse othereligibilitymetrics).
Exampleofpreviousrecipients ● Low-incomehouseholds
Currentstatus(open,reviewing,closed) WAPfundingisallocatedeachyear;PuertoRicowasallocated$1.38 millioninFY2020,and$1.14millioninFY2021.
Upcomingkeydates(ifapplicable) N/A
Potentialrelevantparties
Recommendationsforutilizingfunds
● Low-incomePuertoRicansareeligibleforthesefunds throughPuertoRico’sStateOfficeofPublicEnergyPolicy.
● PREBandPREPAshouldupdateregulationsandstrategies forlocalenergyefficiencyprogramstoincludethe WeatherizationAssistanceProgram,aswellasotherfederal energyefficiencyprograms.CoordinatingwithPuertoRico’s StateOfficeofPublicEnergyPolicycanhelpamplifythe impactofthesefundsinPREPA’ssharedgoals.
FundName Title17CleanEnergyFinancing
RelevantTags
Agency DepartmentofEnergy
Office LoanProgramOffice
Yearestablished 2005
Governingact/bill(ifapplicable) 2005EnergyPolicyAct,reauthorizedandrevisedbysubsequent legislation,includingtheIIJA(2021)andtheIRA(2022).
Briefcontextoncreation
Amountallocated
TheTitle17CleanEnergyFinancingprogramisdesignedtoprovide accesstolong-termdebtforcleanenergyprojects.Acentralaimisto supportthedeploymentofinnovativecleanenergytechnologyand supplychainsonthepathtofullcommercialviabilityandmarket acceptance.31 Theprogramalsosupportsfinancingeffortsthrough stateenergyfinancinginstitutionslikegreenbanks.TheIRAaddedthe EIRauthoritytotheprogram,allowingfinancialsupportfor repurposingandreplacingenergyinfrastructure,especiallyinareas whereaginginfrastructureisaproblem.32
Intotal,theTitle17CleanEnergyFinancingprogramisauthorizedto guaranteeloansofmorethan$300billion.Loanguaranteesare providedonaproject-by-projectbasis,sothereisnofixedallocation.33
Typeoffinancing(grant,loan,etc.) Theprogramprovidesloanguaranteeswithlowinterestratesforupto thirtyyearstoachievelowerinterestratesondebtfromtheFederal FinancingBankandcommerciallenders.
31 DepartmentofEnergy.“Title17CleanEnergyFinancing.”2023.AccessedNovember24,2023. https://www.energy.gov/lpo/title-17-clean-energy-financing.
32 DepartmentofEnergy.“EnergyInfrastructureReinvestment.”2023.AccessedNovember24,2023. https://www.energy.gov/lpo/energy-infrastructure-reinvestment.
33 DepartmentofEnergy.“Title17CleanEnergyFinancing.”
Eligibilityrequirements
Exampleofpreviousrecipients
● Allprojectsmustachieveasignificantavoidance,reduction, utilization,orsequestrationofgreenhousegasorairpollution andusetechnicallyviableandcommerciallyready technology.
● Projectscannotalsobereceivingcertainotherformsof federalsupport,includinggrantsandotherloanguarantees, butenergyproductionandITCsarecompatible.34
● InnovativeEnergyandInnovativeSupplyChainprojects mustinvolvetheuseofinnovativetechnology.
● StateEnergyFinancingInstitutionprojectsdonotneedto utilizeinnovativetechnologybutmustbereceivingfinancial supportfromaStateagencyorfinancingauthority.
● EnergyInfrastructureReinvestmentprojectsmustinvolve retooling,repowering,repurposing,orreplacingenergy infrastructurethathasceasedoperationsand/orenable reductionsinairpollutantsoremissions.
● Intotal,twenty-sixfullorpartialloanguaranteeshavebeen allocated,worth$28.9billion.Projectshaveincluded:
○ Earlystagesolarfarms
○ Newwindturbinetechnology
○ Geothermalpower
○ Cleanhydrogen
○ Newbatterystoragesystems.35
Currentstatus(open,reviewing,closed) TheLPO’sTitle17CleanEnergyFinancingisopen.Applicationsare consideredonanindividual,rollingbasis.
Upcomingkeydates(ifapplicable) N/A
Potentialrelevantparties
● InnovativeEnergy:InSeptember2023,theDOE announceda$3billionpartialloanguaranteeforSunnova EnergyCorporation’sProjectHestia,whichwillincrease accesstoresidentialsolar,batterystorageandvirtualpower plant-readysoftwarefor75,000to115,000householdsacross theUnitedStates,includingPuertoRico.36
34 DepartmentofEnergy.“ProgramGuidanceforTitle17CleanEnergyFinancingProgram.”
35 DepartmentofEnergy.“LPOPortfolioProjects.”2023.AccessedNovember24,2023. https://www.energy.gov/lpo/portfolio-projects.
36 DepartmentofEnergy.“DOEAnnounces$3BillionPartialLoanGuaranteetoSunnova’sProjectHestia.”September 28,2023.AccessedNovember24,2023.https://www.energy.gov/lpo/articles/doe-announces-3-billion-partialloan-guarantee-sunnovas-project-hestia
Recommendationsforutilizingfunds
● EnergyInfrastructureReinvestment:TheLPOhas determinedthatrenewableenergyprojectsandbatteryenergy storagesystemsprocuredthroughPuertoRico’scentralized procurementplan(thetrancheprocess,ledbyPREB)are eligibletoapplyforTitle17loanguaranteesundertheEIR authority.37 Thisappliestoprojectsalreadycontractedunder Tranche1andprojectstobecontractedunderTranches2 and3.
● TomaximizetheimpactoftheDOE’sloanguarantee supportforPuertoRico’scentralizedprocurementofsolar powerandbatterystorage,PREBshouldurgentlyincreasethe paceandtransparencyofthisprocurement.Doingsowill boostcredibilityandmarketconfidence,therebyattracting strongerbidsforwhichDOEsupportthroughtheTitle17 programcanbeeffectivelyapplied.
● TheDoEshouldconsiderwaysitcanprovideadditional capacitysupporttoPREBtoacceleratethisprocesstoo.
● PuertoRico’sGreenEnergyTrustiseligibletoapplyfor supportthroughtheTitle17StateEnergyFinancial Institutionprogram.TheGreenEnergyTrustshould investigatewaystoleveragethisfederalsupportalongsidethe requiredsupportfromthePuertoRicangovernment.
37 DepartmentofEnergy.“NoticetoApplicantsonLPODeterminationofEligibilityforPuertoRicoProjectsApplying UndertheEnergyInfrastructureReinvestment(EIR)Program.”July21,2023.AccessedNovember24,2023. https://www.energy.gov/lpo/articles/notice-applicants-lpo-determination-eligibility-puerto-rico-projectsapplying-under
FundName EnergyImprovementsinRuralorRemoteAreasTechnicalAssistance
RelevantTags ✢, ◎,⧫,⇹
Agency DepartmentofEnergy
Office OfficeofCleanEnergyDemonstrations
Yearestablished 2023
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation
Amountallocated
Tohelpdeploycommunity-driven,cleanenergysolutionsinruraland remoteareasnationwide.TheERAprogramprovidesfinancial investment,technicalassistance,andotherresourcestoadvanceclean energydemonstrationsandenergysolutionsthatarereplicableand scalable.
$1billion
Typeoffinancing(grant,loan,etc.) Grant
Eligibilityrequirements
Exampleofpreviousrecipients
● Projectsmustdelivermeasurablebenefitstoenergycustomers inruralorremoteareasbyfundingreplicableenergyprojects thatlowerenergycosts,improveenergyaccessandresilience, and/orreduceenvironmentalharm.
● Projectsmustdemonstratenewruralorremoteenergysystem modelsusingclimate-resilienttechnologies,business structuresthatpromoteeconomicresilience,newfinancing mechanisms,and/ornewcommunityengagementbest practices.
● Projectsmustbuildcleanenergyknowledge,capacity,and self-reliancethroughoutruralAmerica.
● DOEprovidesafulllistofthesixty-sevenwinnersofPhase OneoftheEnergizingRuralCommunitiesPrize.
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable) N/A
Potentialrelevantparties
Recommendationsforutilizingfunds
● USDARuralDevelopment
● BarrioElectrico
● FosteringEnergyResilienceinPuertoRicoProject
● Fundingshouldbeusedforoneofthefollowingareas:
○ Overallcost-effectivenessofenergygeneration, transmission,ordistributionsystems;
○ Sitingorupgradingtransmissionanddistribution lines;
○ Reducinggreenhousegasemissionsfromenergy generationbyruralorremoteareas;
○ Providingormodernizingelectricgeneration facilities;
○ Developingmicrogrids;or
○ Increasingenergyefficiency.
