Financing Puerto Rico's Renewable Energy Transition

FINANCING PUERTO RICO’S RENEWABLE ENERGY TRANSITION

February 2024 Princeton University School of Public and International Affairs

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Financing Puerto Rico’s Renewable Energy Transition February 2024

Jeremiah Chamberlin Brent Efron Charles Fraser Cydney Gardner-Brown Kathleen Hannick Liam Maguire Christian Perkins Justin Schuster Achinthya Sivalingam Maya T. Woser

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Table of Contents Report Authors

1

Executive Summary

3

Introduction

5

Report Background

9

Positionality Statement and Report Limitations

9

Federal Financing Opportunities

10

The Department of Energy

10

Grid Development Office

10

Office of State and Community Energy Programs

12

Loan Program Office

14

Office of Clean Energy Demonstrations

14

Office of Energy Efficiency and Renewable Energy

14

Office of Policy

15

The Department of the Treasury

15

The Department of Agriculture

17

Federal Emergency Management Agency

17

The Environmental Protection Agency

19

Greenhouse Gas Reduction Fund

20

The Department of Housing and Urban Development

21

Challenges and Recommendations

23

Investment Tax Credit Ineligibility

24

Challenge

24

Recommendation

25

Sustainable Coordination

26

Challenge

26

Recommendation

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The Puerto Rico Green Energy Trust

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Challenge

29

Recommendation

30

Tranche Process and Procurement

32

Challenge

32

Recommendation

34

Challenge

35

Recommendation

36

Concluding Remarks

41

Glossary and Acronyms

42

Endnotes

45

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Report Authors Jeremiah Chamberlin At Princeton, Jeremiah focuses on economic access, social mobility, and income inequality. Prior to his studies at SPIA, he worked for numerous community-focused nonprofits across the country with AmeriCorps.

Brent Efron Brent studies domestic climate policy implementation and is hoping to pursue a career in federal climate policy. He most recently worked in the Biden administration at the U.S. EPA as Special Assistant to the Associate Administrator for Policy.

Charles Fraser Charlie is an MPA candidate focusing on the economics, finance, and politics of the global energy transition. Before Princeton, he worked on international climate diplomacy and finance for the UK government.

Cydney Gardner-Brown Cydney is an MPA candidate and Charles B. Rangel International Affairs Fellow at Princeton University hailing from Detroit, Michigan. She focuses primarily on poverty, urban development, and diplomacy. Previously, she worked as the American Rescue Plan Act Implementation Fellow at Poverty Solutions based in Ann Arbor, Michigan. Following her time at Princeton, Cydney will be working at the US State Department as a US foreign service officer.

Kathleen Hannick Kathleen is an MPA candidate at Princeton University focusing on anti-poverty issues and strengthening the social safety net. Prior to Princeton, she worked as a Senior Research Assistant at the Brookings Institution’s Economic Studies program.

Liam Maguire Liam's policy interests lie at the intersections of climate change, migration, and emergency response.

Having worked with USAID's Bureau for Humanitarian Assistance and the UN's International Organization for Migration, he hopes to continue a career focused on environmental policy and the human impacts of climate change.

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Christian Perkins At Princeton, Christian focuses on energy economics and policy, and is interested in pursuing a career implementing U.S. government programs aimed at speeding the transition to renewable energy sources.

Prior to Princeton, he worked at the U.S. Environmental Protection Agency (EPA), and among other achievements, he was recently named an Aspen Institute Future Climate Leader.

Justin Schuster At Princeton, Justin focuses on climate change, diplomacy, and the Middle East. Previously, he worked as an Associate Director at the Council on Foreign Relations and as the Managing Director of a nonprofit newsroom covering the war in Syria.

Achinthya Sivalingam Achinthya is an MPA candidate at Princeton University interested in labor and international climate policy. Previously, she worked at the Gates Foundation and was an electoral and community organizer.

Maya T. Woser Maya is an MPA candidate at Princeton University, focusing on international development and climate change policy. She has research and program management experience across non-profits, multilateral organizations, and the private sector.

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Executive Summary In 2019, in the wake of the energy vulnerabilities exposed by the devastating Hurricane Maria, Puerto Rico passed the Puerto Rico Energy Public Policy Act (Act 17), an ambitious energy plan to take the island to 100 percent renewable energy by 2050. In the four years since the passing of the act, while notable progress has been made, Puerto Rico is still a long way from reaching its goal. Puerto Rico faces persistent challenges in achieving its energy transition goals, including recurrent climate-related disasters and financial strain linked to the government's recent bankruptcy.

This report focuses on the financing required to achieve the goals set by Act 17. The passing of the Inflation Reduction Act (IRA) in 2022 was a pivotal moment, signaling a significant shift in resource 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, with the Secretary of the Department of Energy (DOE) demonstrating a personal dedication to advancing Puerto Rico's objectives. Although federal funding is available, time is limited.

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 detailed overview of available federal funding sources by U.S. government agency. The second section addresses key challenges in accessing and mobilizing these funds and broader investment, in each case providing recommendations for progress moving forward. These include:

Recommendation

Addressed to

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.

Secretary Jennifer Granholm

Waive the current tax rule restrictions for the Investment Tax Credit to include Puerto Rico and the other territories.

Department of the Treasury

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Recommendation

Addressed to

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.

Governor Pedro Pierluisi

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.

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.

PREB, independent coordinator, LUMA

The Department of Energy should maintain its support for the procurement process, providing technical assistance and political direction where possible.

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

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Introduction Puerto Rico’s energy transition As of the 2022 financial year, only 3 percent of Puerto Rico’s utility-scale energy generation came from renewables. Electricity costs as of June 2023 remain elevated, ranging from 37 percent higher than mainland U.S. rates for residential consumers to 168 percent higher for industrial consumers. 1 The key driver for high 0F

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 mainland United States and federal law that typically prevents Puerto Rico from receiving imports from the U.S. mainland on non-US flagged ships. 2 1F

Table 1. Puerto Ricans have Higher Energy Costs Compared to Average Americans (cents/kWh)

Puerto Rico

National

Percent Difference

Residential

22.12

16.11

37%

Commercial

20.83

12.81

63%

Industrial

21.97

8.21

168%

Source: The Energy Information Administration, June 2023.

Nevertheless, Puerto Rico has become a leader in the solar revolution. Rooftop solar is rapidly expanding on the island. The industry is more than doubling every year, with 71,000 households connecting to rooftop solar panels between July 2021 and October 2022, accounting for 451 MW of renewable energy expansion.3 This growth has allowed Puerto Rico to reach one of the highest rates of rooftop solar penetration per household of any territory or state in the country. 4 2F

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A major hurdle to the expansion of green energy investments is the fact that Puerto Rico’s government emerged from a five-year bankruptcy in 2022. Deep financial issues have also severely impacted the island’s sole publicly-owned electricity utility, the Puerto Rico Electric Power Authority (PREPA), which is now the only major debtor still negotiating the terms of a plan to end its 2017 bankruptcy. The utility’s bankruptcy arose from a long-term failure to ensure electricity rates covered operational costs and required capital investments, coupled with its subsequent reliance on unsustainable levels of debt. 5 These financial issues have limited Puerto Rico’s borrowing capacity and its ability to finance investments in modern infrastructure and new clean energy capacity. 6, 7 4F

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Power sector reform To move toward a solvent, efficient, and clean power sector, reforms began in 2014 with the establishment of an independent energy regulator, the Puerto Rico Energy Bureau (PREB). From 2018, there has been a 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) has operated transmission and distribution and in July 2023, Genera PR began operating legacy thermal generation plants, which it is also responsible for progressively decommissioning as renewable sources are scaled up. 8, 9 In addition to its core regulatory functions, PREB has taken on most of the key planning and procurement responsibilities.

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Despite these reforms, power outages on the island, and in San Juan in particular, occur almost daily, and can last anywhere from a few minutes to many hours. LUMA has made incremental improvements in grid reliability and service, but public mistrust of the firm and of the broader electricity system remain high.

Ratepayers are skeptical of the system’s ability to deliver reliable power and complain about rising bills, as evidenced by recent protests in San Juan. 10, 11 This broad lack of confidence in service delivery may weaken community support for new renewable energy projects, which in turn undermines developer readiness to 9F

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propose new projects.

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Planning the energy transition The long-term financial issues and recent restructuring of the energy sector have increased the imperative for effective planning and coordination of the energy transition set out in Act 17, alongside the territory’s broader energy needs. To this end, since 2014, PREPA has been required to develop and regularly update an Integrated Resource Plan (IRP) that sets out a cost-minimizing roadmap to meet Puerto Rico’s electricity demand, incorporating its renewable energy goals and grid reliability and resiliency requirements. 12 1F

The most recent iteration of the IRP demonstrated the clear business case for urgently accelerating the deployment of renewable energy capacity in Puerto Rico. This prompted PREPA to initiate a centralized process to procure utility-scale solar and battery systems in February 2021, with 3,750 MW of solar capacity to be added through a series of requests for proposals (RFPs) issued across six tranches. 13 Unfortunately, 12F

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) for projects under the first tranche were only agreed in 2023, with the procurement process for the second and third tranches underway at the time this report was written. 14 To address some of the delays, PREB is taking a more active role in the process and has appointed an independent coordinator to lead on an accelerated timeline, 15 with project developers now able to access financing support from the DOE’s Loan Program Office (LPO). 16 13F

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At the same time, governmental and nongovernmental organizations are working to boost energy access and 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-scale projects in Puerto Rico, serving as useful proof-of-concept for the broader movement to increase resilience and reliability within the territory. 17, 18 16F

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Integrated planning will continue moving forward, with PREB leading the next iteration of the IRP, to be published in 2024. Alongside this Puerto Rico-led process, the DOE’s Grid Deployment Office (GDO), in partnership with six national laboratories, is leading the PR100 study to model scenarios that meet Puerto Rico’s renewable energy targets and achieve broader recovery and resiliency goals. While the final report is 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 utilityscale and rooftop solar solutions. 19 Recognizing these ongoing processes and the complexities of the various environmental and political concerns, our report remains agnostic about the optimum energy portfolio and trajectory to achieve the island’s targets. Instead, we assume that a diversified energy portfolio will be 18F

required and present financing solutions to accelerate their deployment.

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Federal support Accompanying the shift in policy ambition and planning, there has been an upswell in political support and a substantial influx of government funds available to finance the transformational investments needed to meet Puerto Rico’s energy transition goals. 20, 21 In the wake of the devastation brought by Hurricane Maria, 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 19F

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distribution infrastructure, and providing necessary updates to increase resilience while installing new technologies that advance the island’s clean energy goals.

In the Infrastructure, Investment, and Jobs Act (IIJA) and the Inflation Reduction Act (IRA), Congress approved hundreds of billions of dollars to advance the clean energy transition across the country, including many sources of funding that could directly benefit Puerto Rico. President Biden’s administration is championing Puerto Rico’s energy plan, appropriating an additional $1 billion to establish the Puerto Rico Energy Resilience Fund (PR-ERF) in February 2023. 22 The DOE’s Secretary Granholm has also visited the island many times during her tenure, setting the agenda for the swift execution and mobilization of funds to deliver on the territory’s goals. 23, 24 21F

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Report structure 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 discusses a series of key and additional challenges in accessing and mobilizing sources of financing for the energy transition in Puerto Rico, providing recommendations for change moving forward.

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Report Background 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 workshop focused on identifying avenues for financing the renewable energy transition in Puerto Rico according to the parameters outlined in Act 17.

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From September through December 2023, the workshop met with federal and Puerto Rican officials, 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 relevant federal legislation and programs, this report catalogs the availability and eligibility requirements of relevant funding sources. The report examines the main challenges to accessing those funding sources and provides a set of recommendations for addressing those challenges going forward.

Positionality Statement and Report Limitations 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 important historical and cultural context in Puerto Rico. Recognizing the limited technical expertise of the authors, we do not take a position on the breakdown of renewable energy portfolio investments that the island should pursue. We also do not make recommendations on other important issues that may significantly affect green energy projects—like permitting—as we deemed those outside the scope of this report.

That said, we met with a wide range of stakeholders involved in the energy transition to prepare this report, including dozens of experts working on Puerto Rico tax, energy, and environmental policy. The diverse perspectives consulted paint a broad picture of the opportunities and challenges that define the energy finance landscape for the island. This report provides a concise synthesis of the insights we collected from these meetings. We hope this report will help a wide range of stakeholders work toward Puerto Rico’s energy transition.

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Federal Financing Opportunities 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. Department of Agriculture (USDA), the U.S. Department of the Treasury (Treasury), and the EPA all have programs through the IRA and other legislation aimed at promoting green energy projects. In addition, FEMA recovery funds for the hurricanes are still being distributed in Puerto Rico and used to advance the island's energy goals.

This section of the report provides an overview of the federal funds related to renewable energy available to Puerto Rico by agency or department. For more detailed information on each funding source, please see the Funding Database.

The Department of Energy The DOE has dozens of funding options available for Puerto Rico to finance its energy transition. Here, we outline twenty of the largest programs categorized by their office within DOE.

Grid Development Office After Hurricane Fiona, the DOE’s GDO launched the PR-ERF in 2023 with $1 billion of Puerto Ricospecific 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 (up to $450 million) aims to support the installation of residential solar and battery systems in 30,000–40,000 very low-income, single-family households. This first tranche has been awarded to thirdparty residential deployers, community-sponsored residential deployers, and nonprofits that will work toward beneficiary education, training, and consumer protection. 26 The PR-ERF also includes funding 25F

to further intake processing (Solar Ambassador Prize) and to support education, training, and consumer protection. The second major tranche of funding through the PR-ERF will be announced in 2024. 27 26F

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 $9 million in grant funding, which could assist Puerto Rico system operators in conducting analytical studies and interregional transmission planning.

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The IRA allocated $300 million in grants to the Transmission Siting and Economic Development Grants Program (TSED), a program aimed at accelerating and strengthening electric transmission siting and permitting processes. TSED is designed to overcome state and local challenges to expanding transmission capacity while supporting communities along major new and upgraded lines. In Puerto Rico, LUMA should work to utilize these funds.

The IIJA established the Grid Resilience State and Tribal Formula Grant Program at DOE, which is designed to strengthen and modernize the power grid to increase its resilience to extreme weather and natural disasters exacerbated by climate change. 29 The program is set to award $2.3 billion from 2021 to 2026. This grant program cannot be used to fund new generation capacity—only improving grid 28F

resilience. 30 As part of the program, the Puerto Rico Central Office for Recovery, Reconstruction, and 29F

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 been published, entities already providing electricity services to rural and remote communities will be well placed to seek this funding. The Puerto Rico COR3 office should define a clear, public timeline for competitively selecting projects and awarding the funding as soon as possible.

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The Transmission Facility Financing Program established by the IRA provided $2 billion in funding to support the GDO’s direct loan authority 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 revitalize and strengthen transmission technology.

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The IIJA allocated $2.5 billion for the Transmission Facilitation Program—a revolving fund that uses federal dollars to build, upgrade, and expand large-scale interregional transmission lines and connection of microgrids across the United States. This type of funding is particularly important for Puerto Rico's energy transition as the island seeks to fully update its grid to meet energy goals.

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Another IIJA program is the Grid Resilience and Innovation Partnerships (GRIP), which includes 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. DOE will prioritize projects that produce the greatest community benefit by reducing the harm caused by severe weather and other disruptive events.

Next, GRIP includes $3 billion of Smart Grid Grants aimed at increasing the flexibility and reliability of the electric system. These funds focus on increasing capacity, preventing faults, integrating renewable 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, and distribution infrastructure to increase grid resilience and reliability. Selected projects will include investments to accelerate the interconnection of clean energy generators and the distribution of backup power.

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 under this program.

Office of State and Community Energy Programs The Renew America’s Schools program has $80 million in grants to promote clean energy improvements—such as energy efficiency, renewable energy, and alternative-fueled vehicle upgrades— at K-12 schools nationwide, focusing on high-need schools. Puerto Rican educational institutions should prepare to apply for the next round of funding, which opens in spring 2024.

Similarly, the Renew America’s Nonprofits program has $50 million in competitive grants “to reduce carbon emissions, improve health and safety, and lower utility costs at buildings owned and operated by 501(c)(3) nonprofits.” 34 Puerto Rican nonprofits should contact Southface Energy Institute—the relevant prime awardee—as soon as possible to submit pitches for subrecipient projects.

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Congress created the State Energy Program (SEP) amid the energy crisis of the 1970s to promote energy efficiency and renewable energy efforts. Today, “SEP provides funding and technical assistance to states, territories, and the District of Columbia to enhance energy security, advance state-led energy initiatives, and increase energy affordability.” In FY2023, the program has $60 million in formula grants at its disposal. 35 The Energy Policy Program of Puerto Rico’s Department of Economic Development and Commerce can capitalize on these funds.

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The Energy Efficiency and Conservation Block Grant (EECBG) Program, founded in 2007, has received $550 million from the IIJA. These formula and competitive grants “assist states, local governments, and Tribes in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency.” 36 Through this program, local governments can pursue vouchers for the purchase and installation of energy efficiency or clean energy equipment.

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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 Energy Policy Program of Puerto Rico’s Department of Economic Development and Commerce can capitalize on these funds.

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The Weatherization Assistance Program was created in 1976 to increase the energy efficiency of lowincome households. The IIJA recently provided an additional $25 million to the program, which is allocated to states and territories based on a DOE formula. Low-income Puerto Ricans are eligible for these funds, through Puerto Rico’s State Office of Public Energy Policy.

Loan Program Office The DOE LPO oversees the Title 17 Clean Energy Financing Program, which provides access to long-term debt for clean energy projects. 38 Originally part of the 2005 Energy Policy Act, the program was recently adopted into the IRA. In total, the Title 17 Clean Energy Financing program is authorized to guarantee loans of more than $300 billion. 39 Loan guarantees are provided on a project-by-project 37F

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basis, so there is no fixed allocation. The LPO has determined that renewable energy projects and battery energy storage systems procured through Puerto Rico’s centralized procurement plan (the tranche process, led by PREB) are eligible to apply for Title 17 loan guarantees under the Energy Investment Reinvestment (EIR) authority. 40, 41 The DOE should consider ways it can provide additional capacity support to PREB to maximize the impact of DOE’s loan guarantee support.

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Office of Clean Energy Demonstrations The Office of Clean Energy Demonstrations’ (OCED) Energy Improvements in Rural or Remote Areas Technical Assistance Program is a $1 billion grant that helps deploy community-driven clean energy solutions in rural and remote areas nationwide. Many areas of Puerto Rico are considered rural and could thus benefit from the grant.

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 technical approaches to distributing large amounts of distributed energy resources (DERs) to support communities. Utilities and for-profits that are working on DERs in Puerto Rico should capitalize on these funds.

Office of Energy Efficiency and Renewable Energy 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 training and professional development opportunities. At the same time, their hosts receive support to accelerate the transition to clean electricity and improve grid resiliency. Fellows support a wide range of projects covering topics including clean energy integration, expanding electric vehicle charging, Tribal energy sovereignty, distribution-level grid services, and grid resilience and energy planning in Puerto 14

Rico. While Puerto Rico has always been eligible under the program, it has recently received authorization for eligible entities to receive more fellows than any other state or territory. 42 41F

Office of Policy Communities Local Energy Action Program (LEAP 2.0) provides technical assistance to communities to develop and advance their own community-driven clean energy transition approach.

Specifically, LEAP 2.0 focuses on serving low-income, energy-burdened communities that experience environmental justice challenges and/or direct economic impacts from reducing their historical reliance on fossil fuels. The program will distribute $18.75 million worth of technical assistance to between twenty-four and thirty-two selected communities.