FundName DistributedEnergySystemsDemonstrationsProgram
RelevantTags ✢, ◎,⧫,⇹
Agency DepartmentofEnergy
Office OfficeofCleanEnergyDemonstrations
Yearestablished 2023
Governingact/bill(ifapplicable) IIJA
Briefcontextoncreation Fundsdistributedenergysystemsdemonstratingfinancialand technicalapproachestodistributinglargeamountsofdistributed energyresourcestosupportcommunities.38
Amountallocated
$50million
Typeoffinancing(grant,loan,etc.) Awardwitharequiredminimum50percentnon-federalcost-share.39
Eligibilityrequirements
● Eligibleapplicantsincludemunicipal,cooperative,and investor-ownedutilitiesandfor-profitentitieswithan establishedportfolioofaggregateddistributedenergy resourcesundercontract.40
● Projectsfundedmustmeetthefollowingrequirements:
● Usingadistributiongridwithatleast20MWpeak load;
● Utilizingdistributedenergyresourceswithan aggregatedcapacityofatleast25percentofthegrid systempeakload;and
38 OfficeofCleanEnergyDemonstrations.2023.“FundingNotice:DistributedEnergySystemsDemonstrations Program.”U.S.DepartmentofEnergy.September26,2023.https://www.energy.gov/oced/funding-noticedistributed-energy-systems-demonstrations-program.
39 Ibid.
40 Ibid.
Exampleofpreviousrecipients
● Ensuringatleast50percentofdistributedenergy resourcesareinplaceand/orenrolledatthe applicationstage
● N/A
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable) December13,2023:conceptpapersdue April15,2024:submissiondeadlineforapplications
Note:onlyapplicantswhohavesubmittedaconceptpaperwillbe eligibletosubmitafullapplication.41
Potentialrelevantparties
Recommendationsforutilizingfunds
● Utilitiesandfor-profitsthatareworkingonDERsinPR.
● N/A
41 InteragencyWorkingGrouponCoalandPowerPlantCommunitiesandEconomicRevitalization.2023.“Distributed EnergySystemsDemonstrations.”U.S.DepartmentofEnergy.September26,2023. https://energycommunities.gov/funding-opportunity/distributed-energy-systems-demonstrations/.
FundName
RelevantTags
CleanEnergyInnovatorFellowship
Agency DepartmentofEnergy
Office OfficeofEnergyEfficiencyandRenewableEnergy
Yearestablished 2017
Briefcontextoncreation
Amountallocated
TheDOECleanEnergyInnovatorFellowshipprogramisaunique workforcedevelopmentprogramthatprovidesfellowswithon-the-job trainingandprofessionaldevelopmentopportunities.Atthesame time,theirhostsreceivesupporttoacceleratethetransitiontoclean electricityandimprovegridresiliency.Fellowssupportawiderangeof projectscoveringtopicsincludingcleanenergyintegration,expanding electricvehiclecharging,Tribalenergysovereignty,distribution-level gridservices,andgridresilienceandenergyplanninginPuertoRico. WhilePuertoRicohasalwaysbeeneligibleundertheprogram,ithas receivedspecialattentionandpriorityinthecurrentiteration.
Twenty-nineFellowships
Typeoffinancing(grant,loan,etc.) Fellowship
Eligibilityrequirements
ForHostOrganizations:
● ElectricpublicutilitycommissionsintheUnitedStatesand U.S.territories
● Electriccooperativesandmunicipalutilities
● PuertoRicanessentialenergyorganizations
● Tribalutilities
● Inter-tribalcouncilsandothertribalorganizations
● Gridoperators
EligiblehostinstitutionsinPuertoRicomayhostuptothree InnovatorFellows.In2023,hostinstitutionsinterestedinhosting
Exampleofpreviousrecipients
morethanonefellowhadtosubmitaseparateapplicationforeachand identifyauniqueprojectandmentorforeachfellow.
ForFellows:
● “Thefellowshipisopentorecentbachelor’sdegree,master’s degree,anddoctoralgraduatesandearlycareerprofessionals. Fellowshipcandidatesmustdemonstrateaninterestin renewableenergy,energyefficiency,and/orsustainable transportationtechnologyandpolicy;electricgridresilience andmodernization;PuertoRicogridrecoveryand modernization;andTribalenergyresilience.Fellowsserve one-yeartermsandcanrenewforasecondyear.Fellows receiveacompetitivestipendwithhealthbenefitsandan educationallowancetosupporttheirprofessional development.”
● In2023,thefollowingPuertoRicanentitieshostedfellows:
○ CooperativaHidroeléctricadelaMontaña
○ LUMA
Currentstatus(open,reviewing,closed) Closedfor2023
Upcomingkeydates(ifapplicable)
Potentialrelevantparties
FutureroundsoftheCleanEnergyInnovatorFellowshiparesubjectto Congressionalappropriationsandmayhaveanalteredprocess
Recommendationsforutilizingfunds
● Electricutilityregulator
● Utility,gridoperators
● Electriccooperatives
● N/A
FundName CommunitiesLocalEnergyActionProgram2.0
RelevantTags
Agency DepartmentofEnergy
Office OfficeofPolicy
Yearestablished 2022
Governingact/bill(ifapplicable) N/A
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
Technicalassistancetocommunitiestodevelopandadvancetheirown community-drivencleanenergytransitionapproach.
Twenty-fourtothirty-twoselectedcommunitieswillreceivetechnical assistance(in-kindexpertservices)valuedupto$18.75million42
Technicalassistance
Eligibilityrequirements
EligiblecommunitiesaredefinedascommunitiesintheUnited States includingTribalnationsandterritories thatmeetthe followingcriteria:
● Atleast30percentofthecommunitypopulationisclassified aslow-income;and
● Highorsevereenergyburden(medianspendingofhousehold incomeonenergybills≥5percent).43
Additionally,communitiesmustmeetoneorbothofthefollowing
43 U.S.DepartmentofEnergy.2023.“CommunitiesLEAP(LocalEnergyActionProgram)Cohort2Competitive TechnicalAssistanceOpportunity.”U.S.DepartmentofEnergy. https://www.energy.gov/sites/default/files/202309/Communities%20LEAP%20Cohort%202%20Notice%20of%20Technical%20Assistance%20Opportunity%20 9.27.pdf.
Exampleofpreviousrecipients
criteria:
● Historicaleconomicdependenceonfossilfuelindustrial facilities;or
● Disadvantagedcommunities.
ApplicantsmustincludeatleastoneCBOandatleastonelocal,Tribal, territorial,regional,orstategovernmententity.
● DOEprovidesalistoftwenty-fourcommunitiesfromthe firstround.44
Currentstatus(open,reviewing,closed) Closed
Upcomingkeydates(ifapplicable) December14,2023:applicationdeadlineforLEAP2.0 Spring2024:Announcementofselections
Potentialrelevantparties
Recommendationsforutilizingfunds
● Community-ledprojectsworkingincountiesorcensustract areassupportinglocalcleanenergytransitions.
● MostofPuertoRicoiseligibleasperthismap.45
● Community-basedprojectsshouldkeepaneyeonwhat projectsareselectedandupcomingdates.
44 “LEAPCommunities.”2023.CommunitiesLEAP.U.S.DepartmentofEnergy.September27,2023. https://energycommunities.gov/funding-opportunity/communities-local-energy-action-program-leap-round2/#:~:text=Eligible%20applicants%20are%20low%2Dincome.
45 “LEAPEligibleCommunities2023.”2023.U.S.DepartmentofEnergy.September27,2023. https://arcgis.netl.doe.gov/portal/apps/experiencebuilder/experience/?id=2a77f443d72b4a4d82474b3ffe33b8c d.
ProductionTaxCredit
FundNameandLink
RelevantTags
Agency
ProductionTaxCredit
UnitedStatesDepartmentoftheTreasury
Yearestablished 2022-availableforthe2023taxyear
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
MostIRAenergyandclimatefundingisprovidedthroughtax incentivestoindividuals($43billion)andcorporations($216billion).46 Todeliverthesecredits,theIRAestablishedmonetizationmechanisms byaddingnewsectionstotheIRC.Section6417establisheselective payandSection6418establishestransferability.Electivepay(also knownasdirectpay)enableseligibleentities,suchastax-exemptand governmentalentitiesthatwouldnototherwisequalifyforspecifictax creditsduetotheirlackoffederalincometaxliability,totakeadvantage ofcertaincleanenergytaxincentives.ThePTCsareeligibleforelective pay.Transferabilityworksintandemwitheligiblepaytomakecredits availabletoentitiesthatarenoteligibleforelectivepay.Transferability enablescommercial,for-profitentities,suchasprivatesolarorwind developers,toexchangetheirtaxcreditsforcash.47 Therearealsobonus incentivecreditsthatcanbeaddedtoPTCs (moredetailsonpage XX).ThesecreditsboostthegenerosityofthePTCsforprojectsin energycommunities,projectsthatmeetprevailingwageand apprenticeshipstandards,and/orprojectsthatuse“domesticcontent,” whichmeansthesteel,iron,ormanufacturedproductsusedinthe
46 Badlam,J.,JaredCox,AdiKumar,NehalMehta,SaraO’Rourk,&JuliaSilvis.(2022,October24).What’sinthe InflationReductionAct(IRA)of2022.https://www.mckinsey.com/industries/public-sector/our-insights/theinflation-reduction-act-heres-whats-in-it
47 Kaercher,M.,Baneman,R.,Cranor,T.,Sweeney,K.,Rooney,J.,Yan,S.,&Henley,G.(2023).Recommendationsfor GuidanceRegardingElectivePaymentofApplicableCreditsandTransferofCertainCredits. https://www.law.nyu.edu/sites/default/files/Tax%20Law%20Center%20at%20NYU%20Law%20and%20Roger %20Baneman%20Comment%20on%20Proposed%20Elective%20Pay%20and%20Transferability%20Regulations. pdf
Amountallocated
projectweremanufacturedintheUS.48
Thecreditswillbeavailablefor2023-2032.Thereisnotaspecific amountallocatedforthesecredits;theywillbeavailabletoanyeligible entityduringthe10-yearwindow.
Typeoffinancing(grant,loan,etc.) Taxcredit
Eligibilityrequirements
Exampleofpreviousrecipients
Businessesandcertaintax-exemptentitiesinthecommercialand industrialsectorswhoinvestinthefollowingtechnologies:geothermal electric,solarthermalelectric,solarphotovoltaics,wind,biomass, hydroelectric,municipalsolidwaste,landfillgas,tidal,wave,ocean thermal,hydroelectric,offshorewind.PTCsareavailabletobusinesses thatpayfederaltaxes.InPuertoRico,PTCsarealsoavailablevia electivepay.
FordMotorCompanyhasannouncedamulti-billiondollarinvestment inanelectricvehiclebatteryplantusingthePTCknownasthe AdvancedManufacturingProductionCredit.
FirstSolar,Inc.isinvesting$1.2billioninthemanufacturingof photovoltaicmodules,usingPTCstohelpfinancetheproject
Currentstatus(open,reviewing,closed) ThePTCsareavailableforthe2023taxyearandwillcontinuetobe availablethrough2032.
Upcomingkeydates(ifapplicable) TaxDay–04/15/2024
Potentialrelevantparties
EnergymanufacturersandprojectdevelopersinPuertoRico.
Recommendationsforutilizingfunds DevelopersshouldunderstandthevariousPTCsandwhichprojects areeligible.Theyshouldalso understandhowbonusincentivescanbe stacked.
48 IRS.(Nov.16,2023).CreditsanddeductionsundertheInflationReductionActof2022https://www.irs.gov/creditsand-deductions-under-the-inflation-reduction-act-of-2022
FundNameandLink InvestmentTaxCredit
RelevantTags
Agency UnitedStatesDepartmentoftheTreasury
Yearestablished 2022-availableforthe2023taxyear
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
MostIRAenergyandclimatefundingisprovidedthroughtax incentivestoindividuals($43billion)andcorporations($216billion).49 Todeliverthesecredits,theIRAestablishedmonetizationmechanisms byaddingnewsectionstotheIRC.Section6417establisheselective payandSection6418establishestransferability.Electivepay(also knownasdirectpay)enableseligibleentities,suchastax-exemptand governmentalentitiesthatwouldnototherwisequalifyforspecifictax creditsduetotheirlackoffederalincometaxliability,totakeadvantage ofcertaincleanenergytaxincentives..TheITCsarenoteligiblefor electivepay. Transferabilityworksintandemwitheligiblepaytomake creditsavailabletoentitiesthatarenoteligibleforelectivepay. Transferabilityenablescommercial,for-profitentities,suchasprivate solarorwinddevelopers,toexchangetheirtaxcreditsforcash.50 There arealsobonusincentivecreditsthatcanbeaddedtoITCs(moredetails onpageXX).ThesecreditsboostthegenerosityoftheITCforprojects inlow-incomecommunitiesorenergycommunities,projectsthatmeet prevailingwageandapprenticeshipstandards,and/orprojectsthatuse “domesticcontent,”whichmeansthesteel,iron,ormanufactured productsusedintheprojectweremanufacturedintheUS.51
49 Badlam,J.,JaredCox,AdiKumar,NehalMehta,SaraO’Rourk,&JuliaSilvis.(2022,October24).What’sinthe InflationReductionAct(IRA)of2022.https://www.mckinsey.com/industries/public-sector/our-insights/theinflation-reduction-act-heres-whats-in-it
50 Kaercher,M.,Baneman,R.,Cranor,T.,Sweeney,K.,Rooney,J.,Yan,S.,&Henley,G.(2023).Recommendationsfor GuidanceRegardingElectivePaymentofApplicableCreditsandTransferofCertainCredits. https://www.law.nyu.edu/sites/default/files/Tax%20Law%20Center%20at%20NYU%20Law%20and%20Roger %20Baneman%20Comment%20on%20Proposed%20Elective%20Pay%20and%20Transferability%20Regulations. pdf
51 IRS.(Nov.16,2023).CreditsanddeductionsundertheInflationReductionActof2022https://www.irs.gov/creditsand-deductions-under-the-inflation-reduction-act-of-2022
Amountallocated
Thecreditswillbeavailablefor2023-2032.Thereisnotaspecific amountallocatedforthesecredits;theywillbeavailabletoanyeligible entityduringthe10-yearwindow.
Typeoffinancing(grant,loan,etc.) Taxcredit
Eligibilityrequirements
Exampleofpreviousrecipients
ITCsareavailabletoindividualsandbusinessesthatpayfederaltaxes. InPuertoRico,ITCsarenotavailableviaelectivepay.Theonlyway PuertoRicanscantakeadvantageoftheITCisviathird-party ownershipbyentitiesbasedinthemainlandUnitedStates.
ArizonahomeownershaveusedITCcreditstoinstallresidentialsolar panels.52
ArevonEnergyInc.isutilizingITCsandotherIRAtaxcreditstobuild oneofthefirstutility-scalesolarpeakerplantsintheUnitedStates.The projectwillcostnearly$530millionandtheplantwillbelocatedin southernCalifornia.53
Currentstatus(open,reviewing,closed) TheITCsareavailableforthe2023taxyearandwillcontinuetobe availablethrough2032.
Upcomingkeydates(ifapplicable) TaxDay–04/15/2024
Potentialrelevantparties
Homeowners,businesses,energymanufactures,projectdevelopers,but currentlyonlyviathird-partyownershiparrangements.
Recommendationsforutilizingfunds AdvocatethatTreasurywaiveSection50(b)(1)oftheIRCforthe territoriestobecomeeligiblefortheITC.
FindTPOsthatarewillingtoworkwithPuertoRicansandadvocate thatTPOsseekdealsthatmaximizesavingsforPuertoRican householdsandbusinesses
52GonzalezA(2023)AZhomeownertoutsbenefitsofsolarinvestmenttaxcredit.In:PublicNewsService. https://www.publicnewsservice.org/2023-11-03/energy-policy/az-homeowner-touts-benefits-of-solarinvestment-tax-credit/a87045-1.Accessed29Nov2023
53 SolarBuilderMagazine(2023)Arevonleveragesirataxcreditstobuildutility-scalesolarpeakerprojectinCalifornia. https://solarbuildermag.com/projects/arevon-leverages-ira-tax-credits-to-build-utility-scale-solar-peaker-projectin-california/.Accessed29Nov2023
PoweringAffordableCleanEnergyProgram
FundNameandLink
RelevantTags
PoweringAffordableCleanEnergyProgram
Agency UnitedStatesDepartmentofAgriculture
Yearestablished 2022
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
PACEwasintroducedthroughthe IRAandrepresentsthelargest investmentinruralelectrificationinrecentU.S.history.PACEuses$1 billioninfundingtoenableruralcommunitiestoaccesscleanand reliableenergy.
$1billion.
Loanandloanforgiveness,withamaximumloanof$100 millionand aminimumof$1million.
Eligibilityrequirements
Applicantsmustgenerateelectricityforresaletoresidentsinruraland non-ruralareas,withatleast50percentofresidentsservedbeing in ruralcommunities(twentythousandorless).Eligibleentitiesinclude:
● Corporations,states,andterritories,alongwiththeir subdivisionsandagencies
● Municipalities
● Utilitydistricts
● Cooperatives
● Nonprofits
● IndianTribes
● AlaskaNative,regional,orvillagecorporations
● LimitedLiabilityCompaniesorotherfor-profitentities
organizedunderthelawsofanyU.S.stateorterritory
Theprogramalsosupportsdesignatedenergycommunities, disadvantaged,distressedandtribalcommunities.
Exampleofpreviousrecipients Nofundsgrantedyet.
Currentstatus(open,reviewing,closed) Closedforapplications(closed9/23).
Upcomingkeydates(ifapplicable) Notlisted.
Potentialrelevantparties
PACEcanbeusedforwind,solar,hydropower,geothermal,or biomassrenewableenergyprojects,whichinPuertoRicocouldinclude solarfarmsservingprimarilyruralareas,energycommunitiesormicrogridprojects,utilitiesservingruralareas,andenergystoragesystems.
Recommendationsforutilizingfunds Asaterritory,PuertoRicoisabletoaccessthehighestcategoryof PACEloanforgiveness(upto60percentoftotalloanamount)so entitiesshouldprioritizethisfundingsource.
EmpoweringRuralAmericaProgram(NewERA)
FundNameandLink
RelevantTags
Agency
EmpoweringRuralAmericaProgram(NewERA)
UnitedStatesDepartmentofAgriculture
Yearestablished 2023
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
TheNewERAprogramhelpsruralAmericanstransitiontoclean, affordable,andreliableenergy.Byreducingairandwaterpollution, NewERAfundingimproveshealthoutcomesandlowersenergycosts forpeopleinruralcommunities.