The Department of the Treasury The IRA provides almost $400 billion for energy and climate programs. Most of that funding—$259 billion—is tax incentives to corporations ($216 billion) and individuals ($43 billion). 43 To deliver these credits, the IRA established monetization mechanisms by adding new sections to the Internal Revenue Code. Section 6417 establishes elective pay and Section 6418 establishes transferability. The option of elective pay (also known as direct pay) enables eligible entities, such as tax-exempt and governmental entities that would not otherwise qualify for specific tax credits due to their lack of federal income tax liability, to take advantage of certain clean energy tax incentives. The second mechanism, known as 42F

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 exchange their tax credits for cash.

The IRA established or expanded two main types of tax credits: Production Tax Credits (PTCs) and ITCs. Under Treasury’s interpretation, Puerto Rican citizens and entities are currently only eligible for 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 production from eligible renewable sources, such as wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, marine, and hydrokinetic energy; (2) Clean Electricity PTC, which is a “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 Production Credit to foster the production of clean energy components such as solar and wind energy systems, inverters, batteries, and essential materials; (6) Clean Hydrogen PTC; and (7) Clean Fuel PTC.

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Bonus incentive credits can also be added to PTCs. These credits boost the generosity of the PTCs for projects in energy communities, projects that meet prevailing wage and apprenticeship standards, and/or projects that use “domestic content,” which means that the steel, iron, or manufactured products used in the project were manufactured in the United States. 44 43F

ITCs are the other type of tax credit available, which include five different credits that Puerto Rican citizens and entities are not eligible for, including (1) ITC for Energy Property which can be used for fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers, and combined heat 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. ITCs also have bonus incentive credits attached to them. In addition to the adders listed above for the PTCs, ITCs also have access to the Low-Income Communities Bonus Credit for small-scale solar and wind or clean electricity projects located on Native American Tribal land, federally subsidized housing, or in low-income communities.

While Puerto Rican individuals and companies are excluded from taking the ITCs, they could still benefit from ITCs via third-party owners (TPOs). A TPO who is not based in Puerto Rico but rather in the fifty states or Washington, DC, could claim the ITC on behalf of an individual or company in Puerto Rico. The TPO would then add those cost savings into the finance plan of the entity in Puerto Rico. TPOs have been a vital part of expanding solar energy in Puerto Rico and can continue to help expand the clean energy footprint on the island. Energy regulators and consumer-protection groups on the island can work together with TPOs to ensure that Puerto Rican citizens and entities are reaping as much of the ITC benefits as possible.

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The Department of Agriculture The IRA also established several programs at the USDA that the island can take advantage of to finance its energy transition. For example, the Powering Affordable Clean Energy Program (PACE) sets aside $1 billion to enable rural communities to access clean and reliable energy. Applicants can apply for loans and loan forgiveness, with a maximum loan including a forgivable portion of $100 million and a minimum of $1 million. PACE can be used for wind, solar, hydropower, geothermal, or biomass renewable energy projects. In Puerto Rico, eligible projects could include solar farms serving primarily rural areas, energy communities or micro-grid projects, utilities serving rural areas, and energy storage.

The Empowering Rural America (New ERA) program helps rural Americans transition to clean, affordable, and reliable energy. By reducing air and water pollution, New ERA funding improves health outcomes and lowers energy costs for people in rural communities. New ERA funding totals $9.7 billion and is available to member-owned, rural electric cooperatives through loans, grants, and/or loan refinancing. Puerto Rican organizations can take advantage of this funding given that most of the island is considered rural.

Finally, the IRA added over $2 billion to the Rural Energy for America (REAP) program that was established in the 2008 Farm Bill. The REAP adjustment under the IRA sets aside $145 million in guaranteed loans that can benefit small businesses and farmers in rural Puerto Rico.

Federal Emergency Management Agency FEMA provides funds to bolster Puerto Rico’s resilience to natural disasters. Some of the allocated resources can support renewable energy investments for utility providers, as well as territory and local governments. While most of FEMA’s public assistance programs need to be linked to damage or emergency recovery, some non-recovery funds can fund other mitigation investments.

FEMA funding is a reimbursement program. Funds are primarily transferred through the Request for Reimbursement (RFR) process, wherein beneficiaries submit Project Worksheet (PW) requests for approval.

In some cases, FEMA can arrange Requests for Advance (RFA). To submit a RFA, applicants should submit a contract of work, procurement plan, and ninety-day spend plan to FEMA. Final documentation and confirmation of payments will be due to FEMA ninety days after the disbursement of RFA funds.

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FEMA also facilitates Working Capital Advances (WCA). To apply for a WCA, applicants do not need a contract or procurement plan. However, the applicant must certify that the obligated permanent work project will comply with state and federal regulations. Under the WCA, FEMA will grant applicants a 25 percent advance payment for the federally obligated share of the project (which is 90 percent).

In 2020, three years after Hurricane Maria, the agency launched its FEMA Accelerated Awards Strategy (FAASt) for Puerto Rico, which gave PREPA $9.4 billion to fund expedited energy grid work and restorations caused by the storm. In 2023, $1.2 billion was also allocated for Hurricane Fiona recovery funds under the FAASt mechanism. The funding for grid infrastructure included microgrids, substation and transmission line restorations, and other projects to aid emergency recovery and advance the island’s transition to renewable energy. LUMA and Genera PR are eligible for reimbursements from the fund, despite PREPA remaining the legal subrecipient. 45 4F

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

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only help mitigate future disasters. These funds can support mitigation projects, including flood protection, retrofitting measures, or microgrid construction. 46 47 45F

46F

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 resilience and reduce suffering. FMA provided $800 million for resilience projects. 48 47F

The Environmental Protection Agency The EPA has allocated grants, supported by IRA funds, to bolster climate justice efforts within underserved communities. These grants are dedicated to financing projects that target the reduction of 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 communities to mitigate the impact of climate change.

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 subrecipients and subcontractors for multi-faceted projects addressing a range of pollution, climate change, and other priority issues.

The Climate Pollution Reduction Grants (CPRGs) provide “flexible support” for territories to design climate action plans that incorporate a variety of measures to reduce greenhouse gasses across six key sectors: electricity generation, industry, transport, buildings, agriculture, and waste management.

Nonprofit organizations, municipalities, and universities are eligible for sub-awards. The Puerto Rico 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 Climate Action Plan (CCAP), which qualifies as an eligible expenditure under the CPRG. EPA has already awarded PR-DNER funds to develop its climate action plans under the first phase of the CPRG program. PR-DNER should also apply for phase two (implementation) funds and work with stakeholders across sectors to ensure the climate action plan reaches a broad range of beneficiaries.

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Greenhouse Gas Reduction Fund The Greenhouse Gas Reduction Fund (GGRF) contains three main programs: Clean Communities Investment Accelerator (CCIA), National Clean Investment Fund (NCIF), and Solar for All. CCIA will deploy $6 billion through grants to two to seven hub nonprofits, providing funding and technical assistance to community lenders that are either public, quasi-public, or nonprofit. 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 Rican entities should be able to begin applying for funding in late 2024.

Through sub-grants or subsidies, the funding assistance will support the capitalization of these community lenders. The technical assistance grants will be designed to help their capacity. All projects funded under the CCIA must be spent in at least one of three priority areas: distributed energy generation, net-zero emissions buildings, and zero-emissions transportation. These projects must also be located in an EPA-designated low-income and disadvantaged community.

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 access capital to deploy clean technologies.

All funds must be spent on one of three priority project categories: distributed energy generation, netzero emissions buildings, and zero-emissions transportation. At least 40 percent of funds must be spent in EPA-designated low-income and disadvantaged communities. As with the CCIA, the deadline for these hub nonprofits to apply has passed. Funding should come online beginning in late 2024, at which point entities in Puerto Rico can apply for grants and loans.

Solar for All is a new $7 billion program created by the EPA to spur the nationwide deployment of residential distributed solar energy. Up to sixty awards will be made to entities across the country. The funded solar projects will either be residential or serve community solar projects. Under the statute, all program funds must be spent in low-income and disadvantaged communities. The deadline to apply for Solar for All funding has passed; however, should an entity in or serving Puerto Rico be awarded, Puerto Rican renters, homeowners, municipal governments, nonprofits, and for-profit organizations could ultimately benefit from this opportunity.

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The Department of Housing and Urban Development HUD is also a significant player in Puerto Rico’s disaster recovery efforts and financing its renewable energy transition. Given HUD’s experience with overseeing the Community Development Block Grant Program (CDBG), Congress often allocates the agency additional federal funding after disasters to provide affected areas with an accelerated influx of cash. Following Hurricanes Irma and Maria, 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 announced an additional $1.9 billion exclusively for improving the reliability, resiliency, efficiency, and sustainability of Puerto Rico’s energy grid, CDBG-DR Energy.

Most of this funding will meet immediate needs and repairs for homeowners, businesses, and infrastructure. However, a portion has been intentionally invested in programs focused on renewable energy. CDBG-DR Energy names the Puerto Rico Department of Housing as the grantee for the fund, which is implemented in two distinct programs, ER1 and ER2.

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 FAASt projects to be completed by PREPA. This program has a budget of $500 million from the CDBG-DR Energy allocation.

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, including renewable energy generation, combined heat and power systems, and battery energy storage systems. The remaining $1.3 billion CDBG-DR Energy budget has been apportioned to this program.

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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 program provides energy and water efficiency and resiliency installation to individuals receiving aid from 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 includes three award types: Elements, Leading Edge, and Comprehensive. Elements awards will provide $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 hazards but may not be ready for a recapitalization project.

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Challenges and Recommendations 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 structural impediments merging to create a complex mix of fiscal, technical, and economic constraints.

Many of these barriers directly impact Puerto Rico’s ability to fund or attract investment for a clean energy grid.

Puerto Rico’s clean energy ambition can and should serve as a model for the rest of the nation, and many of its challenges mirror those that exist on the mainland. In addition, some of the territory’s challenges to financing renewable energy stem from external constraints that are outside its control, such as its high exposure to natural disasters. Nevertheless, certain barriers are more specific to Puerto Rico, for which specific policy recommendations can be provided.

This chapter of the report is divided into two sections. The first provides policy recommendations related to five critical financing problem areas Puerto Rico faces: 1. Investment Tax Credit Ineligibility 2. Sustainable Coordination 3. The Green Energy Trust 4. Tranche Process and Procurement 5. Energy Efficiency The second section presents challenges that, while relevant, are less closely related to the financing of renewable energy. Barriers in this final section are therefore considered beyond the scope of this report, and no recommendations are presented. Nonetheless, the discussion provides meaningful context necessary to understand the broader energy transition landscape.

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Investment Tax Credit Ineligibility Challenge The ITC for rooftop solar, energy storage, and other renewable energy technology is one of the strongest incentives for homeowners and businesses to accelerate the transition away from fossil fuels. However, because of its territory status, Puerto Rican citizens and entities are ineligible to receive the benefit.

Treasury currently interprets tax rules relating to the ITC implemented under the IRA in a manner that excludes Puerto Rican entities from receiving the benefits. According to Treasury, the ITCs “cannot be used predominantly outside the United States (the fifty states and the District of Columbia) unless the property is owned by a US corporation or US citizen...Therefore, property used in the territories and owned by a territory government, or an entity created in or organized under the laws of a U.S. territory generally would not qualify.”48F49 Treasury’s current interpretation of the ITC statute leaves Puerto Ricans, local territorial government bodies, and other organizations headquartered within the territory ineligible for the ITC benefit. This ineligibility decreases access to financing opportunities that would otherwise fund rooftop solar, battery storage, and other activities necessary for the transition.

Specifically, the tax rules governing the IRA ITCs use section 50(b)(1) of the Internal Revenue Code to 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 24

exception for the territories. When issuing the Proposed Elective Pay Regulations, Treasury used its authority to clarify that “applicable entities” included territory governments for PTC. Using that same authority in the final regulation, Treasury can clarify that all IRA tax credits are eligible for elective pay and transferability.49F50

Recommendation The Secretary of Energy should push the Office of Tax Policy at Treasury as well as the White House to use their authority to waive the current tax restrictions for the ITC so it includes Puerto Rico and the other territories.

By providing an exception to section 50(b)(1), Treasury would allow territories to become eligible for the ITC’s elective pay and transferability options, which would not only extend these ITC benefits to Puerto Rico but also extend the Low Income Community Bonus Credit. Since nearly all of Puerto Rico would qualify as low-income, residents and entities could see the cost of eligible projects cut in half.

Given this, and in keeping with the policy intention of the IRA, the Office of Tax Policy should waive this provision.

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 cannot be made by the DOE directly, leveraging the agency’s soft power and colloquial authority on the energy transition in Puerto Rico should help prompt the administrative process necessary to implement a more inclusive reading of the statute.

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Sustainable Coordination Challenge Over the past year, the DOE has played a crucial role in convening and coordinating various stakeholders in the Puerto Rican energy sector. However, leadership within the Department, 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, largescale renewable energy penetration.

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.50F51 In its aftermath, President Biden designated Secretary Granholm to coordinate federal efforts “to help transform the entire system of Puerto Rico.”51F52 Over the past year, Secretary Granholm has prioritized the Puerto Rican energy transition within her department. To achieve this goal, she has established the Puerto Rican Grid Recovery and Modernization Team, led by Director Agustín Carbó-Lugo, and has visited the island several times since November 2022.52F53,53F54 According to a source at DOE, during these trips, the Secretary meets with key decision-makers from relevant federal and state government entities, including FEMA, 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 monitor the progress of ongoing projects and workstreams.

During meetings on the island, relevant government bodies and other stakeholders signaled appreciation for the extra push by DOE and the Secretary. However, the national political climate may make DOE’s role in this space unsustainable. With control of the House changing following the 2022 election, the DOE faces new scrutiny regarding the Secretary’s policy priorities.54F55 The upcoming presidential election also creates uncertainty for the role of the federal government in Puerto Rico after 2024. Should President Biden lose reelection, Secretary Granholm’s successor may be unwilling to prioritize Puerto Rico’s energy transition in the same way.

Despite playing a large role in pushing the clean energy agenda forward in Puerto Rico, the Secretary’s role within Puerto Rico’s internal affairs is limited by definition. For example, it is not the role of the 26

federal government to be involved in Puerto Rico’s local politics or land use policies. Where the DOE does not weigh in, Puerto Rican entities and other organizations taking a more ad hoc approach to financing the transition, which does little to speed the territory towards its renewable energy mandates.

As a result, across the landscape of actors invested in the renewable energy transition in Puerto Rico, there has been a gap in place of a central planning and coordinating entity.

Recommendation The DOE should support the development of a local, Puerto Rico-based entity that functions 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 with the right organizational setup and leadership.

Given the radical challenge to achieve a full transition to renewable energy by 2050, it’s critical to build out an institution to coordinate efforts. To our knowledge, there is no functioning organization that performs this role or can fill this gap. However, the Green Energy Trust, once set up, could take on this role. As a quasi-governmental, publicly-funded organization committed to advancing green energy on the island, the Green Energy Trust may be well positioned to act as a centralized, coordinating agency.

If this option is explored, it would require modifying and expanding the Green Energy Trust’s current mandate, as it is not technically designed to play an advocacy or coordinating function. There may also be other Puerto Rico-based organizations that are better suited to take on this role, or an entirely new organization may need to be established.

Some key functions associated with this coordinating organization (whether the Green Energy Trust or a different entity), 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.55F56 Further, in the funding application cycles that have passed, Puerto Rico has submitted applications for which the timeline and results are unknown.

Engaging relevant partners in the application process. The many actors in Puerto Rico's transition lack coherent leadership and coordination across their mandates. Bringing in an entity to increase efficiencies and identify and grow the coalition is critical to successfully executing the energy transition.

This also includes bringing grassroots, community-led organizations into the conversation, since they

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bring perspectives that are essential to informing an equitable and just transition. These groups are often smaller in size and hence find it more challenging to participate in ongoing processes and discussions.

Technical assistance for applications. Many applications for federal funding require technical knowledge regarding both economic outcomes and renewable energy technology. It is critical to build capacity to ease access to this information for small businesses and local governments to enable more robust applications.

Monitoring ongoing work and archiving efforts. It is unclear where the work toward 100 percent renewable energy stands at a high level across all actors. The next iteration of Puerto Rico’s IRP and the PR100 report are likely to provide comprehensive technical answers, but the financial and political hurdles and lessons learned will likely not be included. An organization must take stock of what has been done so far to chart a more realistic path for the future.

Liaising with federal offices. Much of the funding that Puerto Rico requires for the transition will 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 preparing organizations on the ground is critical. Tracking new regulations and new policies will also be to the benefit of organizations working in Puerto Rico.

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 updates on their work, communicate with one another, and create goals for future meetings.

This important function may be eliminated if there are changes to federal leadership or if Secretary Granholm’s visits become more sporadic for any other reason. If in different administrations there is an absence of federal leadership focused on Puerto Rico, a centralized, dedicated organization on the island should ensure that these important regular meetings take place to provide a space for stakeholders to engage, share updates and learnings, and harmonize their efforts.

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The Puerto Rico Green Energy Trust Challenge The Puerto Rico public green bank, the Puerto Rico Green Energy Trust, lacks the necessary resources and funding to act on its mission.

Act 17 called for the creation of a green bank broadly modeled after the New York and Connecticut green banks, as well as locally after the Puerto Rico Land and Science Trusts. The Green Energy Trust is supposed to provide incentives to support Puerto Rico’s residents, business owners, and government to invest in green energy in accordance with the renewable energy targets of Act 17.5657 According to Act 17, other key objectives of the Trust include but are not limited to: Promote the growth of green energy producers.

Encourage Puerto Rican consumers to become prosumers.

Educate the public about green energy.

Support pilot programs to increase accessibility and use of green energy sources.

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. ● Facilitate financing of green energy projects in small, medium, and micro-businesses.

Despite Act 17 “creating” the trust nearly five years ago, the Trust still has only one staff member (hired in 2023) and has yet to bring on an executive director.57F58 There is also currently no website. Addressing these key organizational challenges are imperative to it carrying out its statutory mandate.

In 2022, Governor Pierlusi pledged to seed the trust with $400-$500 million in funding made available through HUD’s CDBG-MIT.58F59, 59F60 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 Connecticut Green Bank found that for every $1 of public funds committed by the bank, it generated an additional $7 in private investment in the local economy.60F61 As of 2023, there were twenty-five active green banks across eighteen states and the District of Columbia, with over $9 billion mobilized in public and private capital since 2011.61F62 With the requisite resources, the Trust could become a major player 29

in Puerto Rico’s energy financing landscape. The Trust would also be a natural vehicle for receiving funding through multiple new programs created under the IRA. However, in its current state, there is little capacity to administer these new programs.

Recommendation The Governor should provide the Puerto Rico Green Energy Trust with the funds he promised in 2022. Secretary Granholm and others working in the Puerto Rico energy space should ensure this issue is brought to his attention.

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, the Trust must become operational as soon as possible, in large part to leverage its position to seek federal funding in support of its mission.

Becoming operational necessitates funding. The Governor promised to provide the Trust $400-$500 million in funding in 2022 but this has yet to be delivered. His office should expeditiously provide this support or at least some level of funding that would allow the organization to begin delivering on its legally mandated responsibilities.

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Given her prominent role in Puerto Rico’s energy sector, the Secretary of Energy and her staff should underscore the importance of getting the Trust up and running. Other stakeholders in Puerto Rico, including members of the private sector and energy justice organizations, should also advocate for the Green Trust to receive this funding.

The Green Energy Trust’s Board should mobilize rapidly to build out the organization’s administrative capacity and achieve its statutory mission. It should pay particular attention to utilizing funds through the Greenhouse Gas Reduction Fund to achieve this goal. There should also be an effort to provide as much benefit as possible to low-income communities in Puerto Rico.

If the Trust is to become a productive organization and achieve its numerous statutory objectives as laid out in Act 17, it needs to rapidly build its administrative capacity. Following the recent appointment of a CEO,62F63 the Trust's Board should support a process to rapidly recruit a full executive leadership team.

While staff data is not available for all green bank institutions in the states, a review of several websites suggests these organizations tend to have staff of at least a dozen, and in the case of the Rhode Island Green Bank, roughly fifty employees. The Trust's Board should act swiftly to complete the onboarding of the new CEO and, subsequently, other senior staff.

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 administer funding made available through the EPA’s GGRF. This is particularly important given the magnitude of funding available through GGRF, which could, in turn, allow the organization to achieve its other objectives and become a larger player in the Puerto Rico clean energy finance space.

Based on a conversation with Board members, we understand that the Trust was part of an application for the GGRF’s Solar for All program. Should it win this competitive grant process, staffing support will be needed almost immediately to support the development of a new, likely $100+ million program.

Announcements are expected from EPA in Spring 2024.

The GGRF also includes two other programs for which the Trust has not yet been able to apply, the CCIA and the NCIF. Together, in mid-2024, these EPA programs will provide over $20 billion to regional and national nonprofit financing organizations.63F64 These awarded organizations will then begin to provide both grants and loans to institutions like the Trust beginning in fall 2024. The scale of the funding suggests hundreds of millions of dollars could be made available for Puerto Rican entities 31

like the Trust beginning towards the end of 2024. While there is some time for the Trust to prepare to both apply for and administer funding under these programs, beginning these efforts now could provide a competitive advantage over other institutions in the mainland.

Act 17 states that the Trust should “establish program[s] or financially support projects that provide residents of low- and moderate-income communities with access to green energy.” We recommend that 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 under the GGRF, which have requirements that between 40 and 100 percent of funding be spent in low-income and disadvantaged communities.64F65 The White House’s Justice40 program or California’s CalEnviroScreen could serve as a guide for identifying communities and providing best practices.666, 5 6 67 Finally, after developing sufficient staff capacity for its statutory responsibility, the Trust could be a natural vehicle to carry out several additional responsibilities. Many of these possible responsibilities are outlined in the recommendation on sustainable coordination.

Tranche Process and Procurement Challenge Delays and disruptions to the centralized 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.

Since 2021, the government in Puerto Rico has pursued a centralized procurement process to deliver 3,750 MW of utility-scale solar photovoltaic generation capacity and 1,500 MW of battery storage. This process was recommended by the most recent iteration of the territory’s IRP, with the compelling economics of new utility-scale renewable generation offering lower costs for consumers, especially when compared to Puerto Rico’s existing expensive fossil fuel generation, and a pathway to meet the territory’s legally binding targets.67F68 The plan, put together by PREPA, was to competitively procure this capacity through a series of RFPs for private sector entities to develop, operate and maintain renewable energy projects. Six RFP tranches of between 500 and 1,000 MW were to be issued at six-month intervals between December 2020 and June 2023.669 8

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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.

PPOAs for projects under the first tranche were only approved in 2023, well over two years after the RFP was issued, with the second and third tranches initiated more than a year late.69F70 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.70F71 Overall developer and investor confidence is also likely to be negatively affected by the general lack of public confidence in the electricity sector and service delivery provided by PREPA, LUMA and other entities. In addition to this broad lack of market confidence, specific issues with the terms of the PPOAs offered by PREPA and the process it followed have severely delayed reaching financial close for tranche 1 projects and undermined the broader credibility of the process.71F72 These issues were exacerbated by rising equipment, supply chain and financing costs, which pushed developers to seek updated pricing in the terms of the tranche 1 PPOAs.773 2

Table 2. PREB Guidance for Procurement of Renewable Generation and Battery Storage Capacity Tranche

RFP Target Release

Actual or New Release Date

Solar PV or Equivalent Other Energy, MW Minimum Cumulative

4-hr Battery Storage Equivalent, MV Minimum Cumulative

1

Dec 2020

Feb 2021

1,000

1,000

500

500

2

Jun 2021

Dec 2022

500

1,500

250

750

3

Dec 2021

Feb 2023

500

2,000

250

1,000

4

Jun 2022

TBD

500

2,500

250

1,250

5

Dec 2022

TBD

500

3,000

125

1,375

6

Jun 2023

TBD

750

3,750

125

1,500

Note: The original and updated timeline for the procurement of renewable generation and battery storage capacity. This is a reproduction of FOMB’s table.

Source: Financial Oversight and Management Board. “Exhibit 2424 in 2023 Certified Fiscal Plan for the Puerto Rico Electric Power Authority.” June 23, 2023. https://oversightboard.pr.gov/fiscal-plans-2/.

There are now efforts to address these issues. PREB has become more directly involved, appointing an independent coordinator to lead the process for the subsequent tranches73F74, 75 and ordering an investigation into the persistent delays.7576 An accelerated timeline is being followed to partially 33

compensate for the delays so far. The DOE’s LPO has provided capacity support to ensure the bankability of the PPOAs, enabling projects under tranche 1 to progress. In July 2023, the DOE also announced that projects procured through tranches 1, 2, and 3 would be eligible to seek loan guarantee support through the Energy Infrastructure Reinvestment component of the LPO’s Title 17 Clean Energy Financing program.76F77 This support should boost market confidence and reduce financing costs, hopefully lowering bid prices for tranches that are currently under procurement.

Problems still persist. Long delays in the completion of LUMA’s grid interconnection studies are a key barrier, creating uncertainty about final costs for project developers and slowing the overall process.77F78 There is also a lack of transparency: this report’s authors were unable to easily find information on the current status of the procurement process online. There is very little, if any, current information on the dedicated website created by the independent coordinator.78F79 This is despite the fact that greater transparency and accountability are known to be key to building greater public trust in such a procurement process.780 9

Recommendation PREB and the independent coordinator should prioritize strengthening the credibility of the procurement process by increasing public transparency, accountability, and communication with all key stakeholders and in line with recognized best practices.80F81,81F82 Improving the procurement process will boost market confidence and attract more robust, competitive, and cost-effective proposals and private financing. Specific short-term priorities should include delivering a functional central website, providing regular announcements and issuing a detailed timeline that is kept updated and to which all stakeholders are publicly committed. PREB and LUMA should also work together to speed up interconnection studies in order to provide project developers with greater certainty about interconnection costs and ensure the agreed procurement timelines can be met.

The DOE should maintain its strong support for this procurement process and its timeline, providing technical assistance and political direction where possible.

Given the likely importance of Title 17 loan guarantees to the commercial viability of financing utilityscale renewable energy projects in Puerto Rico, the LPO’s engagement and coordination with project 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 support can be delivered.

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Energy Efficiency Challenge Puerto Rico’s progress in advancing its energy efficiency policy has been slow compared to other states and territories in the United States, but improvements could significantly reduce the energy demand on the island, decreasing blackouts and bringing down costs.

When the American Council for an Energy-Efficient Economy (ACEEE) reviewed the state of energy efficiency regulations, codes, and other initiatives in Puerto Rico in 2016, it ranked lower than over forty US states. While this was the last such review by ACEEE of Puerto Rico’s energy efficiency programs, it indicated there was significant room for improvement.

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.82F83 As Puerto Rico strives for high levels of renewable energy penetration, strong investment in energy efficiency today could pay large dividends down the road. Moreover, energy efficiency improvements would reduce energy costs for consumers, as well as the overall strain on the electricity grid. Such a reduction in load would lessen the likelihood of power disruptions.

Under Act 17, Puerto Rico is legally obligated to improve its energy efficiency by 30 percent by 2040.83F84 In pursuit of this goal, PREB put forward updated energy efficiency regulations in 2022.84F85 In these regulations PREB mandates that PREPA create and implement energy efficiency programs, yet federal

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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 update these regulations further.

Recommendation 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 maximize Puerto Rican energy efficiency.

PREPA has been mandated by PREB to “develop and offer energy efficiency programs”; these include services, initiatives, and education for customers and small businesses.85F86 Numerous federal programs are available to this end, particularly under the DOE’s Office of State and Community Energy Programs (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 income tax credits and incentives for homeowners, home builders, and commercial building owners for various kinds of energy efficiency improvements.86F87 Some of these programs are already active in Puerto Rico and have created positive benefits for thousands of people across the island.87F88 However, none of these federal programs or funding sources are referenced in Puerto Rico’s energy efficiency regulations, presumably because most of the available federal funding was introduced after Puerto Rico’s regulation was finalized. These federal programs are also not identified in any substantial manner in the most recent version of Puerto Rico’s IRP. Energy efficiency measures are essential if Puerto Rico is to reach 100 percent renewable energy by 2050, as these initiatives lower the total energy needs of consumers. As PREPA develops and implements energy efficiency programs, it should leverage federal funding to amplify the impact of these efforts. In addition, PREPA should seek to partner with SCEP on these endeavors in order to reduce the lead time required to get Puerto Rico’s energy efficiency programs operational and effective. PREB could ensure this work is undertaken by updating the 2022 regulations to reflect new federal funding.

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Additional Considerations and Structural Limitations Puerto Rico also faces challenges in its transition to renewable energy that are less directly related to its 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.

As in many states, Puerto Rico’s state and local permitting processes have become an obstacle in reaching its renewable energy mandates.

In conversations with representatives of clean energy developers and advocates, permitting issues continued to come up as a challenge for the financing and timely deployment of renewables in Puerto Rico. Others we met described the permitting process as no more of an obstacle than in any other state.

Regardless, research from the Brookings Institution suggests that permitting has become an obstacle to renewables nationwide.88F89 Unnecessarily bureaucratic permitting processes can obstruct the construction of clean energy generation, distribution, and transmission infrastructure at the pace and scale required.

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To address the concerns of clean energy investors, Puerto Rico's state and local governments may need to adopt more efficient approaches to expedite site selection and authorization of clean energy projects and their infrastructure. The current bureaucratic backlogs and unnecessary red tape often result in significant delays and additional costs, possibly leading to project termination.89F90 Streamlining the process could ensure the timely completion of clean energy projects and establish Puerto Rico as a leader in delivering the energy transition.

However, environmental and community protections should not be ignored in pursuit of expediting the deployment of clean energy.90F91 Certain states have begun to demonstrate ways to reconcile these concerns, such as New York's creation of the Office of Renewable Energy Siting, which combines the permit application and review process into one department.91F92 Similarly, Illinois passed legislation to standardize permitting for renewable energy facilities.92F93 Since financial inclusion rates are lower in Puerto Rico relative to many states on the mainland, individual Puerto Ricans may find it more difficult to access financing opportunities to support investments in renewable energy systems.

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 percent of households in Puerto Rico lack a checking or savings account, and some forty percent do not have a credit card. Many solar TPOs and government loan programs require individuals or households to have a minimum credit score. However, Puerto Rican residents face higher rates of financial hardship than many communities on the mainland, and access to financial inclusion is significantly lower.93F94 Lower financial inclusion on the island leads to less take-up of territory and federal-led programs meant to accelerate the transition to renewable energy.

Many environmentalists and activists within the agriculture sector continue to challenge largescale solar development, citing the protection of sensitive ecological areas and the unnecessary modification of otherwise arable land. Developers could do more to respond to the concerns of these groups, many of which include community members and farmers.

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.94F95 PREB, the body responsible for approving large-scale utility projects, has so far devoted 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 projects on fertile land. Puerto Rican officials have yet to find 38

the balance between renewable energy developers and these local communities and activists, but moving forward, this balance will be critical in ensuring a just energy transition.

Since the mid-1960s, the island has lost about seventy percent of its agricultural land, and Puerto Rico’s own 2016 Land Use Plan attributes the deficit in agricultural productivity in part to this arable land loss.95F96 While activists generally agree with the effort to transition away from fossil fuels, they point to 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 installation of rooftop solar, which they say reduces the need for large-scale projects that disrupt sensitive agricultural and historical sites.96F97 FEMA, PREB, and developers argue that while utility-scale energy projects do require more land, much of the available arable land in Puerto Rico is not currently producing crops. In 2018, the National Agricultural Statistics Service noted roughly 14 percent of agricultural land went unused, meaning no farming occurred on sites well-suited for such activities. When also accounting for land suitable for pasture or grazing, where solar farms could coexist alongside cattle, the percentage of unused land rose to over 50 percent.97F98 While some argue that expanding renewable energy on agricultural land will threaten Puerto Rico’s food security, others point out that the island already grows only a fraction of what it consumes.98F99 These challenges have already threatened the development of large-scale projects within the territory.

Regardless of either side’s arguments, the current lawsuit is likely to continue to further delay Puerto Rico’s transition to renewable energy. What is more, pushback from activists may continue via more legal battles, protests, and challenges to regulatory oversight in Puerto Rico related to the territory’s land use policy. For their part, government officials and developers alike could better address the 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 private investors are investing in community engagement efforts, which would likely reduce pushback to these projects.

39

40

Concluding Remarks Puerto Rico has set an ambitious and inspiring goal in committing to achieve 100 percent renewable energy by 2050. Although the territory is still at the beginning of this transition, the technical, economic, and political steps that must be taken are increasingly clear. It is also evident that stakeholders across Puerto Rico, including nonprofit community organizations, the energy authorities, and private actors, 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.

Given the likely importance of federal support for Puerto Rico’s transition, this report has focused on the sources of funding available from the federal government and how actors in Puerto Rico can access these sources most effectively. The report has also provided policy recommendations to address broader challenges to financing the deployment of renewable energy at the scale and pace required to achieve the territory’s goals. In this work, it is crucial that all stakeholders work together in a coordinated way toward a shared vision for Puerto Rico’s energy transition.

There is now an unprecedented amount of political and financial support from the federal government 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 currently exist. At the same time, this report also recognizes the need for a more robust approach to the transition: federal funding alone cannot address the delays, disruptions and lack of coordination that have so far left the territory with limited renewable energy capacity.

Some of the recommendations presented here are structural in nature, with such changes taking time to reap the desired outcomes. Other recommendations are political, and Secretary Granholm has a unique 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 progress toward a just and sustainable energy transition, transforming the territory into a green energy leader within the United States.

41

Glossary and Acronyms ACEEE

American Council for an Energy-Efficient Economy

Act 17

The Puerto Rico Energy Public Policy Act

BRIC

Building Resilient Infrastructure Communities Grant Program

CBO

Community-based Non-profit Organization

CCAP

Comprehensive Climate Action Plan

CCIA

Clean Communities Investment Accelerator

CDBG

Community Development Block Grant Program

CDBG-DR

Community Development Block Grant Disaster Recovery

CDBG-MIT

Community Development Block Grant Mitigation Funding

CEWRI

Community Energy and Water Resilience Installations Program

CFPB

U.S. Consumer Financial Protection Bureau

CPRG

Climate Pollution Reduction Grants

COR3

Puerto Rico Central Office for Recovery, Reconstruction, and Resiliency

DOE

U.S. Department of Energy

EECBG

Energy Efficiency and Conservation Block Grant

EERE

Department of Energy Office of Energy Efficiency and Renewable Energy

EIR

Energy Investment Reinvestment

EPA

U.S. Environmental Protection Agency

FAASt

FEMA Accelerated Awards Strategy

FEMA

Federal Emergency Management Administration

FMA

Flood Mitigation Assistance

FOA

Funding Opportunity Announcements

FOMB

Financial Oversight and Management Board for Puerto Rico

FY

Fiscal Year

GDO

Department of Energy’s Grid Deployment Office

GGRF

Greenhouse Gas Reduction Fund

GRIP

Grid Resilience and Innovation Partnerships 42

HMGP

Hazard Mitigation Grant Program

HUD

U.S. Department of Housing and Urban Development

HVAC

heating, ventilation, and air conditioning

IIJA

Infrastructure, Investment, and Jobs Act

IRA

Inflation Reduction Act

IRP

Integrated Resource Plan

IRS

U.S. Internal Revenue Service

ITC

Investment Tax Credit

LEAP

Communities Local Energy Action Program

LPO

Loan Program Office

LUMA

LUMA Energy

MSA

Metropolitan Statistical Area

NCIF

National Clean Investment Fund

New ERA

Empowering Rural America

NOI

Notice of Intent

OCED

Department of Energy’s Office of Clean Energy Demonstrations

PACE

Powering Affordable Clean Energy Program

PCAP

Priority Climate Action Plan

PPOA

Power Purchase and Operating Agreement

PR

Puerto Rico

PREB

Puerto Rico Energy Bureau

PREPA

Puerto Rico Electric Power Authority

PR-DNER

Puerto Rico Department of Natural and Environmental Resources

PR-ERF

Puerto Rico Energy Resilience Fund

PTC

Production Tax Credit

PW

Project Worksheet

REAP

Rural Energy for America

REIC

Renewable Energy Installation Company

RFA

Request for Advance 43

RFP

Request for Proposal

RFR

Request for Reimbursement

RLF

Revolving Loan Fund

R3

Home Repair, Reconstruction or Relocation Program

SCEP

Department of Energy’s Office of State and Community Energy Programs

SEP

Department of Energy's State Energy Program

TPO

Third-party owners

Treasury

U.S. Department of the Treasury

TSED

Transmission Siting and Economic Development Grants Program

USDA

US. Department of Agriculture

WCA

Working Capital Advances

WEMSE

Wholesale Electricity Market Studies and Engagement Program

44

Endnotes 1

U.S. Energy Information Administration. Puerto Rico Territory Energy Profile, www.eia.gov/state/print.php?sid=RQ. Accessed 19 Nov. 2023.

2

Mueller, Julia. “Puerto Rico Gets Jones Act Waiver for Liquefied Natural Gas Shipments .” The Hill, The Hill, 18 Oct. 2022, thehill.com/homenews/3692392-puerto-rico-gets-jones-act-waiver-for-liquified-natural-gas-shiptments/.

3

LUMA. “History First: LUMA launches next-generation battery energy sharing initiative to improve service reliability across Puerto Rico.” November 2, 2023. https://lumapr.com/news/historic-first-luma-launches-next-generationbattery-energy-sharing-initiative-to-improve-service-reliability/?lang=en.

4

Wyss, Jim. “Why Tiny Solar Projects Play an Outsized Role in Powering Puerto Rico.” Bloomberg.com, 31 May 2022, www.bloomberg.com/news/articles/2022-05-31/how-home-solar-power-protects-puerto-rico-fromblackouts?leadSource=uverify percent20wall. Accessed 9 Dec. 2023.

5

Financial Oversight and Management Board and Kobre and Kim LLP. “Independent Investigator’s Final Investigative Report.” August 20, 2018. https://oversightboard.pr.gov/debt/.

6

Financial Oversight and Management Board. “2023 Certified Fiscal Plan for the Puerto Rico Electric Power Authority.”

June 23, 2023, https://oversightboard.pr.gov/fiscal-plans-2/.

7

U.S. Senate Join Economic Committee. “Investing in Puerto Rico’s Clean Energy Future.” November 17, 2023. https://www.jec.senate.gov/public/index.cfm/democrats/issue-briefs?id=DE690FF9-6785-49ED-AD9EDECC497836BB.

8

Chris Galford. “LUMA Energy takes over operation of Puerto Rico’s electric transmission, distribution system.” Daily Energy Insider. June 2, 2021. Accessed November 24, 2023. https://dailyenergyinsider.com/news/30526-lumaenergy-takes-over-operation-of-puerto-ricos-electric-transmission-distribution-system/.

9

AAFAF. “Genera PR tapped to run Puerto Rico’s energy generation.” Puerto Rico Fiscal Agency and Financial Advisory Authority. January 2023. Accessed November 24, 2023. https://aafaf.pr.gov/press-room-articles/genera-prtapped-to-run-puerto-ricos-energy-generation/.

10

Reuters. “Hundreds Protest to Demand Puerto Rico Scrap Contract with Power Grid Operator.” Reuters, 21 July 2022, www.reuters.com/world/americas/hundreds-protest-demand-puerto-rico-scrap-contract-with-power-gridoperator-2022-07-20/.

11

Israel Meléndez Ayala. “¡Basta de Apagones! The Rot in Puerto Rico Runs Deeper Than Its Disastrous Power Company.” New York Times. September 22, 2022. https://www.nytimes.com/2022/09/22/opinion/puertorico-fiona-power-luma.html.