$9.7billion.
Loan,grant,loanandgrantcombination,andloanrefinancing.
Eligibilityrequirements
NewERAfundingisavailabletomember-ownedruralelectric cooperatives,whichhavebeencentralto America’sruralpower delivery.ThisincludesexistingorformerUSDARuralUtilitiesService borrowers,borrowersoftheformerRuralElectrification Administration,ruralelectriccooperativesthatservepredominantly ruralareas,andwhollyorjointlyownedsubsidiariesofruralelectric cooperatives.
NewERAapplicantsareseparatedintothreecategories:
● Category1:Totalutilityplantvalueequaltoormorethan $500million.
● Category2:Totalutilityplantvaluemorethan$200million andlessthan$500million.
● Category3:Totalutilityplantvalueequaltoorlessthan$200
million.
Currentstatus(open,reviewing,closed) Closed
Potentialrelevantparties
SeveralPuertoRicoanorganizationshaveappliedforNewERA funding,butthislistofapplicantshasnotbeenpublished. Disbursementsaretobemadebeforetheendofthe2024fiscalyear.
FundNameandLink RuralEnergyforAmericaProgram(REAP)
RelevantTags ✧, ✺
Agency UnitedStatesDepartmentofAgriculture
Yearestablished 2008,2023
Governingact/bill(ifapplicable) FarmBill,IRA
Briefcontextoncreation
Amountallocated
REAPwascreatedin2008FarmBillbycombiningthe2002Farm Bill'sEnergyEfficiencyImprovementsandRenewableEnergySystems Programwithanamendedversionofanother2002FarmBillprogram forgrantsforenergyauditsandassistanceinusingrenewableenergy technologyandresources.
$145million.
Typeoffinancing(grant,loan,etc.) GuaranteedLoans(forPuertoRico).
Eligibilityrequirements
Exampleofpreviousrecipients
REAPisintendedforsmallbusinessesandagriculturalproducers.
● IndividualborrowersmustbecitizensoftheUnitedStatesor resideintheUnitedStatesafterbeinglegallyadmittedfor permanentresidence.
● Private-entityborrowersmustdemonstratethatloanfunds willremainintheUnitedStates.
● Businessesmustbelocatedinruralareaswithpopulationsof 50,000orfewer.
● Agriculturalproducerscanbelocatedinruralornonrural areas.
Recipientsinotherlocationsincludesmallbusinessesupgradingtheir fridgesandotherelectricalproducts,installingsolarpanelsand batteries,etc.
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable)
Potentialrelevantparties
Quarterlyapplicationwindowsaretakingplace,withupcoming deadlinesonMarch312024,June302024,andSeptember302024.
SincemostofPuertoRicoisconsideredrural,entitiesacrossmostof theterritoryareeligibletoapply.
Recommendationsforutilizingfunds REAPispotentiallyhugelybeneficialforsmallbusinessesandfarmers inruralPuertoRico(mostoftheterritory),soapplicationsshouldbe prioritizedandsupported.
FundNameandLink
FEMAAcceleratedAwardsStrategy(FAASt)
RelevantTags ✢
Agency
FEMA
Yearestablished 2020
Governingact/bill(ifapplicable) Section428oftheStaffordAct
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
ThreeyearsafterHurricaneMaria,in2020FEMAlaunchedFAASt for PuertoRico,whichgavePREPA$9.4billiontofundexpeditedenergy gridworkandrestorationscausedbythestorm.In2023,$1.2billion werealsoallocatedforHurricaneFionarecoveryfundsunderthe FAAStmechanism.ThewiderFAAStprogramalsosupportsthe PuertoRicoAqueductandSewerAuthority,PuertoRicoDepartment ofEducation,andPuertoRicoPublicHousingAdministration54
$9.4billion
FundsaretypicallytransferredthroughaRequestforReimbursement process,whereinbeneficiarieswillsubmitProjectWorksheetrequests forapproval.
Insomecases,FEMAcanprocessRequestsforAdvance(RFA).To submitaRFA,applicantsshouldsubmitacontractofwork, procurementplan,and90-dayspendplantoFEMA.Final documentationandconfirmationofpaymentsisduetoFEMA90days afterthedisbursementofRFAfunds.
FEMAcanalsofacilitateaWorkingCapitalAdvance(WCA).To applyforaWCA,applicantsdonotneedacontractorprocurement
54 FEMA.2022.“FEMAAcceleratedAwardsStrategy(FAASt).”FEMA.https://www.fema.gov/about/reports-anddata/faast.
Eligibilityrequirements
plan.However,theapplicantmustcertifythattheobligatedpermanent workprojectwillcomplywithstateandfederalregulations.Underthe WCA,FEMAwillgrantapplicantsa25percentadvancepaymentfor thefederallyobligatedshareoftheproject(whichis90percent).
Thefundingforgridinfrastructureincludesmicrogrid,substation,and transmissionlinerestorations,andotherprojectstoaidemergency recoveryandadvancetheisland’stransitiontorenewableenergy.
Exampleofpreviousrecipients PREPA,LUMA,GeneraPR
Currentstatus(open,reviewing,closed) Open
Potentialrelevantparties
Recommendationsforutilizingfunds
Manyprojectshavealreadybeenapproved,althoughinformationis onlyavailableuptosummer2022.Whentransmission,distribution, andgenerationresponsibilitieswerecontractedtoLUMAandGenera PR,theybecameeligibleforreimbursementsfromthefund,despite PREPAbeingthelegalsubrecipient.
Thesefundsshouldbeleveragedbythemainelectricutilityandits contractorstoinvestingridupdatesandrestorations.
FundNameandLink
RelevantTags
HazardMitigationGrantProgram(HMGP)
Agency FEMA
Yearestablished 1988
Governingact/bill(ifapplicable) Section404oftheStaffordAct
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
ApercentageoftheamountofPublicAssistancefundsfromadisaster declaration getallocatedtotheHMGP.55 UnlikecorePublic Assistancefundswhichmustbelinkedtoaddressingdamage,HMGP fundscanbeusedtoreducevulnerabilitytofuturedisasters.These fundscanbeusedfordifferentkindsofhazardmitigationprojects, includingfloodprotection,retrofittingmeasures,ormicrogrid construction.
56
Theamountapportionedisasubsetofthetotalshareoffederal assistanceunderthedisasterdeclaration.
FundsaretypicallytransferredthroughaRequestforReimbursement process,whereinbeneficiarieswillsubmitProjectWorksheetrequests forapproval.
Insomecases,FEMAcanprocessRequestsforAdvance(RFA).To submitaRFA,applicantsshouldsubmitacontractofwork, procurementplan,and90-dayspendplantoFEMA.Final documentationandconfirmationofpaymentsisduetoFEMA90days afterthedisbursementofRFAfunds.
FEMAcanalsofacilitateaWorkingCapitalAdvance(WCA).To applyforaWCA,applicantsdonotneedacontractorprocurement
55 FEMA.2023.“HazardMitigationGrantProgram(HMGP).”FEMA. https://www.fema.gov/grants/mitigation/hazard-mitigation.
56 PuertoRicoCentralOfficeforRecovery,Reconstruction,andResiliency.n.d.“PuertoRicoDisasterRecovery TransparencyPortal.”PuertoRicoDisasterRecoveryTransparencyPortal-COR3.AccessedJanuary7,2024. https://recovery.pr.gov/en/recovery-programs/hazard-mitigation-assistance.
plan.However,theapplicantmustcertifythattheobligatedpermanent workprojectwillcomplywithstateandfederalregulations.Underthe WCA,FEMAwillgrantapplicantsa25percentadvancepaymentfor thefederallyobligatedshareoftheproject(whichis90percent).
Eligibilityrequirements Applicantsandsub-applicantsmusthaveaFEMA-approved mitigationplanaswellasanHMGPmitigationplan.57
Currentstatus(open,reviewing,closed) Open,asofthe2020allocationofHurricaneMariarecoveryfunds.
Upcomingkeydates(ifapplicable) Awardsmustbeclosedwithin48monthsfromthecloseofthe applicationperiod.
Potentialrelevantparties Governor’sOfficeofPuertoRico.
Recommendationsforutilizingfunds TheGovernor’sOfficecanuseHMGPfundstosupportPREPA, LUMA,GeneraPR,ormunicipal-levelprojects.
57 FEMA.“HazardMitigationAssistanceProgramandPolicyGuide.”FEMA,22September2023, https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.Accessed7January 2024.
BuildingResilientInfrastructureandCommunities(BRIC)
FundNameandLink
BuildingResilientInfrastructureandCommunities(BRIC)
RelevantTags ◎, ✩, ✧, ✺
Agency FEMA
Yearestablished Updatedin2020
Governingact/bill(ifapplicable) StaffordAct203
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
BRICwasestablishedunderSection203oftheStaffordRecoveryAct, whichauthorizedFEMAtofundcost-effectivehazardmitigation projectsthatlessenthelikelihoodofpropertydestruction,protectlife, andreduceinjuries.58
Variesannually.$3billioninFY22,$1billioninFY23
FundsaretypicallytransferredthroughaRequestforReimbursement process,whereinbeneficiarieswillsubmitProjectWorksheetrequests forapproval.