12

Puerto Rico Electric Power Authority, Puerto Rico Integrated Resource Plan 2018-2019, June 7, 2019, https://aeepr.com/es-pr/QuienesSomos/Paginas/ley57/Plan-Integrado-de-Recursos.aspx.

45

13

Puerto Rico Energy Bureau. “Final Resolution and Order on the Puerto Rico Electric Power Authority’s Integrated Resource Plan (CEPR-AP-2018-0001).” August 23, 2020. Pp. 263-9. https://energia.pr.gov/wpcontent/uploads/sites/7/2020/08/AP20180001-IRP-Final-Resolution-and-Order.pdf.

14

Center for New Economy. “Puerto Rico Electric Power Authority Update.” September 11, 2023. https://grupocne.org/2023/09/11/puerto-rico-electric-power-authority-update/.

15

Puerto Rico Energy Bureau. “Resolution and Order: Appointment of Tranche 2 Independent Coordinator.” January 27, 2022. https://energia.pr.gov/wp-content/uploads/sites/7/2022/01/20220127-MI20200012-Resolution-andOrder.pdf.

16

Department of Energy, Notice to Applicants on LPO Determination of Eligibility for Puerto Rico Projects Applying Under the Energy Infrastructure Reinvestment Program, July 21, 2023, https://www.energy.gov/lpo/articles/noticeapplicants-lpo-determination-eligibility-puerto-rico-projects-applying-under.

17

Environmental Defense Fund. Groundbreaking Clean Energy Pilot Brings Reliable Energy to the Island Municipality of Culebra in Puerto Rico. April 19, 2022. https://www.edf.org/media/groundbreaking-clean-energy-pilot-bringsreliable-energy-island-municipality-culebra-puerto.

18

RMI. “Resiliencia Comunitaria In Puerto Rico.” Accessed December 11, 2023. https://rmi.org/community-energyresilience-initiative/.

19

Department of Energy, PR100 One-Year Progress Update: Preliminary Modeling Results and High-Resolution Solar and Wind Data Sets, January 23, 2023, https://www.nrel.gov/docs/fy23osti/85126.pdf.

20

White House. “Fact sheet: Biden-⁠Harris Administration Steadfast in Support of Puerto Rico’s Renewal Biden-⁠Harris Administration Steadfast in Support of Puerto Rico’s Renewal.” June 26, 2023. Accessed November 24, 2023. https://www.whitehouse.gov/briefing-room/statements-releases/2023/06/26/fact-sheet-biden-harrisadministration-steadfast-in-support-of-puerto-ricos-renewal/.

21

Department of Energy. “Puerto Rico Grid Recovery and Modernization.” DOE Grid Deployment Office. Accessed November 24, 2023. https://www.energy.gov/gdo/puerto-rico-grid-recovery-and-modernization#:~:text=Puerto percent20Rico percent20Energy percent20Resilience percent20Fund,and percent20disadvantaged percent20households percent20and percent20communities.

22

Department of Energy. “Puerto Rico Energy Resilience Fund.” DoE Grid Deployment Office. Accessed November 24, 2023. https://www.energy.gov/gdo/puerto-rico-energy-resilience-fund.

23

Department of Energy. “Readout of Secretary Granholm's March Visit to Puerto Rico.” March 31, 2023. Accessed November 24, 2023. https://www.energy.gov/articles/readout-secretary-granholms-march-visit-puerto-rico.

24

Department of Energy. “Readout of Secretary Granholm's Recent Visit to Puerto Rico.” August 4, 2023. Accessed November 24, 2023. https://www.energy.gov/articles/readout-secretary-granholms-recent-visit-puerto-rico.

25

Eduardo Bhatia is the John L Weinberg/Goldman Sachs & Co. Visiting Professor and Visiting Lecturer in Public and International Affairs at the Princeton School of Public and International Affairs

46

26

https://www.energy.gov/gdo/PRFOA2023

27

“Puerto Rico Energy Resilience Fund.” Energy.gov, n.d. https://www.energy.gov/gdo/puerto-rico-energy-resiliencefund.

28

“Wholesale Electricity Market Studies and Engagement Program.” Energy.gov, n.d. https://www.energy.gov/gdo/wholesale-electricity-market-studies-and-engagement-program.

29

Department of Energy. “Grid Resilience State and Tribal Formula Grant Program.” DOE Grid Deployment Office.

2023. Accessed November 24, 2023. https://www.energy.gov/gdo/grid-resilience-statetribal-formula-grantprogram.

30

Department of Energy. “Frequently Asked Questions: Grid Resilience Formula Grants to States and Indian Tribes IIJA Section 40101(d).” June 21, 2023. Accessed November 24, 2023. https://netl.doe.gov/sites/default/files/202306/40101d percent20Frequently percent20Asked percent20Questions percent20Updated percent20ALRD percent207.pdf.

31

Department of Energy. “Fact Sheet - Grid Resilience State and Tribal Formula Grants: Puerto Rico.” 2023. Accessed November 24, 2023. https://www.energy.gov/sites/default/files/2023-09/082123_Grid percent20Resilience percent20State percent20and percent20Tribal percent20Formula percent20Grants percent20Fact percent20Sheet_Puerto percent20Rico percent20English.pdf.

32

Department of Energy. “Biden-Harris Administration Invests Over $7 Million to Improve the Resilience of Puerto Rico’s Electric Grid.” July 31, 2023. Accessed November 24, 2023. https://www.energy.gov/articles/bidenharris-administration-invests-over-7-million-improve-resilience-puerto-ricos.

33

Department of Energy. “Transmission Facility Financing.” Energy.gov, n.d. https://www.energy.gov/gdo/transmissionfacility-financing.

34

“Renew America’s Nonprofits.” Energy.gov, n.d. https://www.energy.gov/scep/renew-americas-nonprofits.

35

“About the State Energy Program.” Energy.gov, n.d. https://www.energy.gov/scep/about-state-energy-program.

36

“Energy Efficiency and Conservation Block Grant Program.” Energy.gov, n.d. https://www.energy.gov/scep/energyefficiency-and-conservation-block-grant-program.

37

“Energy Efficiency Revolving Loan Fund Capitalization Grant Program.” Energy.gov, n.d. https://www.energy.gov/scep/energy-efficiency-revolving-loan-fund-capitalization-grant-program.

38

Department of Energy. “Title 17 Clean Energy Financing.” 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/title-17-clean-energy-financing.

39

Department of Energy. “Title 17 Clean Energy Financing.”

40

Department of Energy. “Energy Infrastructure Reinvestment.” 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/energy-infrastructure-reinvestment.

47

41

Department of Energy. “Notice to Applicants on LPO Determination of Eligibility for Puerto Rico Projects Applying Under the Energy Infrastructure Reinvestment (EIR) Program.” July 21, 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/articles/notice-applicants-lpo-determination-eligibility-puerto-rico-projectsapplying-under.

42

“Clean Energy Innovator Fellowship.” n.d. Energy.Gov. Accessed November 23, 2023. https://www.energy.gov/eere/clean-energy-innovator-fellowship.

43

Badlam, J., Jared Cox, Adi Kumar, Nehal Mehta, Sara O’Rourk, and Julia Silvis. (2022, October 24). What’s in the Inflation Reduction Act (IRA) of 2022. https://www.mckinsey.com/industries/public-sector/our-insights/theinflation-reduction-act-heres-whats-in-it

44

IRS. (Nov. 16, 2023). Credits and deductions under the Inflation Reduction Act of 2022 https://www.irs.gov/creditsand-deductions-under-the-inflation-reduction-act-of-2022

45

FEMA. “FEMA Accelerated Awards Strategy (FAAST).” FEMA.gov, June 2, 2022. https://www.fema.gov/about/reports-and-data/faast.

46

FEMA. 2023. “Hazard Mitigation Grant Program (HMGP).” FEMA. https://www.fema.gov/grants/mitigation/hazardmitigation.

47

Puerto Rico Central Office for Recovery, Reconstruction, and Resiliency. n.d. “Puerto Rico Disaster Recovery Transparency Portal.” Puerto Rico Disaster Recovery Transparency Portal - COR3. Accessed January 7, 2024. https://recovery.pr.gov/en/recovery-programs/hazard-mitigation-assistance.

48

FEMA. 2023. “Building Resilient Infrastructure and Communities.” FEMA. https://www.fema.gov/grants/mitigation/building-resilient-infrastructure-communities.

49

IRS. 2023. “Elective Pay and Transferability Frequently Asked Questions: Elective Pay.” “https://www.irs.gov/creditsdeductions/elective-pay-and-transferability-frequently-asked-questions-elective-pay

50

Huang C-C, Baneman R (2023) Recommendations for Guidance Regarding Elective Payment of Applicable Credits and Transfer of Certain Credits. In: Tax Law Center at NYU Law.

51

Tucker, Emma. 2022. “Behind the Blackout Triggered by Hurricane Fiona Is a Long-Embattled History of Puerto Rico’s Weak and Outdated Electrical Grid.” CNN. October 1, 2022. https://www.cnn.com/2022/10/01/us/hurricanefiona-puerto-rico-electrical-grid/index.html.

52

The White House. 2022. “Remarks by President Biden on Hurricane Fiona Response and Recovery Efforts.” The White House. October 4, 2022. https://www.whitehouse.gov/briefing-room/speeches-remarks/2022/10/03/remarksby-president-biden-on-hurricane-fiona-response-and-recovery-efforts/.

53

“Puerto Rico Grid Recovery and Modernization.” n.d. Energy.Gov. Accessed November 23, 2023. https://www.energy.gov/gdo/puerto-rico-grid-recovery-and-modernization.

54

“Agustín F. Carbó-Lugo | LinkedIn.” n.d. Accessed November 23, 2023. https://www.linkedin.com/in/acarbolugo/.

48

55

“E&C GOP Probe Energy Secretary on Frequent International Travel.” n.d. House Committee on Energy and Commerce. Accessed November 23, 2023. https://energycommerce.house.gov/posts/energycommerce.house.gov.

56

See section on financing for more details.

57

“Puerto Rico Energy Public Policy Act.” 2019. https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/2ingles/17-2019.pdf

58

This is according to a conversation with members of the Green Trust Board in October 2023.

59

Pierluisi, Pedro. 2022. “Hon. Pedro R. Pierluisi, Written Submission, U.S. House of Representatives Committee on Natural Resources Full Committee Hearing: Puerto Rico’s Post-Disaster Reconstruction and Power Grid Development.” Government of Puerto Rico, Office of the Governor. chromeextension://efaidnbmnnnibpcajpcglclefindmkaj/https://democratsnaturalresources.house.gov/imo/media/doc/Governor%20Pedro%20Pierluisi,%20Testimony%20%20FC%20OIA%20Ovr%20Hrg%2011.17.22.pdf Note: According to this source the governor promised $500 million. The next source suggests $400 million.

60

“BNamericas - Puerto Rico Appoints the Board of Directors ...” n.d. BNamericas.Com. Accessed December 3, 2023. https://www.bnamericas.com/en/news/puerto-rico-appoints-the-board-of-directors-of-the-green-energy-trust.

61

“About Us - CT Green Bank | Accelerating Green Energy Adoption in CT.” 2022. Www.ctgreenbank.com. May 30, 2022. https://www.ctgreenbank.com/about-us/.

62

“Our Impact.” Coalition for Green Capital. https://coalitionforgreencapital.com/our-impact/.

63

Nesi, Ted. “Gorbea Tapped to Lead Energy Nonprofit in Puerto Rico.” WPRI.com, 5 Feb. 2024, www.wpri.com/news/politics/gorbea-tapped-to-lead-energy-nonprofit-in-puertorico/#:~:text=PROVIDENCE%2C%20R.I.%20(WPRI)%20%E2%80%94. Accessed 19 Feb. 2024.

64

See Funding Database.

65

US EPA, OA. 2023. “Greenhouse Gas Reduction Fund.” Collections and Lists. February 1, 2023. https://www.epa.gov/greenhouse-gas-reduction-fund.

66

“Justice40 Initiative | Environmental Justice.” n.d. The White House. Accessed December 5, 2023. https://www.whitehouse.gov/environmentaljustice/justice40/.

67

August, Laura. 2021. “CalEnviroScreen 4.0.” Text. OEHHA. September 20, 2021. https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-40.

68

Puerto Rico Electric Power Authority. “Puerto Rico Integrated Resource Plan 2018-2019.” June 7, 2019. https://aeepr.com/es-pr/QuienesSomos/Paginas/ley57/Plan-Integrado-de-Recursos.aspx.

49

69

Puerto Rico Energy Bureau. “Final Resolution and Order on the Puerto Rico Electric Power Authority’s Integrated Resource Plan (CEPR-AP-2018-0001).” August 23, 2020. Pp. 263-9. https://energia.pr.gov/wpcontent/uploads/sites/7/2020/08/AP20180001-IRP-Final-Resolution-and-Order.pdf.

70

Center for New Economy. “Puerto Rico Electric Power Authority Update.” September 11, 2023. https://grupocne.org/2023/09/11/puerto-rico-electric-power-authority-update/.

71

Institute for Energy Economics and Financial Analysis. “Fiscal plan for Puerto Rico’s electricity system edges somewhat closer to reality.” July 5, 2023. Accessed November 26, 2023. https://ieefa.org/resources/fiscal-plan-puerto-ricoselectricity-system-edges-somewhat-closer-reality.

72

Financial Oversight and Management Board, 2023 Certified Fiscal Plan for the Puerto Rico Electric Power Authority, June 23, 2023, https://oversightboard.pr.gov/fiscal-plans-2/.

73

Financial Oversight and Management Board. “Statement: Renewable PPOA Amended Contracts.” September 14, 2023. https://drive.google.com/file/d/1QDsWzY0d6Jyr-a-PNykiZfPpuIhiDaGE/view.

74

Puerto Rico Energy Bureau. “Resolution and Order: Appointment of Tranche 2 Independent Coordinator.” January 27, 2022. https://energia.pr.gov/wp-content/uploads/sites/7/2022/01/20220127-MI20200012-Resolution-andOrder.pdf.

75

Accion Group. “Current Accion Group Engagements.” Accessed November 26, 2023. https://acciongroup.com/current-projects/.

76

Financial Oversight and Management Board. “2023 Certified Fiscal Plan for the Puerto Rico Electric Power Authority.”

June 23, 2023. https://oversightboard.pr.gov/fiscal-plans-2/.

77

Department of Energy. “Notice to Applicants on LPO Determination of Eligibility for Puerto Rico Projects Applying Under the Energy Infrastructure Reinvestment (EIR) Program.” DOE Loan Program Office. July 21, 2023. https://www.energy.gov/lpo/articles/notice-applicants-lpo-determination-eligibility-puerto-rico-projectsapplying-under.

78

Puerto Rico Energy Bureau. “Informative Motion Regarding Update on LUMA Interconnection Studies Policy Change, Amendment to Closing Date, T1 Project Permitting Process and Request for Order Directing LUMA to Take Specified Actions to Minimize Further Delays.” February 28, 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

Puerto Rico Energy Bureau and Accion Group. “PREB RFP Home Page.” Accessed November 26, 2023. https://prebrfp.accionpower.com.

80

OECD. “Recommendation of the Council on Public Procurement.” 2015. https://www.oecd.org/gov/publicprocurement/OECD-Recommendation-on-Public-Procurement.pdf.

81

OECD. “Recommendation of the Council on Public Procurement.” 2015. https://www.oecd.org/gov/publicprocurement/OECD-Recommendation-on-Public-Procurement.pdf.

50

82

Vinay Sharma and Felipe Goya. “Re-booting public procurement to revitalize the 'social contract' of governance.” World Bank. June 7, 2021. https://blogs.worldbank.org/governance/re-booting-public-procurement-revitalize-socialcontract-governance.

83

“As Grid Decarbonizes, Energy Efficiency More Critical than Ever to Reduce Costs | ACEEE.” n.d. Accessed November 25, 2023. https://www.aceee.org/press-release/2023/06/grid-decarbonizes-energy-efficiency-more-critical-everreduce-costs.

84

“Puerto Rico Energy Public Policy Act.” 2019. https://bvirtualogp.pr.gov/ogp/Bvirtual/leyesreferencia/PDF/2ingles/17-2019.pdf

85

Puerto Rico Energy Bureau. 2022. “Regulation for Energy Efficiency.” March 25, 2022. https://energia.pr.gov/wpcontent/uploads/sites/7/2022/04/Reglamento-9367-Regulation-for-Energy-Efficiency.pdf.

86

Ibid, pg. 19.

87

“Federal Income Tax Credits and Incentives for Energy Efficiency.” Energy Star, 2022. https://www.energystar.gov/about/federal_tax_credits.

88

“State and Community Energy Programs Project Map – Puerto Rico.” n.d. Department of Energy. Accessed December 2, 2023. https://www.energy.gov/scep/articles/state-and-community-energy-programs-project-map-puerto-rico.

89

Sud, Rayan, and Sanjay Patnaik. 2022. “How Does Permitting for Clean Energy Infrastructure Work?” Brookings. https://www.brookings.edu/articles/how-does-permitting-for-clean-energy-infrastructure-work/.

90

Ricketts, Sam, Chris Bast, and Hannah Argento-McCurdy. 2023. “Implementing America’s Clean Energy Future.”

Center for American Progress (blog). September 14, 2023. https://www.americanprogress.org/article/implementing-americas-clean-energy-future/.

91

Bozuwa, Johanna, and Dustin Mulvaney. n.d. “A Progressive Take on Permitting Reform: Principles and Policies to Unleash a Faster, More Equitable Green Transition.” Roosevelt Institute. Accessed November 25, 2023. https://rooseveltinstitute.org/publications/a-progressive-take-on-permitting-reform/.

92

“New York State Announces Passage of Accelerated Renewable Energy Growth and Community Benefit Act as Part of 2020-2021 Enacted State Budget.” n.d. NYSERDA. Accessed November 25, 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, Amy Antoniolli, and Jane Montgomery. 2023. “Illinois Standardizes Permit Laws For Solar and Wind Energy Facilities.” January 30, 2023. https://www.natlawreview.com/article/illinois-enacts-new-law-tostandardize-local-permitting-renewable-energy-facilities.

94

Malaiyandi –, Sangeetha. 2023. “Financial Struggles in Puerto Rico Bite Deeper than the Rest of the United States.”

Consumer Financial Protection Bureau. July 27, 2023. https://www.consumerfinance.gov/aboutus/blog/financial-struggles-in-puerto-rico-bite-deeper-than-the-rest-of-the-united-states/.

51

95

Coto, Danica. “Environmentalists Sue Puerto Rican Government over Location of Renewable Energy Projects.” AP News, 14 Aug. 2023, apnews.com/article/puerto-rico-lawsuit-renewable-energy-projectsa8ff7b663d708227e84a43afde2cb612.

96

Junta de Planificación. Plan De Uso De Terrenos, Guías De Ordenación Del Territorio; Puerto Rico Planning Board: San Juan, Puerto Rico, 2015; p. 220.

97

Santiago, Ruth, et al. “The Devastating Costs of Puerto Rico’s Solar ‘Farms.’” NACLA, 17 Feb. 2022, nacla.org/puertoUnited States Department of Agriculture. 2020. “2017 Census of Agriculture, Puerto Rico (2018) Island and Regional Data.” AC-17-A-52. https://www.nass.usda.gov/Publications/AgCensus/2017/Full_Report/Outlying_Areas/Puerto_Rico/prv1.pdf

98

99

Rodríguez-Cruz, Luis Alexis, Maya Moore, and Meredith T. Niles. 2021. “Puerto Rican Farmers’ Obstacles Toward Recovery and Adaptation Strategies After Hurricane Maria: A Mixed-Methods Approach to Understanding Adaptive Capacity.” Frontiers in Sustainable Food Systems 5. https://www.frontiersin.org/articles/10.3389/fsufs.2021.662918.

52

Financing Puerto Rico’s Renewable Energy Transition: Funding Database

1

Funding Database: Financing Puerto Rico’s Renewable Energy Transition Glossary and Acronyms

4

Funding Database: List of Programs

7

Department of Energy Funding Opportunities

8

Puerto Rico Energy Resilience Fund

8

Transmission Siting and Economic Development Grants Program

12

Grid Resilience State and Tribal Formula Grants

14

DOE Transmission Facility Financing Site

16

Transmission Facilitation Program

18

Grid Resilience Utility and Industry Grants

20

Smart Grid Grants

22

Grid Innovation Program

24

Renew America’s Schools

26

Renew America’s Nonprofits

28

State Energy Program

30

Energy Efficiency and Conservation Block Grants Program

32

Energy Efficiency Revolving Loan Fund Capitalization Grants Program

34

Weatherization Assistance Program

36

Title 17 Clean Energy Financing

38

Office of Clean Energy Demonstrations

41

Distributed Energy Systems Demonstration Program

43

Clean Energy Innovator Fellowship

45

Communities Local Energy Action Program 2.0

47

Department of the Treasury Funding Opportunities

49

Production Tax Credit

49

Investment Tax Credits

51

Department of Agriculture Funding Opportunities

53

Powering Affordable Clean Energy Program

53

2

Empowering Rural America Program (New ERA)

55

Rural Energy for America Program (REAP)

57

Federal Emergency Management Agency Funding Opportunities

59

FEMA Accelerated Awards Strategy

59

Hazard Mitigation Grant Program (HMGP)

61

Building Resilient Infrastructure and Communities (BRIC)

63

Flood Mitigation Assistance

65

Environmental Protection Agency Funding Opportunities

67

Community Change Grants

67

Climate Pollution Reduction Grants (Phase I)

69

Climate Pollution Reduction Grants (Phase II)

71

Greenhouse Gas Reduction Fund

73

Clean Communities Investment Accelerator

73

National Clean Investment Fund

76

Solar for All

78

Department of Housing and Urban Development Funding Opportunities Community Development Block Grant Disaster Recovery

80 80

Energy Grid Rehabilitation and Reconstruction Cost Share Program

80

Electrical Power Reliability and Resilience Program

82

Community Energy and Water Resilience Installations Program

85

Green Resilient Retrofit Program

88

3

Glossary and Acronyms ACEEE

American Council for an Energy-Efficient Economy

Act 17

The Puerto Rico Energy Public Policy Act

BRIC

Building Resilient Infrastructure Communities Grant Program

CBO

Community-based Non-profit Organization

CCAP

Comprehensive Climate Action Plan

CCIA

Clean Communities Investment Accelerator

CDBG

Community Development Block Grant Program

CDBG-DR

Community Development Block Grant Disaster Recovery

CDBG-MIT

Community Development Block Grant Mitigation Funding

CEWRI

Community Energy and Water Resilience Installations Program

CFPB

U.S. Consumer Financial Protection Bureau

CPRG

Climate Pollution Reduction Grants

COR3

Puerto Rico Central Office for Recovery, Reconstruction, and Resiliency

DOE

U.S. Department of Energy

EECBG

Energy Efficiency and Conservation Block Grant

EERE

Department of Energy Office of Energy Efficiency and Renewable Energy

EIR

Energy Investment Reinvestment

EPA

U.S. Environmental Protection Agency

FAASt

FEMA Accelerated Awards Strategy

FEMA

Federal Emergency Management Administration

FMA

Flood Mitigation Assistance

4

FOA

Funding Opportunity Announcements

FOMB

Financial Oversight and Management Board for Puerto Rico

FY

Fiscal Year

GDO

Department of Energy’s Grid Deployment Office

GGRF

Greenhouse Gas Reduction Fund

GRIP

Grid Resilience and Innovation Partnerships

HMGP

Hazard Mitigation Grant Program

HUD

U.S. Department of Housing and Urban Development

HVAC

heating, ventilation, and air conditioning

IIJA

Infrastructure, Investment, and Jobs Act

IRA

Inflation Reduction Act

IRP

Integrated Resource Plan

IRS

U.S. Internal Revenue Service

ITC

Investment Tax Credit

LEAP

Communities Local Energy Action Program

LPO

Loan Program Office

LUMA

LUMA Energy

MSA

Metropolitan Statistical Area

NCIF

National Clean Investment Fund

New ERA

Empowering Rural America

NOI

Notice of Intent

OCED

Department of Energy’s Office of Clean Energy Demonstrations

PACE

Powering Affordable Clean Energy Program

PCAP

Priority Climate Action Plan

PPOA

Power Purchase and Operating Agreement

PR

Puerto Rico

PREB

Puerto Rico Energy Bureau 5

PREPA

Puerto Rico Electric Power Authority

PR-DNER

Puerto Rico Department of Natural and Environmental Resources

PR-ERF

Puerto Rico Energy Resilience Fund

PTC

Production Tax Credit

PW

Project Worksheet

REAP

Rural Energy for America

REIC

Renewable Energy Installation Company

RFA

Request for Advance

RFP

Request for Proposal

RFR

Request for Reimbursement

RLF

Revolving Loan Fund

R3

Home Repair, Reconstruction or Relocation Program

SCEP

Department of Energy’s Office of State and Community Energy Programs

SEP

Department of Energy's State Energy Program

TPO

Third-party owners

Treasury

U.S. Department of the Treasury

TSED

Transmission Siting and Economic Development Grants Program

USDA

US. Department of Agriculture

WCA

Working Capital Advances

WEMSE

Wholesale Electricity Market Studies and Engagement Program

6

Funding Database: List of Programs In the following section, we present key federal funding sources for the energy transition that entities in Puerto Rico may be eligible to apply for. To assist stakeholders in finding sources for which they may qualify, we have tagged the pages of the Funding Database with symbols as outlined below.

Symbol

Eligible Entities

✢

Electric utility providers; Regulatory bodies (e.g. PREB, PREPA, LUMA, Genera PR)

✩

NGOs; Nonprofits; Community organizations

✺

Puerto Rican homeowners or private citizens

✧

Private businesses

✿

Puerto Rico Green Energy Trust

◎

State or local municipal governments

⧫

Independent power producers and project developers

⇹

Co-ops

7

Department of Energy Funding Opportunities Puerto Rico Energy Resilience Fund Fund Name and Link

Puerto Rico Energy Resilience Fund

Relevant Tags

✢, ✩, ✧, ✿, ◎,✺ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2023

Governing act/bill (if applicable)

FY 2023 Consolidated Appropriations Act

Brief context on creation

After Hurricane Fiona, the PR-ERF was launched in 2023 to support Puerto Rico’s grid resilience efforts and its transition to 100% renewable energy by 2050. The first wave of PR-ERF funding (up to $450 million) aims to support the installation of residential solar and battery systems in 30,000–40,000 very low-income, single-family households. PR-ERF also includes funding to further intake processing (Solar Ambassador Prize) and to support education, training, and consumer protection.1

II. Amount allocated

$1 billion

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

1

FUNDS

ELIGIBILITY

Recipients must support the following topic areas: ● Topic Area 1: Third-Party Residential Deployment (Rooftop Solar PV and Battery Storage) ● Topic Area 2: Community-Sponsored Residential Rooftop Deployment ● Topic Area 3: Beneficiary Education, Training, and

“Puerto Rico Energy Resilience Fund.” Energy.gov, n.d. https://www.energy.gov/gdo/puerto-rico-energy-resiliencefund.

8

Consumer Protection2

Example of previous recipients

For the first wave of funding ($450 million), the DOE selected: ● Three companies under Topic Area 1 to enter award negotiations for up to $400 million: Generac Power Systems, Inc., Sunnova Energy Corporation, and Sunrun, Inc. ● Five nonprofits and cooperatives under Topic Area 2 to enter award negotiations for up to $40 million: Barrio Eléctrico, Comunidad Solar Toro Negro, Inc., Environmental Defense Fund, Let's Share the Sun Foundation, and Solar United Neighbors, Inc. ● Two organizations under Topic Area 3 to receive $10 million for education, training, and consumer protection (Hispanic Federation Inc. and the Institute for Building Technology and Safety) and sixteen community organizations to receive funding under the $3.85million Solar Ambassador Prize to support intake processing.3

IV.

OPERATIONS

Current status (open, reviewing, closed)

Closed. Recipients for the first wave of funding ($450 million) have been announced. Installations are expected to begin in early 2024.4

Upcoming key dates (if applicable)

(Expected) 2024 — GDO releases Funding Opportunity Announcement for the second wave of PR-ERF funding.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Applicants include: ● “Private industry, educational institutions, state and local governmental entities, non-profit organizations, and energy cooperatives.”5 ● Beneficiaries are very low-income, single-family households.

Recommendations for utilizing funds

N/A

“Frequently Asked Questions on the Puerto Rico Energy Resilience Fund 2023 Funding Opportunity Announcement.”

Energy.gov, n.d. https://www.energy.gov/gdo/frequently-asked-questions-puerto-rico-energy-resilience-fund2023-funding-opportunity.

3 “DOE Announces Over $13 Million to Connect More Puerto Rico Communities with Residential Solar and Battery Storage.” Energy.gov, November 29, 2023. https://www.energy.gov/articles/doe-announces-over-13-millionconnect-more-puerto-rico-communities-residential-solar-and.

4 “Frequently Asked Questions on the Puerto Rico Energy Resilience Fund 2023 Funding Opportunity Announcement.”

Energy.gov, n.d. https://www.energy.gov/gdo/frequently-asked-questions-puerto-rico-energy-resilience-fund2023-funding-opportunity.

5 “Puerto Rico Energy Resilience Fund.” Energy.gov, n.d. https://www.energy.gov/gdo/puerto-rico-energy-resiliencefund.

2

9

Fund Name and Link

Wholesale Electricity Market Studies and Engagement Program

Relevant Tags

✢, ◎ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2023

Governing act/bill (if applicable)

Consolidated Appropriations Act, 2023

Brief context on creation

WEMSE “provides states and regions with technical and financial assistance related to developing, expanding, and improving wholesale electricity markets.”6

II.

FUNDS

Amount allocated

$9 million

Type of financing (grant, loan, etc.)

Grant

Year established

2023

III.

ELIGIBILITY

Eligibility requirements

Recipients must: ● Support states and regional system operators in conducting analytical studies and interregional transmission planning. ● “Activities under this program could include performing analytical studies on critical market issues, convening stakeholders, or increasing a state or region’s capacity to engage in market design reform efforts and stakeholder planning processes at a regional level.”7

Example of previous recipients

N/A

“Wholesale Electricity Market Studies and Engagement Program.” Energy.gov, n.d. https://www.energy.gov/gdo/wholesale-electricity-market-studies-and-engagement-program.

7 “Wholesale Electricity Market Studies and Engagement Program.” Energy.gov, n.d. https://www.energy.gov/gdo/wholesale-electricity-market-studies-and-engagement-program.

6

10

IV.

OPERATIONS

Current status (open, reviewing, closed)

Closed.

Upcoming key dates (if applicable)

WEMSE will include three rounds of funding.8

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ●

Recommendations for utilizing funds

8

State energy agency (Puerto Rico Department of Economic Development and Commerce, Energy Policy Program) System operators (e.g. PREB, PREPA, LUMA, Genera PR).

Ensure applications are submitted for second and third rounds of WEMSE funding.

“Wholesale Electricity Market Studies and Engagement Program.” Energy.gov, n.d. https://www.energy.gov/gdo/wholesale-electricity-market-stIntroduction

11

Transmission Siting and Economic Development Grants Program Fund Name and Link

Transmission Siting and Economic Development Grants Program

Relevant Tags

✢, ◎ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2023

Governing act/bill (if applicable)

IRA (Provision 50152)

Brief context on creation

The goal of TSED is to accelerate and strengthen electric transmission siting and permitting processes. Administered by DOE's GDO, the TSED grant program is a new initiative designed to overcome state and local challenges to expanding transmission capacity while also supporting communities along major new and upgraded lines.

II.

FUNDS

Amount allocated

$300 million

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

ELIGIBILITY ●

●

Example of previous recipients

For siting and permitting activities: siting authorities, defined as Tribal, state, or local governmental entities with the authority to make a final determination regarding the siting, permitting, or regulatory status of a “covered transmission project.”

For economic development activities: siting authorities or any Tribal, state, or local government entity proposing to undertake a project in a community impacted by the construction or operation of a “covered transmission project”.

N/A

12

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open.

Upcoming key dates (if applicable)

Round 1 ● Concept Paper Deadline: November 17, 2024 ● Full Application Deadline: April 2024 ● Selection Notification: Summer 2024

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

LUMA.

Recommendations for utilizing funds

LUMA government affairs should have already submitted a proposal for these grants and encouraged local government partners to also dip into this pot of money.

13

Grid Resilience State and Tribal Formula Grants Fund Name and Link

Grid Resilience State and Tribal Formula Grant Program

Relevant Tags

⧫, ✢, ◎ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2021

Governing act/bill (if applicable)

IIJA (Section 40101(d))

Brief context on creation

This grant program is designed to strengthen and modernize the power grid to increase its resilience to extreme weather and natural disasters that are exacerbated by climate change.9

II.

FUNDS

Amount allocated

$2.3 billion

Type of financing (grant, loan, etc.)

Grant.

III. Eligibility requirements

ELIGIBILITY ● ●

● ●

All States, territories and Indian tribes are eligible to apply.

Applicants must submit a plan that describes the intended project sub-recipients, the distribution of the funding and the criteria that will be used for selection.

Typical sub-recipients are entities in the electricity system, including grid operators, generators and transmission owners.

Allowable projects must provide resiliency benefits to the existing grid, rather than new generation capacity. 10 The size of grants is based on a formula that incorporates population, land area, the probability and severity of past disruptive events and historical expenditure on mitigation efforts.

Department of Energy. “Grid Resilience State and Tribal Formula Grant Program.” DoE Grid Deployment Office. 2023.

Accessed November 24, 2023. https://www.energy.gov/gdo/grid-resilience-statetribal-formula-grant-program.

10 Department of Energy. “Frequently Asked Questions: Grid Resilience Formula Grants to States and Indian Tribes IIJA Section 40101(d).” June 21, 2023. Accessed November 24, 2023. https://netl.doe.gov/sites/default/files/202306/40101d%20Frequently%20Asked%20Questions%20Updated%20ALRD%207.pdf.

9

14

●

Example of previous recipients

States and territories must also match 15% of the amount awarded under the grant.11

To date, 48 states, 49 tribal entities and three territories have been awarded grants.12 Government entities are now expected to hold competitive processes to select projects.

IV.

OPERATIONS

Current status (open, reviewing, closed)

Closed.

Upcoming key dates (if applicable)

Application deadlines for future fiscal years after 2023 will be announced.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Recommendations for utilizing funds

●

In July 2023, the Puerto Rico Central Office for Recovery, Reconstruction, and Resiliency was awarded a $7.4 million grant for increasing access to costeffective and resilient electricity in vulnerable communities.13,14 While specific project requirements have not been published, entities already providing electricity services to rural and remote communities will be well placed to seek this funding. This could include LUMA or Genera PR. Importantly, projects receiving funding through the USDA PACE or New ERA programs can also receive this funding.

The Puerto Rico Central Office for Recovery and Reconstruction should define a clear, public timeline for competitively selecting projects and awarding the funding as soon as possible.

Department of Energy. “Frequently Asked Questions: Grid Resilience Formula Grants to States and Indian Tribes IIJA Section 40101(d).”

12 Department of Energy. “Grid Resilience State and Tribal Formula Grant Awards.” DoE Grid Deployment Office.

September 2023. Accessed November 24, 2023. https://www.energy.gov/gdo/grid-resilience-state-and-tribalformula-grant-awards.

13 Department of Energy. “Fact Sheet - Grid Resilience State and Tribal Formula Grants: Puerto Rico.” 2023. Accessed November 24, 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 Department of Energy. “Biden-Harris Administration Invests Over $7 Million to Improve the Resilience of Puerto Rico’s Electric Grid.” July 31, 2023. Accessed November 24, 2023. https://www.energy.gov/articles/bidenharris-administration-invests-over-7-million-improve-resilience-puerto-ricos.

11

15

DOE Transmission Facility Financing Site Fund Name and Link

DOE Transmission Facility Financing Site

Relevant Tags

✢ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2022

Governing act/bill (if applicable)

Inflation Reduction Act

Brief context on creation

Section 50151 of the IRA provided $2 billion in funding to support DOE GDO’s direct loan authority for facility financing. Loans will support modification of existing facilities and construction of new ones.15 In Puerto Rico, this loan authority allows GDO to support LUMA’s efforts to revitalize and strengthen transmission technology.

II.

FUNDS

Amount allocated

$2 billion

Type of financing (grant, loan, etc.)

Loan

III. Eligibility requirements

ELIGIBILITY ●

●

Loans are available to non-federal borrowers and may not exceed 80% of the total cost of the project and and have a term not exceeding 90% of the facilities projected useful life or 30 years (whichever is shorter). 16 However, an entity may not receive Transmission Facility Financing under IRA section 50151 if it is receiving grants or other Federal support, such as funding under IIJA sections 40101, 40103(b) 40107, or the Transmission Facilitation

The U.S. Department of Energy, Grid Deployment Office. “Transmission Facility Financing.” Energy.gov. Accessed November 27, 2023. https://www.energy.gov/gdo/transmission-facility-financing.

16 IRA Tracker. “Ira Section 50151 - Transmission Facility Financing.” Inflation Reduction Act Tracker, March 2, 2023. https://iratracker.org/programs/ira-section-50151-transmission-facility-financing/.

15

16

Program funding.17

Example of previous recipients

Not yet announced.

IV.

OPERATIONS

Current status (open, reviewing, closed)

This program is under development; anticipate application announcements.

Upcoming key dates (if applicable)

The funds will remain available through September 30, 2030. DOE will not enter loan agreements that could result in disbursements after September 30, 2031.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

LUMA

Recommendations for utilizing funds

Eligible organizations should monitor RFPs and calls for application, assuming they are eligible and have not received other TFP funding.

17

The U.S. Department of Energy, Grid Deployment Office. “Grid & Transmission Programs Conductor Guide Department of Energy.” Grid & Transmission Programs Conductor Guide, p 14, September 15, 2022. https://www.energy.gov/sites/default/files/202210/FINAL_GDO_Grid%20and%20Transmission%20Program%20Guide_091522%5B19%5D.pdf.

17

Transmission Facilitation Program Fund Name and Link

Transmission Facilitation Program

Relevant Tags

✢, ⧫ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2023

Governing act/bill (if applicable)

IIJA

Brief context on creation

A revolving fund program that uses Federal funding to build, upgrade, and expand large-scale interregional transmission lines and connection of microgrids across the United States. Relates to the clean energy transition because transmission capacity is crucial for achieving the deployment of clean energy. The program prioritizes projects that meet certain objectives, including contributions to lower electricity GSG emissions.

II.

FUNDS

Amount allocated

$2.5 billion

Type of financing (grant, loan, etc.)

Three tools: ● Capacity contract where DoE is “anchor tenant” and agrees to purchase 50% of planned line rating for up to 40 years and sell the contract to recover costs ● Loans ● PPs within national interest electric transmission corridors.

III. Eligibility requirements

Example of previous recipients

ELIGIBILITY ●

Entity must carry out a project that constructs, replaces, or upgrades transmission line capable of not less than (1) 1,000 MW or (2) for upgrading or new transmission connected to existing infrastructure, including microgrid connection, not less than 500 MW.

As of 2023, DoE is in capacity contract negotiations with three projects:

18

●

●

IV.

Southline Transmission Projects (Arizona, New Mexico) a 175-mile, 748 transmission line to unlock renewable energy and deliver clean energy to growing markets in Arizona.

The other two include Cross-Tie 500kV Transmission Line Project (Nevada, Utah) and Twin States Clean Energy Link (New Hampshire, Vermont).

OPERATIONS

Current status (open, reviewing, closed)

Three projects were selected based on the first round of RFPs in October 2023. Future RFP may be conducted but dates have not been announced as yet.