Insomecases,FEMAcanprocessRequestsforAdvance(RFA).To submitaRFA,applicantsshouldsubmitacontractofwork, procurementplan,and90-dayspendplantoFEMA.Final documentationandconfirmationofpaymentsisduetoFEMA90days afterthedisbursementofRFAfunds.
FEMAcanalsofacilitateaWorkingCapitalAdvance(WCA).To applyforaWCA,applicantsdonotneedacontractorprocurement plan.However,theapplicantmustcertifythattheobligatedpermanent workprojectwillcomplywithstateandfederalregulations.Underthe WCA,FEMAwillgrantapplicantsa25percentadvancepaymentfor thefederallyobligatedshareoftheproject(whichis90percent).
58 FEMA.2023.“HazardMitigationAssistanceProgramandPolicyGuide.”FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.
Eligibilityrequirements
Statesandterritoriesmusthavehadadisasterdeclarationunderthe StaffordActinthelastsevenyearstoapplyforBRIC.Local governmentsandtribesareeligibletoapplytostatesandterritoriesfor federalassistanceunderBRICassub-applicants.59 Whilebusinesses, NGOs,andindividualsareineligible,eligibleapplicants/sub-applicants canapplyonbehalfoftheseentities.
Exampleofpreviousrecipients AmericanSamoa:Faga'aluShorelineProject;Pennsylvania:The CohocksinkFloodMitigationProject.
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable) TheclosingdateforFY2023applicationsisFebruary29,2024.FY2024 applicationwillbepostedonline.
Potentialrelevantparties PuertoRicangovernment;mayorsandmunicipalentities.
Recommendationsforutilizingfunds Localentitiescanusethesefundstoreceivegrantsforsmallerprojects thatwillincreasegridresiliencebutdonotfallundercurrentprovider orutilityprojectplans.
59 FEMA.2023.“HazardMitigationAssistanceProgramandPolicyGuide.”FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.
FundNameandLink FloodMitigationAssistance
RelevantTags
Agency FEMA
Yearestablished 1994
Governingact/bill(ifapplicable) NationalFloodInsuranceReformActof1994
Briefcontextoncreation
Amountallocated
Typeoffinancing(grant,loan,etc.)
Thegrantscanbeusedtomitigatefloodriskforstructuresinsuredby theNationalFloodInsuranceProgram.60,61
Variesannually.FY23hadan$800millionallocation.
FundsaretypicallytransferredthroughaRequestforReimbursement process,whereinbeneficiarieswillsubmitProjectWorksheetrequests forapproval.
Insomecases,FEMAcanprocessRequestsforAdvance(RFA).To submitaRFA,applicantsshouldsubmitacontractofwork, procurementplan,and90-dayspendplantoFEMA.Final documentationandconfirmationofpaymentsisduetoFEMA90days afterthedisbursementofRFAfunds.
FEMAcanalsofacilitateaWorkingCapitalAdvance(WCA).To applyforaWCA,applicantsdonotneedacontractorprocurement plan.However,theapplicantmustcertifythattheobligatedpermanent workprojectwillcomplywithstateandfederalregulations.Underthe WCA,FEMAwillgrantapplicantsa25percentadvancepaymentfor thefederallyobligatedshareoftheproject(whichis90percent).
60 FEMA.2023.“FloodMitigationAssistanceGrantProgram.”FEMA.https://www.fema.gov/grants/mitigation/floodmitigation-assistance.
61 FEMA.2023.“HazardMitigationAssistanceProgramandPolicyGuide.”FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.
Eligibilityrequirements
Exampleofpreviousrecipients
State,TerritoryandTribalGovernmentsareeligibletoapply.
Recipientsandsub-applicantscoveredawiderangeoflocationsand projecttypesinFY2022.62
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable) FY23applicationscloseFebruary29,2024.Newnoticeoffunding opportunityforFY24tobepostedonline.Applicantsmustalsohavea FEMA-approvedhazardmitigationplan.
Potentialrelevantparties
AlllocalitiesinPuertoRicoqualifyfortheNFIP.63 TheTerritory governmentwouldbetheprimaryapplicantforFloodMitigation Assistance;localgovernmentswouldbesub-applicants.
Recommendationsforutilizingfunds Thesefundscanbeusedforshorelineandflood-vulnerablecommunity protectionfromflooddamageinPuertoRico.
62 FEMA. 2023. “Flood Mitigation Assistance Grant Program FY22 Subapplication and Selection Status.” FEMA. https://www.fema.gov/grants/mitigation/flood-mitigation-assistance/after-you-apply/fy22-status
63 FEMA. 2023. “Communities Participating in the National Flood Program - Puerto Rico.” FEMA. https://www.fema.gov/cis/PR.html
CommunityChangeGrants
FundNameandLink CommunityChangeGrants
RelevantTags ✩, ◎
Agency EnvironmentalProtectionAgency
Yearestablished 2023
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
TheEPAhasestablishedgrantsfundedthroughIRAresourcesto supportclimatejusticeinitiativesinmarginalizedcommunities.These grantswillfundprojectsaimedatreducingpollution,enhancing climateresilience,andbuildingcapacitytoaddressclimatejustice challengesintheseareas.
$2Billion
Typeoffinancing(grant,loan,etc.) Grants (Mostawardswillbeallocatedinamountsof$10-20million)
Eligibilityrequirements
Theintendedaudienceforthesefundsiscommunity-basednon-profit organization(CBOs);partnershipsbetweenCBOsandfederally recognizedtribes,localgovernments,andinstitutionsofhigher learning;andcollaboratingsub-recipientsandsubcontractors.
ApplicationsmustcomefromapartnershipbetweenatleasttwoCBOs orbetweenaCBOandafederallyrecognizedtribe,localgovernment, andinstitutionofhigherlearning.Recipientsmustbeabletoprovide activitiesasoutlinedintheNoticeofFundingOpportunity(NOFO).64
64 EPA. 2023. “Frequently Asked Questions - Community Change Grants Program.” 2023. https://www.epa.gov/system/files/documents/2023-08/Frequently%20Asked%20Questions%20%20Community%20Change%20Grants%20August%202023_0.pdf
Currentstatus(open,reviewing,closed) Open
Upcomingkeydates(ifapplicable) ApplicationsareopenuntilNovember21,2024.Applicationswillbe reviewedonarollingbasis.
Potentialrelevantparties Mayors,communityleaders,andcommunityorganizationsonislands incollaborationwithlocaljurisdictions.
Recommendationsforutilizingfunds Thesefundscouldbeusedinsmalltownsandislandstoinstallrooftop solarinthemostdisadvantagedcommunities.
FundNameandLink CPRGPlanningGrants(PhaseIofCPRG)
RelevantTags
Agency EnvironmentalProtectionAgency
Office ClimatePollutionReductionGrants
Yearestablished 2022
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation Provides“flexiblesupport”forterritoriestodesignclimateactions plansthatincorporateavarietyofmeasurestoreducegreenhousegasses acrosssixkeysectors(electricitygeneration,industry,transport, buildings,agriculture,wastemanagement)
Amountallocated ~$250million-upto$3millionperaward
Typeoffinancing(grant,loan,etc.) Grant(non-competitivecooperativeagreements),four-yearperiod
Eligibilityrequirements Territorieseligible
Exampleofpreviousrecipients FromEPA:“PuertoRicowillusethefundstoaugmentclimate planningincollaborationwithmunicipalitiesandconductmeaningful engagementwithcommunities,includingwithoverburdened communities.”65
65 USEPA,OA.2023.“EPAandPuertoRicoAnnounce$3MillionforPuertoRicotoPlanInnovativeClimateProjects.” Www.epa.gov.April12,2023.https://www.epa.gov/newsreleases/epa-and-puerto-rico-announce-3-millionpuerto-rico-plan-innovative-climate-projects#:~:text=Puerto%20Rico%2C%20the%2050%20states.
Currentstatus(open,reviewing,closed) $3millionawardtoPR-DNERpendingasof10/25/2023.Thisisodd becauseeveryotherawardhasbeenapproved,andmayindicatethe proposalwasapprovedbutfundshavenotbeenallocated
Upcomingkeydates(ifapplicable)
Deliverablesinclude:
1. PCAP-April1,2024
2. CCAP-duewhengrantperiodends
BothofthesedeliverablesaredescribedindetailinAppendix14.2of theProgramGuidanceforTribesandTerritories
Potentialrelevantparties
Recommendationsforutilizingfunds
Nonprofitorganizations,municipalities,anduniversitiesareeligiblefor subawards.ThismayberelevantforPR-DNERinconsideringwhoit canhirefordevelopingthePCAPandCCAP,whichqualifiesasan eligibleexpenditureundertheprogram.