Upcoming key dates (if applicable)

N/A

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

LUMA

Recommendations for utilizing funds

Monitor the status of RFPs and apply accordingly.

19

Grid Resilience Utility and Industry Grants Fund Name and Link

Grid Resilience Utility and Industry Grants

Relevant Tags

✢, ⧫ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2021

Governing act/bill (if applicable)

IIJA

Brief context on creation

This program will support upgrades/modernization of the electric grid – including transmission and distribution infrastructure – so communities are better able to handle extreme weather events like floods, wildfires, hurricanes, and more. In this bucket, DOE will prioritize projects that produce the greatest community benefit by reducing the harm caused by severe weather and other disruptive events.

II.

FUNDS

Amount allocated

$2.5 billion

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

ELIGIBILITY

“Domestic entities,” including: ● Electric grid/storage operators, transmission owners/operators, distribution provider, fuel supplier, “any other relevant entity, as determined by the Secretary”.

Example of previous recipients

●

IV.

Hawaiian Electric Company, LLC – Climate Adaptation Resilience Program

OPERATIONS

20

Current status (open, reviewing, closed)

Closed.

However, according to DOE’s FAQ, “The exact timeline for subsequent issuances of this FOA have not yet been determined; at this time we anticipate issuing an announcement during the approximately October – December, 2023 timeframe.”

Upcoming key dates (if applicable)

V.

While DOE has not released a second notice Funding Opportunity Announcement (FOA), the timeline for the first allocation was approximately six months (December 2022 – May 2023.)

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties Recommendations for utilizing funds

LUMA and PREPA ●

●

PREPA and LUMA should be on the lookout for upcoming announcements of a second round of funding. DOE will make funding opportunity announcements public online and via regular communications.

LUMA may be able to apply FEMA funds toward the 100% cost share requirement of this program. Because of Puerto Rico’s unique situation regarding an influx of federal funds, discuss possible cost share opportunities with the point of contact from DOE.

21

Smart Grid Grants Fund Name and Link

Smart Grid Grants

Relevant Tags

◎, ✩, ⧫, ✧ I.

BACKGROUND

Agency

Department of Energy

Office

Grid Deployment Office

Year established

2021

Governing act/bill (if applicable)

IIJA

Brief context on creation

These grants are meant to fund projects that increase the flexibility and reliability of the electric system. In particular, they will focus on increasing capacity, preventing faults, integrating renewable energy at transmission and distribution levels, and facilitating the integration of EVs and efficient buildings.

II. Amount allocated

$3 billion

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

Example of previous recipients

FUNDS

ELIGIBILITY

Eligible entities include: ● Universities, for profit entities, nonprofit entities, state/local governments, tribal nations. ● Note this list excludes mention of territories. ●

IV.

Surry-Yadkin Electric Membership Corporation (SYEMC) – Rural Focused Resiliency at a Small-Scale Electric Co-op

OPERATIONS

Current status (open, reviewing, closed)

Closed.

Upcoming key dates (if applicable)

The next round of funding opens at the end of 2023, per GRIP Fact Sheet.

22

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ● ●

University of Puerto Rico EDF in Culebra or other nonprofits For profits with the capacity to implement large-scale grid resiliency projects.

Recommendations for utilizing funds

●

Interested entities should be on the lookout for upcoming announcements of a second round of funding. DOE will make FOAs public online and via regular communications.

Multiple entities in Puerto Rico, including University of Puerto Rico and community solar nonprofits, should apply as a bloc to increase chances of being approved by DOE. UPR already has existing research projects exploring microgrids and solar, and multiple nonprofits on the island already operate at the community level. To expand the reach of these projects, these entities should collaborate to increase the chance of project selection and procure the required cost share.

●

23

Grid Innovation Program Fund Name and Link

Grid Innovation Program

Relevant Tags

◎, ✢, I.

BACKGROUND

Agency

Department of Energy ()

Office

Grid Deployment Office

Year established

2021

Governing act/bill (if applicable)

IIJA

Brief context on creation

This program supports projects that use transmission, storage, and distribution infrastructure to increase grid resilience and reliability.

Selected projects will include investments to accelerate interconnection of clean energy generators and distribution of backup power (storage).

Approaches may range from innovative partnerships to new planning processes.

II. Amount allocated

$5 billion

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

Example of previous recipients

FUNDS

ELIGIBILITY

Eligible entities include” ● States, tribes, units of local government, and public utility commissions. ● Note this list excludes mention of territories. ● ●

IV.

Hawai`i State Energy Office (HSEO) Hawai`i Department of Business, Economic Development, and Tourism – Utility Solar Grid Forming Technology (USGFT )

OPERATIONS

24

Current status (open, reviewing, closed)

Closed.

Upcoming key dates (if applicable)

The next round of funding opens at the end of 2023, per GRIP Fact Sheet.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ● ●

Puerto Rico government Local government Public utility commission e.g. PREB

Recommendations for utilizing funds

●

PREB should determine its eligibility to apply for these funds.

If it is eligible, and is capable of funding the required cost match, multiple opportunities exist to increase the capacity of Puerto Rico’s transmission and distribution systems, which are a first order concern of ratepayers and utility operators alike.

●

25

Renew America’s Schools Fund Name and Link

Renew America’s Schools

Relevant Tags

✩, ◎ I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

2022

Governing act/bill (if applicable)

IIJA

Brief context on creation

Promote clean energy improvements (energy efficiency, renewable energy, alternative fueled vehicle upgrades at K-12 schools across the country, with a focus on high-need schools.

II.

FUNDS

Amount allocated

$80 million

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

ELIGIBILITY

Eligible projects include: ● Energy infrastructure improvements that reduce building operating costs—like new HVAC and ventilation systems, building envelope and lighting projects, and renewable energy technologies. ● Funding is also available for alternative-fueled vehicles and alternative-fueled vehicle infrastructure.

Example of previous recipients

● ●

IV. Current status (open, reviewing, closed)

Alexandria City Public Schools (Alexandria, VA) – replacing HVAC boilers Kane County School District (Kanab, UT) – replacing coalfired boilers.

OPERATIONS

Closed.

26

Upcoming key dates (if applicable) V.

Spring 2024: second round of funding opens up.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

K-12 schools making clean energy upgrades in PR.

Recommendations for utilizing funds

●

Puerto Rican government or non-profits should support school systems in checking eligibility and applying for this funding.

27

Renew America’s Nonprofits Fund Name

Renew America's Nonprofits

Relevant Tags

✩

I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

2021

Governing act/bill (if applicable)

IIJA Section 40502

Brief context on creation

Originally part of the IIJA, the DOE’s Renew America’s Nonprofits Program aims “to reduce carbon emissions, improve health and safety, and lower utilities costs at buildings owned and operated by 501(c)(3) nonprofits.”18

II.

FUNDS

Amount allocated

$50 million

Type of financing (grant, loan, etc.)

Competitive Grant

III.

ELIGIBILITY

Eligibility requirements

●

Subrecipients must be nonprofit 501(c)(3) organizations that own and operate their buildings and use subawards for building energy efficiency improvements.19

Example of previous recipients

● ●

Nine prime recipients have already been selected.

Southface Energy Institute is expected to partner with Puerto Rican nonprofits.20

IV.

OPERATIONS

“Renew America’s Nonprofits.” Energy.gov, n.d. https://www.energy.gov/scep/renew-americas-nonprofits.

“Renew America’s Nonprofits: At-A-Glance.” State and Community Energy Programs, n.d. https://www.energy.gov/sites/default/files/2023-05/Renew%20America%27s%20Nonprofits%20FOA%20%20At%20a%20Glance_0.pdf.

20 “Renew America’s Nonprofits.” Energy.gov, n.d. https://www.energy.gov/scep/renew-americas-nonprofits.

18 19

28

Current status (open, reviewing, closed)

Prime recipients are currently identifying their nonprofit subrecipients.

Upcoming key dates (if applicable)

Prime recipients will submit their portfolio of subrecipients and funded projects by approximately June 2024.21

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Puerto Rican 501(c)(3) nonprofits as potential subrecipients.

Recommendations for utilizing funds

●

Puerto Rican 501(c)(3) nonprofits should contact Southface Energy Institute (the relevant prime awardee) as soon as possible to submit pitches for relevant subrecipient projects of up to $200,000.

21

“Renew America’s Nonprofits.” Energy.gov, n.d. https://www.energy.gov/scep/renew-americas-nonprofits.

29

State Energy Program Fund Name

State Energy Program

Relevant Tags

◎ I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

1975

Governing act/bill (if applicable)

The Energy Policy and Conservation Act of 1975 (P.L. 94-163)

Brief context on creation

Congress created SEP amid the energy crisis of the 1970s to promote energy efficiency and renewable energy efforts. Today, “SEP provides funding and technical assistance to states, territories, and the District of Columbia to enhance energy security, advance state-led energy initiatives, and increase energy affordability.”22

II.

FUNDS

Amount allocated

$60 million (FY23)23

Type of financing (grant, loan, etc.)

Annual Formula Grant

III.

ELIGIBILITY

Eligibility requirements

●

States submit an Annual Grant Application with the minimum requirements established by SEP’s final rule in 1997 (10 CFR Part 420).

Example of previous recipients

●

“SEP provides annual funding to fifty states, the District of Columbia, and the five U.S. territories to support a nationwide infrastructure of state energy offices. Since 2010, SEP has provided states and territories with more than $540 million in financial assistance.”24

“About the State Energy Program.” Energy.gov, n.d. https://www.energy.gov/scep/about-state-energy-program.

“State Energy Program Guidance.” Energy.gov, n.d. https://www.energy.gov/scep/state-energy-program-guidance.

24 “About the State Energy Program.” Energy.gov, n.d. https://www.energy.gov/scep/about-state-energy-program.

22 23

30

IV.

OPERATIONS

Current status (open, reviewing, closed)

Formula grant with annual funding allocations.

Upcoming key dates (if applicable)

FY23 Applications Closed; FY24 Administrative and Legal Requirements Document to be announced likely in early 2024.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Puerto Rico Department of Economic Development and Commerce, Energy Policy Program

Recommendations for utilizing funds

●

N/A

31

Energy Efficiency and Conservation Block Grants Program Fund Name

Energy Efficiency and Conservation Block Grant Program

Relevant Tags

◎ I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

2007

Governing act/bill (if applicable)

Title V, Subtitle E of the Energy Independence and Security Act of 2007

Brief context on creation

EECBG aims “to assist states, local governments, and Tribes in implementing strategies to reduce energy use, to reduce fossil fuel emissions, and to improve energy efficiency.”25

II.

FUNDS

Amount allocated

$550 million (provided by the IIJA (Public Law 117-58), Sec. 40552

Type of financing (grant, loan, etc.)

Formula and Competitive Grants

III. Eligibility requirements

ELIGIBILITY ● ● ●

Example of previous recipients

●

Fifty-six states and territories are eligible for formula grants.

1,878 local governments and 774 Indian tribes are eligible for formula grants and vouchers.26 DOE provides a full list of eligible uses of EECBG funds.

In November 2023, Puerto Rico received a formula grant of $1,855,570 to establish “a program to subgrant funds to ineligible municipalities to install solar streetlights in downtown areas and to perform energy audits. The program

“Energy Efficiency and Conservation Block Grant Program.” Energy.gov, n.d. https://www.energy.gov/scep/energyefficiency-and-conservation-block-grant-program.

26 “Energy Efficiency and Conservation Block Grant (EECBG) Program Frequently Asked Questions.” Energy.gov, October 2023. https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-eecbg-programfrequently-asked-questions.

25

32

will further an island-wide strategy to reduce energy burden and increase grid resiliency.”27

IV.

OPERATIONS

Current status (open, reviewing, closed)

DOE is awarding formula grants to states and territories from applications that were due on July 31, 2023.

Upcoming key dates (if applicable)

The application deadline for all local governments and Tribes to apply for EECBG Program formula funding is April 30, 2024. This applies to direct grant and voucher applications.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ●

Recommendations for utilizing funds

●

Puerto Rico Department of Economic Development and Commerce, Energy Policy Program Local governments For Puerto Rican local government authorities, DOE especially encourages local governments whose award amount is less than $250,000 or who have limited staffing capacity to pursue the voucher option. “Vouchers can be used for technical assistance and/or rebates for the purchase and installation of energy efficiency or clean energy equipment.”28

“Energy Efficiency and Conservation Block Grant Program Awards.” Energy.gov, n.d. https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-program-awards.

28 “Energy Efficiency and Conservation Block Grant (EECBG) Program Frequently Asked Questions.” Energy.gov, October 2023. https://www.energy.gov/scep/energy-efficiency-and-conservation-block-grant-eecbg-programfrequently-asked-questions.

27

33

Energy Efficiency Revolving Loan Fund Capitalization Grants Program Fund Name

Energy Efficiency Revolving Loan Fund Capitalization Grant Program

Relevant Tags

◎, ✺, ✩, ✧ I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

2021

Governing act/bill (if applicable)

IIJA Section 40502

Brief context on creation

Established under the IIJA, the Energy Efficiency RLF Capitalization Grant Program “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.” 29

II.

FUNDS

Amount allocated

$250 million

Type of financing (grant, loan, etc.)

Formula Grant

III. Eligibility requirements

Example of previous recipients

ELIGIBILITY

●

Funding is given to States eligible under the SEP. States may then award loans and grants to eligible individuals, nonprofit organizations, or businesses.30 DOE provides additional information on terms of eligibility.

●

N/A

●

“Energy Efficiency Revolving Loan Fund Capitalization Grant Program.” Energy.gov, n.d. https://www.energy.gov/scep/energy-efficiency-revolving-loan-fund-capitalization-grant-program.

30 “Energy Efficiency Revolving Loan Fund Capitalization Grant Program.” Energy.gov, n.d. https://www.energy.gov/scep/articles/frequently-asked-questions-revolving-loan-fund-capitalization-grantprogram.

29

34

IV.

OPERATIONS

Current status (open, reviewing, closed)

Applications under review; expected announcement late 2023

Upcoming key dates (if applicable)

Announcement of initial awards expected late 2023. Additional funds may be available.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Puerto Rico Department of Economic Development and Commerce, Energy Policy Program

Recommendations for utilizing funds

●

Funds may be used for energy efficiency audits, upgrades, and retrofits as well as the deployment of onsite renewable energy technology.

35

Weatherization Assistance Program Fund Name

Weatherization Assistance Program

Relevant Tags

✺, ◎ I.

BACKGROUND

Agency

Department of Energy

Office

Office of State and Community Energy Programs

Year established

1976, Energy Conservation and Production Act

Governing act/bill (if applicable)

The IIJA recently provided an additional $25 million to the program through the Weatherization Assistance Program Enhancement and Innovation section.

Brief context on creation

The Energy Conservation and Production Act of 1976 created the Weatherization Assistance Program with the stated purpose to “increase the energy efficiency of dwellings owned or occupied by lowincome persons, reduce their total residential expenditures, and improve their health and safety.”

II.

FUNDS

Amount allocated

$310 million (FY21)

Type of financing (grant, loan, etc.)

Grants

III.

ELIGIBILITY

Eligibility requirements

●

Low-income households, defined by WAP as at or below 200 percent of the poverty line (though grantees are able to use other eligibility metrics).

Example of previous recipients

●

Low-income households

IV. Current status (open, reviewing, closed)

OPERATIONS

WAP funding is allocated each year; Puerto Rico was allocated $1.38 million in FY2020, and $1.14 million in FY2021.

36

Upcoming key dates (if applicable) V.

N/A

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Low-income Puerto Ricans are eligible for these funds through Puerto Rico’s State Office of Public Energy Policy.

Recommendations for utilizing funds

●

PREB and PREPA should update regulations and strategies for local energy efficiency programs to include the Weatherization Assistance Program, as well as other federal energy efficiency programs. Coordinating with Puerto Rico’s State Office of Public Energy Policy can help amplify the impact of these funds in PREPA’s shared goals.

37

Title 17 Clean Energy Financing Fund Name

Title 17 Clean Energy Financing

Relevant Tags

✢, ✿, ◎, ⧫ I.

BACKGROUND

Agency

Department of Energy

Office

Loan Program Office

Year established

2005

Governing act/bill (if applicable)

2005 Energy Policy Act, reauthorized and revised by subsequent legislation, including the IIJA (2021) and the IRA (2022).

Brief context on creation

The Title 17 Clean Energy Financing program is designed to provide access to long-term debt for clean energy projects. A central aim is to support the deployment of innovative clean energy technology and supply chains on the path to full commercial viability and market acceptance.31 The program also supports financing efforts through state energy financing institutions like green banks. The IRA added the EIR authority to the program, allowing financial support for repurposing and replacing energy infrastructure, especially in areas where aging infrastructure is a problem.32

II.

FUNDS

Amount allocated

In total, the Title 17 Clean Energy Financing program is authorized to guarantee loans of more than $300 billion. Loan guarantees are provided on a project-by-project basis, so there is no fixed allocation.33

Type of financing (grant, loan, etc.)

The program provides loan guarantees with low interest rates for up to thirty years to achieve lower interest rates on debt from the Federal Financing Bank and commercial lenders.

III.

ELIGIBILITY

Department of Energy. “Title 17 Clean Energy Financing.” 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/title-17-clean-energy-financing.

32 Department of Energy. “Energy Infrastructure Reinvestment.” 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/energy-infrastructure-reinvestment.

33 Department of Energy. “Title 17 Clean Energy Financing.”

31

38

Eligibility requirements

●

●

● ●

●

Example of previous recipients

●

IV.

All projects must achieve a significant avoidance, reduction, utilization, or sequestration of greenhouse gas or air pollution and use technically viable and commercially ready technology.

Projects cannot also be receiving certain other forms of federal support, including grants and other loan guarantees, but energy production and ITCs are compatible.34 Innovative Energy and Innovative Supply Chain projects must involve the use of innovative technology.

State Energy Financing Institution projects do not need to utilize innovative technology but must be receiving financial support from a State agency or financing authority.

Energy Infrastructure Reinvestment projects must involve retooling, repowering, repurposing, or replacing energy infrastructure that has ceased operations and/or enable reductions in air pollutants or emissions.

In total, twenty-six full or partial loan guarantees have been allocated, worth $28.9 billion. Projects have included: ○ Early stage solar farms ○ New wind turbine technology ○ Geothermal power ○ Clean hydrogen ○ New battery storage systems.35

OPERATIONS

Current status (open, reviewing, closed)

The LPO’s Title 17 Clean Energy Financing is open. Applications are considered on an individual, rolling basis.

Upcoming key dates (if applicable)

N/A

V. Potential relevant parties

PUERTO RICO SPECIFIC ANALYSIS ●

Innovative Energy: In September 2023, the DOE announced a $3 billion partial loan guarantee for Sunnova Energy Corporation’s Project Hestia, which will increase access to residential solar, battery storage and virtual power plant-ready software for 75,000 to 115,000 households across the United States, including Puerto Rico.36

Department of Energy. “Program Guidance for Title 17 Clean Energy Financing Program.”

Department of Energy. “LPO Portfolio Projects.” 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/portfolio-projects.

36 Department of Energy. “DOE Announces $3 Billion Partial Loan Guarantee to Sunnova’s Project Hestia.” September 28, 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/articles/doe-announces-3-billion-partialloan-guarantee-sunnovas-project-hestia.

34 35

39

Recommendations for utilizing funds

●

Energy Infrastructure Reinvestment: The LPO has determined that renewable energy projects and battery energy storage systems procured through Puerto Rico’s centralized procurement plan (the tranche process, led by PREB) are eligible to apply for Title 17 loan guarantees under the EIR authority.37 This applies to projects already contracted under Tranche 1 and projects to be contracted under Tranches 2 and 3.

●

To maximize the impact of the DOE’s loan guarantee support for Puerto Rico’s centralized procurement of solar power and battery storage, PREB should urgently increase the pace and transparency of this procurement. Doing so will boost credibility and market confidence, thereby attracting stronger bids for which DOE support through the Title 17 program can be effectively applied.

The DoE should consider ways it can provide additional capacity support to PREB to accelerate this process too.

Puerto Rico’s Green Energy Trust is eligible to apply for support through the Title 17 State Energy Financial Institution program. The Green Energy Trust should investigate ways to leverage this federal support alongside the required support from the Puerto Rican government.

● ●

37

Department of Energy. “Notice to Applicants on LPO Determination of Eligibility for Puerto Rico Projects Applying Under the Energy Infrastructure Reinvestment (EIR) Program.” July 21, 2023. Accessed November 24, 2023. https://www.energy.gov/lpo/articles/notice-applicants-lpo-determination-eligibility-puerto-rico-projectsapplying-under.

40

Office of Clean Energy Demonstrations Fund Name

Energy Improvements in Rural or Remote Areas Technical Assistance

Relevant Tags

✢, ◎, ⧫, ⇹ I.

BACKGROUND

Agency

Department of Energy

Office

Office of Clean Energy Demonstrations

Year established

2023

Governing act/bill (if applicable)

IIJA

Brief context on creation

To help deploy community-driven, clean energy solutions in rural and remote areas nationwide. The ERA program provides financial investment, technical assistance, and other resources to advance clean energy demonstrations and energy solutions that are replicable and scalable.

II.

FUNDS

Amount allocated

$1 billion

Type of financing (grant, loan, etc.)

Grant

III. Eligibility requirements

ELIGIBILITY ●

●

●

Example of previous recipients

●

Projects must deliver measurable benefits to energy customers in rural or remote areas by funding replicable energy projects that lower energy costs, improve energy access and resilience, and/or reduce environmental harm.

Projects must demonstrate new rural or remote energy system models using climate-resilient technologies, business structures that promote economic resilience, new financing mechanisms, and/or new community engagement best practices.

Projects must build clean energy knowledge, capacity, and self-reliance throughout rural America.

DOE provides a full list of the sixty-seven winners of Phase One of the Energizing Rural Communities Prize.

41

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

N/A

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ● ●

USDA Rural Development Barrio Electrico Fostering Energy Resilience in Puerto Rico Project

Recommendations for utilizing funds

●

Funding should be used for one of the following areas: ○ Overall cost-effectiveness of energy generation, transmission, or distribution systems; ○ Siting or upgrading transmission and distribution lines; ○ Reducing greenhouse gas emissions from energy generation by rural or remote areas; ○ Providing or modernizing electric generation facilities; ○ Developing microgrids; or ○ Increasing energy efficiency.

42

Distributed Energy Systems Demonstration Program Fund Name

Distributed Energy Systems Demonstrations Program

Relevant Tags

✢, ◎, ⧫, ⇹ I.

BACKGROUND

Agency

Department of Energy

Office

Office of Clean Energy Demonstrations

Year established

2023

Governing act/bill (if applicable)

IIJA

Brief context on creation

Funds distributed energy systems demonstrating financial and technical approaches to distributing large amounts of distributed energy resources to support communities.38

II.

FUNDS

Amount allocated

$50 million

Type of financing (grant, loan, etc.)

Award with a required minimum 50 percent non-federal cost-share.39

III. Eligibility requirements

ELIGIBILITY ●

●

Eligible applicants include municipal, cooperative, and investor-owned utilities and for-profit entities with an established portfolio of aggregated distributed energy resources under contract.40 Projects funded must meet the following requirements: ● Using a distribution grid with at least 20 MW peak load; ● Utilizing distributed energy resources with an aggregated capacity of at least 25 percent of the grid system peak load; and

Office of Clean Energy Demonstrations . 2023. “Funding Notice: Distributed Energy Systems Demonstrations Program.” U.S. Department of Energy. September 26, 2023. https://www.energy.gov/oced/funding-noticedistributed-energy-systems-demonstrations-program.

39 Ibid.

40 Ibid.

38

43

●

Example of previous recipients

●

IV.

Ensuring at least 50 percent of distributed energy resources are in place and/or enrolled at the application stage

N/A

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

December 13, 2023: concept papers due April 15, 2024: submission deadline for applications Note: only applicants who have submitted a concept paper will be eligible to submit a full application.41

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Utilities and for-profits that are working on DERs in PR.

Recommendations for utilizing funds

●

N/A

41

Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization. 2023. “Distributed Energy Systems Demonstrations.” U.S. Department of Energy. September 26, 2023. https://energycommunities.gov/funding-opportunity/distributed-energy-systems-demonstrations/.

44

Clean Energy Innovator Fellowship Fund Name

Clean Energy Innovator Fellowship

Relevant Tags

✢, ⇹ I.

BACKGROUND

Agency

Department of Energy

Office

Office of Energy Efficiency and Renewable Energy

Year established

2017

Brief context on creation

The DOE Clean Energy Innovator Fellowship program is a unique workforce development program that provides fellows with on-the-job training and professional development opportunities. At the same time, their hosts receive support to accelerate the transition to clean electricity and improve grid resiliency. Fellows support a wide range of projects covering topics including clean energy integration, expanding electric vehicle charging, 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 received special attention and priority in the current iteration.

II.

FUNDS

Amount allocated

Twenty-nine Fellowships

Type of financing (grant, loan, etc.)

Fellowship

III. Eligibility requirements

ELIGIBILITY

For Host Organizations: ● Electric public utility commissions in the United States and U.S. territories ● Electric cooperatives and municipal utilities ● Puerto Rican essential energy organizations ● Tribal utilities ● Inter-tribal councils and other tribal organizations ● Grid operators Eligible host institutions in Puerto Rico may host up to three Innovator Fellows. In 2023, host institutions interested in hosting

45

more than one fellow had to submit a separate application for each and identify a unique project and mentor for each fellow.

For Fellows: ● “The fellowship is open to recent bachelor’s degree, master’s degree, and doctoral graduates and early career professionals.

Fellowship candidates must demonstrate an interest in renewable energy, energy efficiency, and/or sustainable transportation technology and policy; electric grid resilience and modernization; Puerto Rico grid recovery and modernization; and Tribal energy resilience. Fellows serve one-year terms and can renew for a second year. Fellows receive a competitive stipend with health benefits and an education allowance to support their professional development.”

Example of previous recipients

●

IV.

In 2023, the following Puerto Rican entities hosted fellows: ○ Cooperativa Hidroeléctrica de la Montaña ○ LUMA

OPERATIONS

Current status (open, reviewing, closed)

Closed for 2023

Upcoming key dates (if applicable)

Future rounds of the Clean Energy Innovator Fellowship are subject to Congressional appropriations and may have an altered process

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

● ● ●

Electric utility regulator Utility, grid operators Electric cooperatives

Recommendations for utilizing funds

●

N/A

46

Communities Local Energy Action Program 2.0 Fund Name

Communities Local Energy Action Program 2.0

Relevant Tags

✩, ◎, ⇹ I.

BACKGROUND

Agency

Department of Energy

Office

Office of Policy

Year established

2022

Governing act/bill (if applicable)

N/A

Brief context on creation

Technical assistance to communities to develop and advance their own community-driven clean energy transition approach.

II.

FUNDS

Amount allocated

Twenty-four to thirty-two selected communities will receive technical assistance (in-kind expert services) valued up to $18.75 million 42

Type of financing (grant, loan, etc.)

Technical assistance

III. Eligibility requirements

ELIGIBILITY

Eligible communities are defined as communities in the United States—including Tribal nations and territories— that meet the following criteria: ● At least 30 percent of the community population is classified as low-income; and ● High or severe energy burden (median spending of household income on energy bills ≥5 percent).43 Additionally, communities must meet one or both of the following

43

U.S. Department of Energy . 2023. “Communities LEAP (Local Energy Action Program) Cohort 2 Competitive Technical Assistance Opportunity.” U.S. Department of Energy . https://www.energy.gov/sites/default/files/202309/Communities%20LEAP%20Cohort%202%20Notice%20of%20Technical%20Assistance%20Opportunity%20 9.27.pdf.

47

criteria: ● Historical economic dependence on fossil fuel industrial facilities; or ● Disadvantaged communities.

Applicants must include at least one CBO and at least one local, Tribal, territorial, regional, or state government entity.

Example of previous recipients

●

IV.

DOE provides a list of twenty-four communities from the first round.44

OPERATIONS

Current status (open, reviewing, closed)

Closed

Upcoming key dates (if applicable)

December 14, 2023: application deadline for LEAP 2.0 Spring 2024: Announcement of selections

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

●

Community-led projects working in counties or census tract areas supporting local clean energy transitions.

Recommendations for utilizing funds

● ●

Most of Puerto Rico is eligible as per this map.45 Community-based projects should keep an eye on what projects are selected and upcoming dates.

“LEAP Communities.” 2023. Communities LEAP. U.S. Department of Energy. September 27, 2023. https://energycommunities.gov/funding-opportunity/communities-local-energy-action-program-leap-round2/#:~:text=Eligible%20applicants%20are%20low%2Dincome.

45 “LEAP Eligible Communities 2023.” 2023. U.S. Department of Energy. September 27, 2023. https://arcgis.netl.doe.gov/portal/apps/experiencebuilder/experience/?id=2a77f443d72b4a4d82474b3ffe33b8c d.

44

48

Department of the Treasury Funding Opportunities Production Tax Credit Fund Name and Link

Production Tax Credit

Relevant Tags

⧫, ⇹, ✧, ✩ I.

BACKGROUND

Agency

United States Department of the Treasury

Year established

2022 - available for the 2023 tax year

Governing act/bill (if applicable)

IRA

Brief context on creation

Most IRA energy and climate funding is provided through tax incentives to individuals ($43 billion) and corporations ($216 billion). 46 To deliver these credits, the IRA established monetization mechanisms by adding new sections to the IRC. Section 6417 establishes elective pay and Section 6418 establishes transferability. Elective pay (also known as direct pay) enables eligible entities, such as tax-exempt and governmental entities that would not otherwise qualify for specific tax credits due to their lack of federal income tax liability, to take advantage of certain clean energy tax incentives. The PTCs are eligible for elective pay. Transferability works in tandem with eligible pay 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 exchange their tax credits for cash.47 There are also bonus incentive credits that can be added to PTCs (more details on page XX). These credits boost the generosity of the PTCs for projects in energy communities, projects that meet prevailing wage and apprenticeship standards, and/or projects that use “domestic content,” which means the steel, iron, or manufactured products used in the

Badlam, J., Jared Cox, Adi Kumar, Nehal Mehta, Sara O’Rourk, & Julia Silvis. (2022, October 24). What’s in the Inflation Reduction Act (IRA) of 2022. 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). Recommendations for Guidance Regarding Elective Payment of Applicable Credits and Transfer of Certain Credits. 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 46

49

project were manufactured in the US.48

II.

FUNDS

Amount allocated

The credits will be available for 2023-2032. There is not a specific amount allocated for these credits; they will be available to any eligible entity during the 10-year window.

Type of financing (grant, loan, etc.)

Tax credit

III.

ELIGIBILITY

Eligibility requirements

Businesses and certain tax-exempt entities in the commercial and industrial sectors who invest in the following technologies: geothermal electric, solar thermal electric, solar photovoltaics, wind, biomass, hydroelectric, municipal solid waste, landfill gas, tidal, wave, ocean thermal, hydroelectric, offshore wind. PTCs are available to businesses that pay federal taxes. In Puerto Rico, PTCs are also available via elective pay.

Example of previous recipients

Ford Motor Company has announced a multi-billion dollar investment in an electric vehicle battery plant using the PTC known as the Advanced Manufacturing Production Credit.

First Solar, Inc. is investing $1.2 billion in the manufacturing of photovoltaic modules, using PTCs to help finance the project

IV.

OPERATIONS

Current status (open, reviewing, closed)

The PTCs are available for the 2023 tax year and will continue to be available through 2032.

Upcoming key dates (if applicable)

Tax Day – 04/15/2024

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Energy manufacturers and project developers in Puerto Rico.

Recommendations for utilizing funds

Developers should understand the various PTCs and which projects are eligible. They should also understand how bonus incentives can be stacked.

48

IRS. (Nov. 16, 2023). Credits and deductions under the Inflation Reduction Act of 2022 https://www.irs.gov/creditsand-deductions-under-the-inflation-reduction-act-of-2022

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Investment Tax Credits Fund Name and Link

Investment Tax Credit

Relevant Tags

⧫, ⇹, ✧, ✩ I.

BACKGROUND

Agency

United States Department of the Treasury

Year established

2022 - available for the 2023 tax year

Governing act/bill (if applicable)

IRA

Brief context on creation

Most IRA energy and climate funding is provided through tax incentives to individuals ($43 billion) and corporations ($216 billion). 49 To deliver these credits, the IRA established monetization mechanisms by adding new sections to the IRC. Section 6417 establishes elective pay and Section 6418 establishes transferability. Elective pay (also known as direct pay) enables eligible entities, such as tax-exempt and governmental entities that would not otherwise qualify for specific tax credits due to their lack of federal income tax liability, to take advantage of certain clean energy tax incentives.. The ITCs are not eligible for elective pay. Transferability works in tandem with eligible pay 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 exchange their tax credits for cash. 50 There are also bonus incentive credits that can be added to ITCs (more details on page XX). These credits boost the generosity of the ITC for projects in low-income communities or energy communities, projects that meet prevailing wage and apprenticeship standards, and/or projects that use “domestic content,” which means the steel, iron, or manufactured products used in the project were manufactured in the US. 51

II.

FUNDS

Badlam, J., Jared Cox, Adi Kumar, Nehal Mehta, Sara O’Rourk, & Julia Silvis. (2022, October 24). What’s in the Inflation Reduction Act (IRA) of 2022. 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). Recommendations for Guidance Regarding Elective Payment of Applicable Credits and Transfer of Certain Credits. 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). Credits and deductions under the Inflation Reduction Act of 2022 https://www.irs.gov/creditsand-deductions-under-the-inflation-reduction-act-of-2022 49

51

Amount allocated

The credits will be available for 2023-2032. There is not a specific amount allocated for these credits; they will be available to any eligible entity during the 10-year window.

Type of financing (grant, loan, etc.)

Tax credit

III.

ELIGIBILITY

Eligibility requirements

ITCs are available to individuals and businesses that pay federal taxes.

In Puerto Rico, ITCs are not available via elective pay. The only way Puerto Ricans can take advantage of the ITC is via third-party ownership by entities based in the mainland United States.

Example of previous recipients

Arizona homeowners have used ITC credits to install residential solar panels.52 Arevon Energy Inc. is utilizing ITCs and other IRA tax credits to build one of the first utility-scale solar peaker plants in the United States. The project will cost nearly $530 million and the plant will be located in southern California.53

IV.

OPERATIONS

Current status (open, reviewing, closed)

The ITCs are available for the 2023 tax year and will continue to be available through 2032.

Upcoming key dates (if applicable)

Tax Day – 04/15/2024

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Homeowners, businesses, energy manufactures, project developers, but currently only via third-party ownership arrangements.

Recommendations for utilizing funds

Advocate that Treasury waive Section 50(b)(1) of the IRC for the territories to become eligible for the ITC. Find TPOs that are willing to work with Puerto Ricans and advocate that TPOs seek deals that maximize savings for Puerto Rican households and businesses

Gonzalez A (2023) AZ homeowner touts benefits of solar investment tax credit. In: Public News Service. https://www.publicnewsservice.org/2023-11-03/energy-policy/az-homeowner-touts-benefits-of-solarinvestment-tax-credit/a87045-1. Accessed 29 Nov 2023 53 Solar Builder Magazine (2023) Arevon leverages ira tax credits to build utility-scale solar peaker project in California. https://solarbuildermag.com/projects/arevon-leverages-ira-tax-credits-to-build-utility-scale-solar-peaker-projectin-california/. Accessed 29 Nov 2023 52

52

Department of Agriculture Funding Opportunities Powering Affordable Clean Energy Program Fund Name and Link

Powering Affordable Clean Energy Program

Relevant Tags

✢, ✩, ◎, ⧫, ⇹ I.

BACKGROUND

Agency

United States Department of Agriculture

Year established

2022

Governing act/bill (if applicable)

IRA

Brief context on creation

PACE was introduced through the IRA and represents the largest investment in rural electrification in recent U.S. history. PACE uses $1 billion in funding to enable rural communities to access clean and reliable energy.

II.

FUNDS

Amount allocated

$1 billion.

Type of financing (grant, loan, etc.)

Loan and loan forgiveness, with a maximum loan of $100 million and a minimum of $1 million.

III. Eligibility requirements

ELIGIBILITY

Applicants must generate electricity for resale to residents in rural and non-rural areas, with at least 50 percent of residents served being in rural communities (twenty thousand or less). Eligible entities include: ● ● ● ● ● ● ● ●

Corporations, states, and territories, along with their subdivisions and agencies Municipalities Utility districts Cooperatives Nonprofits Indian Tribes Alaska Native, regional, or village corporations Limited Liability Companies or other for-profit entities

53

organized under the laws of any U.S. state or territory The program also supports designated energy communities, disadvantaged, distressed and tribal communities.

Example of previous recipients

No funds granted yet.

IV.

OPERATIONS

Current status (open, reviewing, closed)

Closed for applications (closed 9/23).

Upcoming key dates (if applicable)

Not listed.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

PACE can be used for wind, solar, hydropower, geothermal, or biomass renewable energy projects, which in Puerto Rico could include solar farms serving primarily rural areas, energy communities or microgrid projects, utilities serving rural areas, and energy storage systems.

Recommendations for utilizing funds

As a territory, Puerto Rico is able to access the highest category of PACE loan forgiveness (up to 60 percent of total loan amount) so entities should prioritize this funding source.

54

Empowering Rural America Program (New ERA) Fund Name and Link

Empowering Rural America Program (New ERA)

Relevant Tags

⇹ I.

BACKGROUND

Agency

United States Department of Agriculture

Year established

2023

Governing act/bill (if applicable)

IRA

Brief context on creation

The New ERA program helps rural Americans transition to clean, affordable, and reliable energy. By reducing air and water pollution, New ERA funding improves health outcomes and lowers energy costs for people in rural communities.

II.

FUNDS

Amount allocated

$9.7 billion.

Type of financing (grant, loan, etc.)

Loan, grant, loan and grant combination, and loan refinancing.

III. Eligibility requirements

ELIGIBILITY

New ERA funding is available to member-owned rural electric cooperatives, which have been central to America’s rural power delivery. This includes existing or former USDA Rural Utilities Service borrowers, borrowers of the former Rural Electrification Administration, rural electric cooperatives that serve predominantly rural areas, and wholly or jointly owned subsidiaries of rural electric cooperatives.

New ERA applicants are separated into three categories: ● Category 1: Total utility plant value equal to or more than $500 million. ● Category 2: Total utility plant value more than $200 million and less than $500 million. ● Category 3: Total utility plant value equal to or less than $200

55

million.

IV. Current status (open, reviewing, closed) V. Potential relevant parties

OPERATIONS

Closed

PUERTO RICO SPECIFIC ANALYSIS Several Puerto Ricoan organizations have applied for New ERA funding, but this list of applicants has not been published.

Disbursements are to be made before the end of the 2024 fiscal year.

56

Rural Energy for America Program (REAP) Fund Name and Link

Rural Energy for America Program (REAP)

Relevant Tags

✧, ✺ I.

BACKGROUND

Agency

United States Department of Agriculture

Year established

2008, 2023

Governing act/bill (if applicable)

Farm Bill, IRA

Brief context on creation

REAP was created in 2008 Farm Bill by combining the 2002 Farm Bill's Energy Efficiency Improvements and Renewable Energy Systems Program with an amended version of another 2002 Farm Bill program for grants for energy audits and assistance in using renewable energy technology and resources.

II.

FUNDS

Amount allocated

$145 million.

Type of financing (grant, loan, etc.)

Guaranteed Loans (for Puerto Rico).