Page11oftheFAQoutlineseligibleactivitiesunderthisprogram
- SpecificrecommendationswilldependonDNER’sproposal andplannedactivities.Regardlessofplans,PR-DNER shouldincorporatemunicipalgovernment(mayors)to developcomprehensiveplansforcommunityoutreach, universitiesfordatacollection,nonprofitsfor implementationplanning*
- Implementationgrants(phase2,discussedbelow)willonly beawardedtoproposalsthatincludeactivitiespresentedin thePCAP(deliverable,above).Assuch,thePCAPshould identityambitiousplansthatencompassmultiplesectorsand areasofPuertoRico
FundNameandLink CPRGImplementationGrants(PhaseIIofCPRG)
RelevantTags ◎
Agency EnvironmentalProtectionAgency
Office ClimatePollutionReductionGrants
Yearestablished 2022
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
Twocompetitions:
- Oneforstates,municipalities,tribes,tribalconsortia,and territories
- Onecompetitiononlyfortribes,tribalconsortia,and territories
TheeffectivepurposeofImplementationGrants/PhaseIIofCPRGis forentitieswhoreceivedaplanninggrantanddeliveredthePCAPto implementtheactivitiesoutlinedtherein.Otherentitiescapableof implementingsomeactivityoutlinedinthePCAParealsoeligibleto apply.
$4.6billion,individualgrantsforterritoriesexpectedbetween$1and $25million
Typeoffinancing(grant,loan,etc.) Grant(competitive)-NoticeofFundingOpportunity(NOFO)
Eligibilityrequirements
Exampleofpreviousrecipients
Opentoentitiesthatreceivedplanninggrants(PhaseIofCPRG, discussedintheprecedingbucket)andentitiesseekingtoimplement activitiesoutlinedinthePCAP(includingmunicipalitiesandother organizations).Territoriesareeligibletoapplyforboththefirstand secondcompetitivefundingopportunities.
Currentstatus(open,reviewing,closed) Requestforapplicationsispublic-datesbelow
Upcomingkeydates(ifapplicable) Foropencompetitions:
- OptionalNoticeofIntent(NOI)toApply-February1,2024
- Completeapplications-April1,2024 Fortribesandterritoriesonlycompetitions:
- OptionalNOItoApply-March1,2024
- Completeapplications-May1,2024
Awardsout-October2024
Potentialrelevantparties
AnyorganizationinPRcapableofcarryingoutanactivitylaidoutin PR-DNER’sPCAP
Recommendationsforutilizingfunds - ItmaybeinthebestinterestofPRtoapplytobothfunding opportunitiesthroughCPRGPhase2.
- PerFAQs,page9,coalitionsconsistingofatleastoneentity thatwereawardedaplanninggrantanddeliveredaPCAP (PR-DNER)willbeconsidered,butnotgivenpreference. Thatsaid,acoalitionconsistingofmultiplestakeholderson PRmaypresentastrongerapplicationthanDNERalone.
- Workwithtechnicalassistanceopportunitiespresentedby EPA,includingwebinarsandRegion2personnel,toidentify gapsintheproposalthatmaymakethebidlesscompetitive.
- Besurethatactivitiesincludedinthisproposalalignclosely withactivitiespresentedinthePCAP.Iftheydonot,the proposalmaybedeemedineligible.
GreenhouseGasReductionFund
CleanCommunitiesInvestmentAccelerator
FundNameandLink CleanCommunitiesInvestmentAccelerator
RelevantTags
Agency EnvironmentalProtectionAgency
Office CleanCommunitiesInvestmentAccelerator
Yearestablished 2022
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
TheAcceleratorwilldeploy$6billionthroughgrantsto2-7hub nonprofits,whichwillthenprovidefundingandtechnicalassistanceto communitylendersthatareeitherpublic,quasi-public,ornonprofit. Examplesofcommunitylendersinclude:greenbanks,community developmentfinancialinstitutions,creditunions,housingfinance agencies,minoritydepositoryinstitutions,andmanyothers
Thefundingassistancewillsupportthecapitalizationofthese communitylendersthroughsub-grantsorsubsidies.Thetechnical assistancegrantswillbedesignedtosupportthecapacityofcommunity lenders.
100%ofprojectsfundedundertheCCIAmustbespentinatleastone ofthreepriorityareasANDlocatedinalow-incomeanddisadvantaged community.Thethreeprioritycategoriesare:
(1)DistributedEnergyGeneration (2)Net-ZeroEmissionsBuildings
(3)Zero-EmissionsTransportation.
$6Billion
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
Exampleofpreviousrecipients
Applicantshadtomeetthefollowingrequirements:
(a)isanon-profit;(b)isdesignedtoprovidecapital,leverageprivate capital,andprovideotherformsoffinancialassistancefortherapid deploymentoflow-andzero-emissionproducts,technologies,and services;(c)doesnottakedepositsotherthandepositsfromrepayments andotherrevenuereceivedfromfinancialassistanceprovidedusing grantfundsunderthisprogram;(d)isfundedbypublicorcharitable contributions;and(e)investsinorfinancesprojectsaloneorin conjunctionwithotherinvestors.
Eligiblerecipientscouldhaveappliedasindividualapplicantsorasthe “leadapplicant”inacoalition.
Thisprogramhasnotyetmadeanyawards.
Currentstatus(open,reviewing,closed) Theapplicationperiodhasclosed,andEPAiscurrentlyreviewing applications,withannouncementsexpectedbyMarch2024.
Upcomingkeydates(ifapplicable)
OCTOBER12,2023-Applicationpackagesfromnational nonprofitsweredue. BYMARCH2024-EPAexpectsthegrantrecipientswillbeselected byMarch2024. BYJULY2024-Programsfundedunderthisopportunitywillstart byJuly2024.
Potentialrelevantparties
Recommendationsforutilizingfunds
ThePuertoRicanGreenEnergyTrustandotherPuertoRican communitylenders–suchasotherlocalgreenbanks,community developmentfinancialinstitutions,creditunions,housingfinance agencies,minoritydepositoryinstitutions,andmanyothers
RecipientsofCCIAfundingwillneedtounderstandtheunique political,financial,andlegalbarriersPuertoRicofacesto achieveitsenergytransition. PuertoRicofacesmanyunique challengesinachieving100%renewableenergy,including,asoutlined inothersectionsofthisreport, legalhurdlestotakingadvantageof someother IRAprogramsthatthefiftystatesandWashington,DCdo notface.When CCIArecipientsareannounced,theyshouldensure theydesignnewprogramsinawaythatensuresPuertoRicansare eligibletoreceivethesamelevelsofsupportthatotherAmericans receive.
ThePRGreenEnergyTrustmustidentifyanExecutiveDirector andpromptlysetupfinancingvehiclesthatcouldreceive
fundingCCIAfundedentities.AstheTerritory'sofficialgreen bank,GreenEnergyTrustwouldbetheidealentitytoreceivefunding undertheCCIA.However,ifthetrustfailstobuildthestaffingand programcapacitynowadequately,itwillbeill-preparedtoapplyfor fundingwhenfinancingisavailablelaternextyear.
NationalCleanInvestmentFund
FundNameandLink
NationalCleanInvestmentFund
RelevantTags ✿
Agency EnvironmentalProtectionAgency
FundName
NationalCleanInvestmentFund(GreenhouseGasReductionFund)
Yearestablished 2022/23
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Amountallocated
Thisnewprogramwillaward$14billionto2-3nationalcleanenergy financinginstitutions(sometimescalledgreenbanks).These institutionswillspendthefundingtoenableindividuals,families, nonprofits,governments,smallbusinesses,andotherstoaccessthe capitaltheyneedtodeploycleantechnologies.
Allfundsmustbespentinoneofthreepriorityprojectcategories,and atleast40%mustbespentinlow-incomeanddisadvantaged communities.Thethreeprioritycategoriesare(1)DistributedEnergy Generation,(2)Net-ZeroEmissionsBuildings,and(3)Zero-Emissions Transportation.
$14Billion
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
Applicantshadtomeetthefollowingrequirements:
(a)isanon-profit;(b)isdesignedtoprovidecapital,leverageprivate capital,andprovideotherformsoffinancialassistancefortherapid deploymentoflow-andzero-emissionproducts,technologies,and services;(c)doesnottakedepositsotherthandepositsfromrepayments andotherrevenuereceivedfromfinancialassistanceprovidedusing grantfundsunderthisprogram;(d)isfundedbypublicorcharitable contributions;and(e)investsinorfinancesprojectsaloneorin
conjunctionwithotherinvestors.
Eligiblerecipientscouldhaveappliedasindividualapplicantsorasthe “leadapplicant”inacoalition.
Exampleofpreviousrecipients Thisprogramhasnotyetmadeanyawards.
Currentstatus(open,reviewing,closed) Theapplicationperiodhasclosed,andEPAiscurrentlyreviewing applications,withannouncementsexpectedbyMarch2024.
Upcomingkeydates(ifapplicable) OCTOBER12,2023-Applicationpackagesfromnational nonprofitsweredue. BYMARCH2024-EPAexpectsthegrantrecipientswillbeselected byMarch2024. BYJULY2024-Programsfundedunderthisopportunitywillstart byJuly2024.
Potentialrelevantparties GreenEnergyTrust,MunicipalGovernments,Localnonprofits
Recommendationsforutilizingfunds RecipientsofNCIFfundingwillneedtounderstandtheunique political,financial,andlegalbarriersPuertoRicofacesto achieveitsenergytransition. PuertoRicofacesmanyunique challengesinachieving100%renewableenergy,including,asoutlined inothersectionsofthisreport, legalhurdlestotakingadvantageof someother IRAprogramsthatthefiftystatesandWashington,DCdo notface.WhenNCIFrecipientsareannounced,theyshouldensure theydesignnewprogramsinawaythatensuresPuertoRicansare eligibletoreceivethesamelevelsofsupportthatotherAmericans receive.
ThePRGreenEnergyTrustmustidentifyanExecutiveDirector andpromptlysetupfinancingvehiclesthatcouldreceive fundingfromNCIFfundedentities.AstheTerritory'sofficial greenbank,GreenEnergyTrustwouldbeanidealentitytoreceive fundingundertheNCIF.However,ifthetrustfailstobuildthe staffingandprogramcapacitynowadequately,itwillbeill-preparedto applyforfundingwhenfinancingisavailablelaternextyear.
SolarforAll
FundNameandLink
RelevantTags
SolarForAll
Agency EPA
Office SolarforAll(GreenhouseGasReductionFund)
Yearestablished 2022/23
Governingact/bill(ifapplicable) InflationReductionAct
Briefcontextoncreation
SolarforAllisanew$7billionprogramcreatedbytheEPA(aspartof theGGRF)tospurthenationwidedeploymentofresidential distributedsolarenergy.Thesolarprojectswilleitherberesidential solarprojectsorresidentialservingcommunitysolarprojects.Under thestatute,100%ofprogramfundsmustbespentinlow-incomeand disadvantagedcommunities.
Amountallocated $7Billion
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
Allstates,territories,tribalgovernmentsandmunicipalitiescouldapply (thedeadlinehaspassed).EPAanticipatesmakingupto60awards underthisannouncement upto56awardsforeachstate/territory eligibleinthiscompetition,upto5awardssetasidetoserveAmerican IndianandAlaskaNativeCommunities,andupto10awardsfor multi-stateprograms.
Nonprofitsalongwithmunicipalandtribalgovernmentswereeligible toapplyaspartofregionalornationalcoalitionstoserveeitheragroup ofAmericanIndianandNativeAlaskanscommunitiesoragroupof otherwise“similar”communitiesinmultiplestates.Proposalsonbehalf ofstateandterritorygovernmentswerenoteligibletoapplyaspartofa coalitionwithotherstates/territories.
Exampleofpreviousrecipients
Thisprogramhasnotyetmadeanyawards.
Currentstatus(open,reviewing,closed) Theapplicationperiodhasclosed.EPAiscurrentlyreviewing applications,withannouncementsexpectedinearlytomid-spring.
Upcomingkeydates(ifapplicable) September24,2023-Applicationdeadline
Spring2024-Granteeswillbeselected/announced July2024-EPAanticipatestobeginmakingawards September30th,2024-AllfundsmustbeawardedundertheIRA
Potentialrelevantparties
Recommendationsforutilizingfunds
AccordingtotheEPAwebsite,theorganizationsbelowfiledNOIsin mid-August2023.However,infollow-upconversationswithPuerto Ricanofficials,ourgroupheardthatatleastoneofthebelowNOIs waslatermodifiedtochangetheleadapplicant.
OFINTENT(Aug2023)
1. Territorygovernmententities:
o PuertoRicoDepartmentofHousing
2. Nonprofitentities:
o AhoraInc.
o CatholicClimateCovenant
o HispanicFederationInc.
o LaFundacióndelPerpetuoSocorro(FPS)
o PathStoneCorporation
o PuertoRicoCleanEnergyNonprofitCorporation
3. Municipalentities
o MunicipalityofBayamón
EPAandanyPuertoRicanSolarforAllgrantrecipientsmust accountfortheuniquepolitical,financial,andlegalbarriers PuertoRicofacestoachieveitsenergytransition. PuertoRico facesmanyuniquechallengesinachieving100%renewableenergy, including,asoutlinedinothersectionsofthisreport, legalhurdlesto takingadvantageofsomeother IRAprogramsthatthefiftystatesand Washington,DCdonotface.EPAmustawardfundinginawaythat ensuresPuertoRicansareeligibletoreceivethesamelevelsofsupport thatotherAmericansreceive.
CommunityDevelopmentBlockGrantDisasterRecovery
EnergyGridRehabilitationandReconstructionCostShareProgram
FundNameandLink
RelevantTags
ER1:EnergyGridRehabilitationandReconstructionCostShare Program
Agency OfficeoftheAssistantSecretaryforCommunityPlanningand Development,HUD
Office
Yearestablished
Governingact/bill(ifapplicable)
Briefcontextoncreation
CDBG-DREnergy:ER1(EnergyGridRehabilitationand ReconstructionCostShareProgram)
TheER1programwasannouncedbyHUD in2021,from CDBG-DRappropriationsmadein2018and2020
The“FurtherAdditionalSupplementalAppropriationsfor DisasterReliefRequirementsActof2018”allocatedroughly$28 billioninCDBG–DRfunds;ofthis,$1.93billionwasfor “electricalpowersystemenhancementsandimprovements”for PuertoRico’smostdistressedareas.66
Ofthe$1.93billionallocatedspecificallytoPuertoRico,HUD hasallocated$500millionfortheEnergyGridRehabilitation CostShareProgram,orER1.67
TheER1programisspecificallyintendedtocoverthenonfederalmatchrequirementforFEMA’sPublicAssistance allocation.TheFEMAAcceleratedAwardsStrategy,orFAASt,is afundingmechanismcreatedbyFEMAtoexpeditecritical energyinfrastructureprojects,andwhichrequiresa10%nonfederalfundingmatch.WiththePuertoRicoDepartmentof HousingastherecipientandPREPAasthesubrecipient,ER1
66 “Allocations,CommonApplication,Waivers,andAlternativeRequirementsforCommunityDevelopmentBlockGrant DisasterRecoveryGrantees;ElectricalPowerSystemsinPuertoRicoandtheU.S.VirginIslands.”n.d. https://www.govinfo.gov/content/pkg/FR-2021-06-22/pdf/2021-12934.pdf.
67 “ElectricalSystemEnhancements.”2021.CDBG.October11,2021.https://cdbg-dr.pr.gov/en/electrical-systemenhancements/.
Intendedaudience
Amountallocated
Typeoffinancing(grant,loan,etc.)
Eligibilityrequirements
Exampleofpreviousrecipients
Currentstatus(open,reviewing,closed)
fundingcanbeusedtomeetthis10%non-federalmatch requirementforFAAStprojects.
PuertoRicoDepartmentofHousing,PREPA,additional subrecipients(asoutlinedbyFAASt)
$500millionasmatchingfunds
10%non-federalfundingmatchforFAAStprojects.
TheSubrecipientmusthavebeenacceptedintoafederalagency’s disasterrecoveryprogramandhavebeendeterminedbythelead federalagencytohaveeligibleprojectstoparticipateinER1 Program.TheeligibleSubrecipientfortheER1Programis PREPAand/oritsdesignatedofficialrepresentative.
N/A
ER1FundsarecurrentlybeingusedtofundFAAStapproved projects
Potentialrelevantparties
Recommendationsforutilizingfunds
PRDOH,PREPA,Luma,additionalsubrecipientsunderthe FAAStPW
AccordingtotheFAAStProjectExecutiondashboard, noneof PREPA’sprojectsintheFAAStpipelinearerelatedtorenewable energy.ThisisdespiteER1fundingexplicitlyallowingthecostof renewablegenerationequipmentaseligible,and“Renewable Energybeinglistedasthetop“keyPriority”ontheprograms website.PREPAandHUDshouldbeginfoldinginrenewable projectsintotheirprojectselectionandfunding,astheyqualify forallbaselineeligibilityrequirements.
FundNameandLink ER2:ElectricalPowerReliabilityandResilienceProgram
RelevantTags
Agency
Office
Yearestablished
Governingact/bill(ifapplicable)
Briefcontextoncreation
OfficeoftheAssistantSecretaryforCommunityPlanningand Development,HUD
CDBG-DREnergy:ER2(ElectricalPowerReliabilityand ResilienceProgram)
Longtermdisasterrecoveryfundsfirstappropriatedin1992. CDBG-DRfundingisbasedondisasterspecificcongressional appropriations.
The“FurtherAdditionalSupplementalAppropriationsfor DisasterReliefRequirementsActof2018”allocatedroughly$28 billioninCDBG-DRfunds;ofthis,$1.93billionwasfor“electrical powersystemenhancementsandimprovements”forPuertoRico’s mostdistressedareas.
68
Ofthe$1.93billionallocatedspecificallytoPuertoRico,HUD1 hasallocated$1.3billionfortheElectricalPowerReliabilityand ResilienceProgram,orER2.69
TheCDBG-DREnergyElectricalPowerReliabilityandResilience (ER2)Program’sgoalistoimprove“electricsystemreliability, affordability,andresiliency”throughelectricsystemenhancements orimprovements.70 Projectsareaimedatdecentralizedsourcesof powergeneration,distribution,andstoragetominimize disruptions.Theseprojectsincludemicrogridsanddistributed energyresources,renewablegeneration,combinedheatandpower systems,andbatterystoragesystems.
68 “Allocations,CommonApplication,Waivers,andAlternativeRequirementsforCommunityDevelopmentBlock GrantDisasterRecoveryGrantees;ElectricalPowerSystemsinPuertoRicoandtheU.S.VirginIslands.”n.d. https://www.govinfo.gov/content/pkg/FR-2021-06-22/pdf/2021-12934.pdf.
69 “ElectricalSystemEnhancements.”2021.CDBG.October11,2021.https://cdbg-dr.pr.gov/en/electrical-systemenhancements/.
70 “ElectricalPowerReliabilityandResilienceProgram.”2023.CDBG.June27,2023.https://cdbgdr.pr.gov/en/electrical-power-reliability-and-resilience-program/.
Intendedaudience
Amountallocated
GovernmentofPuertoRico’sagenciesandauthoritiesundertaking projectstosupportelectricalpowersystemimprovements;Publicprivatepartnerships,Municipalities;For-ProfitBusinesses; Public Hospitals/HealthSystemEntities;Non-Governmental Organizations/Not-for-ProfitEntitiesthatmeetthecapacityand experiencerequirements.
$1.3Billion,withminimumawardsof$5Millionperprojects
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
AneligibleER2fundedprojectmust:
● MeetHUDnationalobjectives
● MeetelectricalpowersystemsimprovementsCDBG-DR eligibleactivityrequirements
● Addressaneligibleunmetneedafteraccountingforall duplicationofbenefits
● Befeasibleandsustainable,withallotherfundingsources firmlycommittedifapplicable
Exampleofpreviousrecipients N/A
Currentstatus(open,reviewing,closed)
Upcomingkeydates(ifapplicable)
Potentialrelevantparties
Currentlyopenforapplications
ApplicationPeriod:August15,2023toJanuary30,2024
Eligiblerecipientsofprojectfundsinclude:
● GovernmentofPuertoRico’sAgencies,Authorities, TrustsorBoards(undertakingprojectstosupport electricalpowersystemimprovements)
● Public-privatepartnerships
● UnitsofGeneralLocalGovernment(Municipalities); For-ProfitBusinesses
● PublicHospitalsorHealthSystemEntities
● Non-GovernmentalOrganizations(501(c)(3))
Recommendationsforutilizingfunds
● Not-for-ProfitEntitiesthatmeetthecapacityand experiencerequirements.
Focusfundsforcreatingmicrogridsinlow-incomecommunities whichexperiencedthelongestblackoutperiodsduringprior hurricanes.Prioritizingthemostvulnerablecommunitieswill ensurethatpotentiallylifesavingenergyneedscanbemetduring futuredisasters.
CommunityEnergyandWaterResilienceInstallationsProgram
FundNameandLink
RelevantTags
Agency
Office
CEWRI:CommunityEnergyandWaterInstallationsProgram
✺
HUD,PuertoRicoDepartmentofHousing
CDBG-DRCEWRIProgram(includesNewEnergy,Solar Incentive,andCommunityInstallationssubprograms)
Yearestablished 2021
Governingact/bill(ifapplicable)
Briefcontextoncreation
Intendedaudience
Individualsupplementalappropriations
TheCEWRIProgramwascreatedfromCDBG-DR appropriationsfollowingHurricanesMariaandIrma.71
TheCEWRIprogramprovidesenergyandwaterefficiencyand resiliencyinstallationtoeligiblecasesbeingrehabilitated, reconstructed,relocated,orprovidedwithanewconstruction undertheCDBG-DRR3Program,withoutanycosttothe applicant.72 Theeligiblehouseholdunitswill receive improvementswhichincludetheinstallationofasolar (photovoltaic)systemwithabatterysystemforessentialplugloads tosupplyenergyintheeventofapoweroutagesituationand installationofawaterstoragesystem.Fortheenergyresilience installation,thephotovoltaicsystemwithbatterybackupwill alloweligibleapplicantstheabilitytoruncriticalloads,some householdappliances,life-supportdevices,andpermitforshelterin-placeoptionsduringoutages.Thisprogramwillbeusedasan add-ontoorpotentiallyintegratedwithintheapplicableCDBGDRprogram,suchastheR3Program.
Homeowners,qualifyingcommunities,andregisteredRenewable EnergyInstallationCompanies(REICs)
71 “OVERSIGHTHEARINGCOMMITTEEONNATURALRESOURCESU.S.HOUSEOF REPRESENTATIVES.”2022.GovInfo.https://www.govinfo.gov/content/pkg/CHRG117hhrg49823/pdf/CHRG-117hhrg49823.pdf.(“PuertoRicoDisasterRecoveryActionPlan”2023)
72 “CommunityEnergyandWaterResilienceInstallationsProgram,”CDBG(blog),October27,2021,https://cdbgdr.pr.gov/en/community-energy-and-water-resilience-installations-program/
Amountallocated
$395Million
Typeoffinancing(grant,loan,etc.) Grants
Eligibilityrequirements
Exampleofpreviousrecipients
Currentstatus(open,reviewing,closed)
TherearethreesubprogramsundertheCEWRIprogram:New Energy,SolarIncentive,andCommunityInstallations.
● BeneficiariesoftheNewEnergyProgrammustqualifyas very-lowincome,aswellasownandusethepropertyas theprimaryresidence.
● BeneficiariesoftheSolarIncentiveProgrammusthave anincomebetween0%and200%ofAreaMedianFamily Incometoqualifyforupto30%ofarenewableenergy systeminstallation.
● BeneficiariesoftheCommunityInstallationsprogram arechosenbythePRDOHbasedoncommunity disruptiontime,vulnerability,andnumberofresidents. Ofmembersintheselectedcommunities,selected residentsmustearnbetween1%and200%AreaMedian FamilyIncome.
Allbeneficiariesmustbehomeownersalreadyparticipatinginthe R3Program.Applicantsmustuseanapprovedandregistered REICforsysteminstallation.
IndividualhomeownersandfamiliesintheR3Program.
EachoftheCommunityEnergyandWaterResilience Installations’subprogramshavedifferentapplicationwindows:
CEWRI-NewEnergyProgram:March27-August31,2023(May reopeninthefuture)
CEWRI-SolarIncentiveProgram:Allticketsforprogram participationhavebeendistributed,andthesubprogramisclosed tonewapplicants
CEWRI-CommunityInstallations:Communitiesinhouseholds areselectedbythesubprogrambasedonneed,notapplication.
Upcomingkeydates(ifapplicable) NewEnergyProgramSecondfundinground (datesunknown) CommunityInstallationsProgramcommunityselectionrelease (datesunknown)
Potentialrelevantparties
ThisprogramisspecifictothePuertoRicoDepartmentof Housing’sDisasterRecoveryandMitigationplan.
Recommendationsforutilizingfunds FostercommunicationbetweentheCommunityInstallations subprogramandtheER2(ElectricalPowerReliabilityand ResilienceProgram)toensureavoidduplicationofwork,impact themostvulnerablecommunities,andmaximizeprojectfunding opportunities.
FundNameandLink GreenandResilientRetrofitProgram
RelevantTags ✺, ✧
Agency DepartmentofHousingandUrbanDevelopment
Office GreenResilientRetrofitProgram
Yearestablished 2023
Governingact/bill(ifapplicable) IRA
Briefcontextoncreation
Intendedaudience
Amountallocated
“TitleIIIoftheIRA,(Publ.L.117-169),titled“ImprovingEnergy EfficiencyorWaterEfficiencyorClimateResilienceofAffordable Housing”,providesfundingfordirectloansandgrantstofundprojects thatimproveenergyorwaterefficiency,enhanceindoorairqualityor sustainability,implementtheuseofzero-emissionelectricity generation,low-emissionbuildingmaterialsorprocesses,energy storage,orbuilding electrificationstrategies,oraddressclimate resilience,ofeligibleHUD-assistedmultifamilyproperties”
Therearethreeawardtypes:Elements,LeadingEdge,and Comprehensive.
Elementsawardsareforownerswhoarealready“materiallyadvanced” inarecapitalizationtransactionandtheprojectincludestargetedutility efficiency,carbonemissionsreduction,renewableenergy,andclimate resiliencymeasures.
LeadingEdgeawardsareintendedforpropertiesintheplanningstages ofarecapitalizationeffort.
Comprehensiveawardsaredesignedforpeopleinterestedinimproving theirproperty’sutilityefficiencyandresiliencetoclimatehazardsbut maynotbereadyforarecapitalizationproject.
Elements:Fundingofupto$40Kperunitor$750Kperproperty.Up to20awardswith$140millionintotalfunding.
LeadingEdge:Fundingofupto$60Kperunitor$10millionper
Typeoffinancing(grant,loan,etc.)
Eligibilityrequirements
Exampleofpreviousrecipients
property. Upto100awardswith$400millioninfunding.
Comprehensive:Fundingofupto$80Kperunitor$20Millionper property.Upto300awardswith$1.47billioninfunding.
Grantsanddirectloansubsidy
Ownapropertyandeitherbe:inthebeginningstagesofplanninga recapitalizationproject,activelyplanningaproject,orworkingto updateyourexistinginfrastructuretocleanstandards.
Currentstatus(open,reviewing,closed) Elements:Closed
LeadingEdge:ClosedonNovember6,2023 Comprehensive:Closed
Upcomingkeydates(ifapplicable)
LeadingEdge:ClosedonNovember6
Potentialrelevantparties
Recommendationsforutilizingfunds
Privatebusinesses