III. Eligibility requirements

ELIGIBILITY

REAP is intended for small businesses and agricultural producers. ●

● ● ●

Example of previous recipients

Individual borrowers must be citizens of the United States or reside in the United States after being legally admitted for permanent residence.

Private-entity borrowers must demonstrate that loan funds will remain in the United States.

Businesses must be located in rural areas with populations of 50,000 or fewer.

Agricultural producers can be located in rural or nonrural areas.

Recipients in other locations include small businesses upgrading their fridges and other electrical products, installing solar panels and batteries, etc.

57

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

Quarterly application windows are taking place, with upcoming deadlines on March 31 2024, June 30 2024, and September 30 2024.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Since most of Puerto Rico is considered rural, entities across most of the territory are eligible to apply.

Recommendations for utilizing funds

REAP is potentially hugely beneficial for small businesses and farmers in rural Puerto Rico (most of the territory), so applications should be prioritized and supported.

58

Federal Emergency Management Agency Funding Opportunities FEMA Accelerated Awards Strategy Fund Name and Link

FEMA Accelerated Awards Strategy (FAASt)

Relevant Tags

✢ I.

BACKGROUND

Agency

FEMA

Year established

2020

Governing act/bill (if applicable)

Section 428 of the Stafford Act

Brief context on creation

Three years after Hurricane Maria, in 2020 FEMA launched FAASt for Puerto Rico, which gave PREPA $9.4 billion to fund expedited energy grid work and restorations caused by the storm. In 2023, $1.2 billion were also allocated for Hurricane Fiona recovery funds under the FAASt mechanism. The wider FAASt program also supports the Puerto Rico Aqueduct and Sewer Authority, Puerto Rico Department of Education, and Puerto Rico Public Housing Administration 54

II.

FUNDS

Amount allocated

$9.4 billion

Type of financing (grant, loan, etc.)

Funds are typically transferred through a Request for Reimbursement process, wherein beneficiaries will submit Project Worksheet requests for approval.

In some cases, FEMA can process Requests for Advance (RFA). To submit a RFA, applicants should submit a contract of work, procurement plan, and 90-day spend plan to FEMA. Final documentation and confirmation of payments is due to FEMA 90 days after the disbursement of RFA funds.

FEMA can also facilitate a Working Capital Advance (WCA). To apply for a WCA, applicants do not need a contract or procurement

54

FEMA. 2022. “FEMA Accelerated Awards Strategy (FAASt).” FEMA. https://www.fema.gov/about/reports-anddata/faast.

59

plan. However, the applicant must certify that the obligated permanent work project will comply with state and federal regulations. Under the WCA, FEMA will grant applicants a 25 percent advance payment for the federally obligated share of the project (which is 90 percent).

III.

ELIGIBILITY

Eligibility requirements

The funding for grid infrastructure includes microgrid, substation, and transmission line restorations, and other projects to aid emergency recovery and advance the island’s transition to renewable energy.

Example of previous recipients

PREPA, LUMA, Genera PR

IV. Current status (open, reviewing, closed) V.

OPERATIONS

Open

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Many projects have already been approved, although information is only available up to summer 2022. When transmission, distribution, and generation responsibilities were contracted to LUMA and Genera PR, they became eligible for reimbursements from the fund, despite PREPA being the legal subrecipient.

Recommendations for utilizing funds

These funds should be leveraged by the main electric utility and its contractors to invest in grid updates and restorations.

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Hazard Mitigation Grant Program (HMGP) Fund Name and Link

Hazard Mitigation Grant Program (HMGP)

Relevant Tags

◎, ✢ I.

BACKGROUND

Agency

FEMA

Year established

1988

Governing act/bill (if applicable)

Section 404 of the Stafford Act

Brief context on creation

A percentage of the amount of Public Assistance funds from a disaster declaration get allocated to the HMGP.55 Unlike core Public Assistance funds which must be linked to addressing damage, HMGP funds can be used to reduce vulnerability to future disasters. These funds can be used for different kinds of hazard mitigation projects, including flood protection, retrofitting measures, or microgrid construction.56

II.

FUNDS

Amount allocated

The amount apportioned is a subset of the total share of federal assistance under the disaster declaration.

Type of financing (grant, loan, etc.)

Funds are typically transferred through a Request for Reimbursement process, wherein beneficiaries will submit Project Worksheet requests for approval.

In some cases, FEMA can process Requests for Advance (RFA). To submit a RFA, applicants should submit a contract of work, procurement plan, and 90-day spend plan to FEMA. Final documentation and confirmation of payments is due to FEMA 90 days after the disbursement of RFA funds.

FEMA can also facilitate a Working Capital Advance (WCA). To apply for a WCA, applicants do not need a contract or procurement

FEMA. 2023. “Hazard Mitigation Grant Program (HMGP).” FEMA. https://www.fema.gov/grants/mitigation/hazard-mitigation.

56 Puerto Rico Central Office for Recovery, Reconstruction, and Resiliency. n.d. “Puerto Rico Disaster Recovery Transparency Portal.” Puerto Rico Disaster Recovery Transparency Portal - COR3. Accessed January 7, 2024. https://recovery.pr.gov/en/recovery-programs/hazard-mitigation-assistance.

55

61

plan. However, the applicant must certify that the obligated permanent work project will comply with state and federal regulations. Under the WCA, FEMA will grant applicants a 25 percent advance payment for the federally obligated share of the project (which is 90 percent).

III. Eligibility requirements

ELIGIBILITY

Applicants and sub-applicants must have a FEMA-approved mitigation plan as well as an HMGP mitigation plan.57

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open, as of the 2020 allocation of Hurricane Maria recovery funds.

Upcoming key dates (if applicable)

Awards must be closed within 48 months from the close of the application period.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Governor’s Office of Puerto Rico.

Recommendations for utilizing funds

The Governor’s Office can use HMGP funds to support PREPA, LUMA, Genera PR, or municipal-level projects.

57

FEMA. “Hazard Mitigation Assistance Program and Policy Guide.” FEMA, 22 September 2023, https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf. Accessed 7 January 2024.

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Building Resilient Infrastructure and Communities (BRIC) Fund Name and Link

Building Resilient Infrastructure and Communities (BRIC)

Relevant Tags

◎, ✩, ✧, ✺ I.

BACKGROUND

Agency

FEMA

Year established

Updated in 2020

Governing act/bill (if applicable)

Stafford Act 203

Brief context on creation

BRIC was established under Section 203 of the Stafford Recovery Act, which authorized FEMA to fund cost-effective hazard mitigation projects that lessen the likelihood of property destruction, protect life, and reduce injuries.58

II.

FUNDS

Amount allocated

Varies annually. $3 billion in FY22, $1 billion in FY23

Type of financing (grant, loan, etc.)

Funds are typically transferred through a Request for Reimbursement process, wherein beneficiaries will submit Project Worksheet requests for approval.

In some cases, FEMA can process Requests for Advance (RFA). To submit a RFA, applicants should submit a contract of work, procurement plan, and 90-day spend plan to FEMA. Final documentation and confirmation of payments is due to FEMA 90 days after the disbursement of RFA funds.

FEMA can also facilitate a Working Capital Advance (WCA). To apply for a WCA, applicants do not need a contract or procurement plan. However, the applicant must certify that the obligated permanent work project will comply with state and federal regulations. Under the WCA, FEMA will grant applicants a 25 percent advance payment for the federally obligated share of the project (which is 90 percent).

III.

58

ELIGIBILITY

FEMA. 2023. “Hazard Mitigation Assistance Program and Policy Guide.” FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.

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Eligibility requirements

States and territories must have had a disaster declaration under the Stafford Act in the last seven years to apply for BRIC. Local governments and tribes are eligible to apply to states and territories for federal assistance under BRIC as sub-applicants.59 While businesses, NGOs, and individuals are ineligible, eligible applicants/sub-applicants can apply on behalf of these entities.

Example of previous recipients

American Samoa: Faga'alu Shoreline Project; Pennsylvania: The Cohocksink Flood Mitigation Project.

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

The closing date for FY2023 applications is February 29, 2024. FY2024 application will be posted online.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Puerto Rican government; mayors and municipal entities.

Recommendations for utilizing funds

Local entities can use these funds to receive grants for smaller projects that will increase grid resilience but do not fall under current provider or utility project plans.

59

FEMA. 2023. “Hazard Mitigation Assistance Program and Policy Guide.” FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.

64

Flood Mitigation Assistance Fund Name and Link

Flood Mitigation Assistance

Relevant Tags

◎ I.

BACKGROUND

Agency

FEMA

Year established

1994

Governing act/bill (if applicable)

National Flood Insurance Reform Act of 1994

Brief context on creation

The grants can be used to mitigate flood risk for structures insured by the National Flood Insurance Program.60, 61

II.

FUNDS

Amount allocated

Varies annually. FY23 had an $800 million allocation.

Type of financing (grant, loan, etc.)

Funds are typically transferred through a Request for Reimbursement process, wherein beneficiaries will submit Project Worksheet requests for approval.

In some cases, FEMA can process Requests for Advance (RFA). To submit a RFA, applicants should submit a contract of work, procurement plan, and 90-day spend plan to FEMA. Final documentation and confirmation of payments is due to FEMA 90 days after the disbursement of RFA funds.

FEMA can also facilitate a Working Capital Advance (WCA). To apply for a WCA, applicants do not need a contract or procurement plan. However, the applicant must certify that the obligated permanent work project will comply with state and federal regulations. Under the WCA, FEMA will grant applicants a 25 percent advance payment for the federally obligated share of the project (which is 90 percent).

III.

ELIGIBILITY

FEMA. 2023. “Flood Mitigation Assistance Grant Program.” FEMA. https://www.fema.gov/grants/mitigation/floodmitigation-assistance.

61 FEMA. 2023. “Hazard Mitigation Assistance Program and Policy Guide.” FEMA. https://www.fema.gov/sites/default/files/documents/fema_hma_guide_08232023_v1.pdf.

60

65

Eligibility requirements

State, Territory and Tribal Governments are eligible to apply.

Example of previous recipients

Recipients and sub-applicants covered a wide range of locations and project types in FY2022.62

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

FY23 applications close February 29, 2024. New notice of funding opportunity for FY24 to be posted online. Applicants must also have a FEMA-approved hazard mitigation plan.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

All localities in Puerto Rico qualify for the NFIP.63 The Territory government would be the primary applicant for Flood Mitigation Assistance; local governments would be sub-applicants.

Recommendations for utilizing funds

These funds can be used for shoreline and flood-vulnerable community protection from flood damage in Puerto Rico.

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.

62

66

Environmental Protection Agency Funding Opportunities Community Change Grants Fund Name and Link

Community Change Grants

Relevant Tags

✩, ◎ I.

BACKGROUND

Agency

Environmental Protection Agency

Year established

2023

Governing act/bill (if applicable)

IRA

Brief context on creation

The EPA has established grants funded through IRA resources to support climate justice initiatives in marginalized communities. These grants will fund projects aimed at reducing pollution, enhancing climate resilience, and building capacity to address climate justice challenges in these areas.

II.

FUNDS

Amount allocated

$2 Billion

Type of financing (grant, loan, etc.)

Grants (Most awards will be allocated in amounts of $10-20 million)

III. Eligibility requirements

ELIGIBILITY

The intended audience for these funds is community-based non-profit organization (CBOs); partnerships between CBOs and federally recognized tribes, local governments, and institutions of higher learning; and collaborating sub-recipients and subcontractors.

Applications must come from a partnership between at least two CBOs or between a CBO and a federally recognized tribe, local government, and institution of higher learning. Recipients must be able to provide activities as outlined in the Notice of Funding Opportunity (NOFO).64

64

EPA. 2023. “Frequently Asked Questions - Community Change Grants Program.” https://www.epa.gov/system/files/documents/2023-08/Frequently%20Asked%20Questions%20%20Community%20Change%20Grants%20August%202023_0.pdf.

2023.

67

IV.

OPERATIONS

Current status (open, reviewing, closed)

Open

Upcoming key dates (if applicable)

Applications are open until November 21, 2024. Applications will be reviewed on a rolling basis.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Mayors, community leaders, and community organizations on islands in collaboration with local jurisdictions.

Recommendations for utilizing funds

These funds could be used in small towns and islands to install rooftop solar in the most disadvantaged communities.

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Climate Pollution Reduction Grants (Phase I) Fund Name and Link

CPRG Planning Grants (Phase I of CPRG)

Relevant Tags

◎ I.

BACKGROUND

Agency

Environmental Protection Agency

Office

Climate Pollution Reduction Grants

Year established

2022

Governing act/bill (if applicable)

IRA

Brief context on creation

Provides “flexible support” for territories to design climate actions plans that incorporate a variety of measures to reduce greenhouse gasses across six key sectors (electricity generation, industry, transport, buildings, agriculture, waste management)

II.

FUNDS

Amount allocated

~$250 million - up to $3 million per award

Type of financing (grant, loan, etc.)

Grant (non-competitive cooperative agreements), four-year period

III.

ELIGIBILITY

Eligibility requirements

Territories eligible

Example of previous recipients

From EPA: “Puerto Rico will use the funds to augment climate planning in collaboration with municipalities and conduct meaningful engagement with communities, including with overburdened communities.”65

IV.

65

OPERATIONS

US EPA, OA. 2023. “EPA and Puerto Rico Announce $3 Million for Puerto Rico to Plan Innovative Climate Projects.”

Www.epa.gov. April 12, 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.

69

Current status (open, reviewing, closed)

$3 million award to PR-DNER pending as of 10/25/2023. This is odd because every other award has been approved, and may indicate the proposal was approved but funds have not been allocated

Upcoming key dates (if applicable)

Deliverables include: 1. PCAP - April 1, 2024 2. CCAP - due when grant period ends Both of these deliverables are described in detail in Appendix 14.2 of the Program Guidance for Tribes and Territories

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Nonprofit organizations, municipalities, and universities are eligible for subawards. This may be relevant for PR-DNER in considering who it can hire for developing the PCAP and CCAP, which qualifies as an eligible expenditure under the program.

Page 11 of the FAQ outlines eligible activities under this program

Recommendations for utilizing funds

-

-

Specific recommendations will depend on DNER’s proposal and planned activities. Regardless of plans, PR-DNER should incorporate municipal government (mayors) to develop comprehensive plans for community outreach, universities for data collection, nonprofits for implementation planning* Implementation grants (phase 2, discussed below) will only be awarded to proposals that include activities presented in the PCAP (deliverable, above). As such, the PCAP should identity ambitious plans that encompass multiple sectors and areas of Puerto Rico

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Climate Pollution Reduction Grants (Phase II) Fund Name and Link

CPRG Implementation Grants (Phase II of CPRG)

Relevant Tags

◎ I.

BACKGROUND

Agency

Environmental Protection Agency

Office

Climate Pollution Reduction Grants

Year established

2022

Governing act/bill (if applicable)

IRA

Brief context on creation

Two competitions: One for states, municipalities, tribes, tribal consortia, and territories One competition only for tribes, tribal consortia, and territories The effective purpose of Implementation Grants/Phase II of CPRG is for entities who received a planning grant and delivered the PCAP to implement the activities outlined therein. Other entities capable of implementing some activity outlined in the PCAP are also eligible to apply.

II.

FUNDS

Amount allocated

$4.6 billion, individual grants for territories expected between $1 and $25 million

Type of financing (grant, loan, etc.)

Grant (competitive) - Notice of Funding Opportunity (NOFO)

III. Eligibility requirements

ELIGIBILITY

Open to entities that received planning grants (Phase I of CPRG, discussed in the preceding bucket) and entities seeking to implement activities outlined in the PCAP (including municipalities and other organizations). Territories are eligible to apply for both the first and second competitive funding opportunities.

Example of previous recipients

71

IV.

OPERATIONS

Current status (open, reviewing, closed)

Request for applications is public - dates below

Upcoming key dates (if applicable)

For open competitions: Optional Notice of Intent (NOI) to Apply - February 1, 2024 Complete applications - April 1, 2024 For tribes and territories only competitions: Optional NOI to Apply - March 1, 2024 Complete applications - May 1, 2024 Awards out - October 2024

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties Recommendations for utilizing funds

Any organization in PR capable of carrying out an activity laid out in PR-DNER’s PCAP -

-

-

It may be in the best interest of PR to apply to both funding opportunities through CPRG Phase 2.

Per FAQs, page 9, coalitions consisting of at least one entity that were awarded a planning grant and delivered a PCAP (PR-DNER) will be considered, but not given preference.

That said, a coalition consisting of multiple stakeholders on PR may present a stronger application than DNER alone.

Work with technical assistance opportunities presented by EPA, including webinars and Region 2 personnel, to identify gaps in the proposal that may make the bid less competitive.

Be sure that activities included in this proposal align closely with activities presented in the PCAP. If they do not, the proposal may be deemed ineligible.

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Greenhouse Gas Reduction Fund Clean Communities Investment Accelerator Fund Name and Link

Clean Communities Investment Accelerator

Relevant Tags

◎, ✩, ✿ I.

BACKGROUND

Agency

Environmental Protection Agency

Office

Clean Communities Investment Accelerator

Year established

2022

Governing act/bill (if applicable)

IRA

Brief context on creation

The Accelerator will deploy $6 billion through grants to 2-7 hub nonprofits, which will then provide funding and technical assistance to community lenders that are either public, quasi-public, or nonprofit.

Examples of community lenders include: green banks, community development financial institutions, credit unions, housing finance agencies, minority depository institutions, and many others The funding assistance will support the capitalization of these community lenders through sub-grants or subsidies. The technical assistance grants will be designed to support the capacity of community lenders.

100% of projects funded under the CCIA must be spent in at least one of three priority areas AND located in a low-income and disadvantaged community. The three priority categories are: (1) Distributed Energy Generation (2) Net-Zero Emissions Buildings (3) Zero-Emissions Transportation.

II.

FUNDS

Amount allocated

$6 Billion

Type of financing (grant, loan, etc.)

Grants

III.

ELIGIBILITY

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Eligibility requirements

Applicants had to meet the following requirements: (a) is a non-profit; (b) is designed to provide capital, leverage private capital, and provide other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services; (c) does not take deposits other than deposits from repayments and other revenue received from financial assistance provided using grant funds under this program; (d) is funded by public or charitable contributions; and (e) invests in or finances projects alone or in conjunction with other investors.

Eligible recipients could have applied as individual applicants or as the “lead applicant” in a coalition.

Example of previous recipients

This program has not yet made any awards.

IV.

OPERATIONS

Current status (open, reviewing, closed)

The application period has closed, and EPA is currently reviewing applications, with announcements expected by March 2024.

Upcoming key dates (if applicable)

OCTOBER 12, 2023 - Application packages from national nonprofits were due.

BY MARCH 2024 - EPA expects the grant recipients will be selected

by March 2024.

BY JULY 2024 - Programs funded under this opportunity will start

by July 2024.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

The Puerto Rican Green Energy Trust and other Puerto Rican community lenders– such as other local green banks, community development financial institutions, credit unions, housing finance agencies, minority depository institutions, and many others

Recommendations for utilizing funds

Recipients of CCIA funding will need to understand the unique political, financial, and legal barriers Puerto Rico faces to achieve its energy transition. Puerto Rico faces many unique challenges in achieving 100% renewable energy, including, as outlined in other sections of this report, legal hurdles to taking advantage of some other IRA programs that the fifty states and Washington, DC do not face. When CCIA recipients are announced, they should ensure they design new programs in a way that ensures Puerto Ricans are eligible to receive the same levels of support that other Americans receive.

The PR Green Energy Trust must identify an Executive Director and promptly set up financing vehicles that could receive

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funding CCIA funded entities. As the Territory's official green bank, Green Energy Trust would be the ideal entity to receive funding under the CCIA. However, if the trust fails to build the staffing and program capacity now adequately, it will be ill-prepared to apply for funding when financing is available later next year.

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National Clean Investment Fund Fund Name and Link

National Clean Investment Fund

Relevant Tags

✿ I.

BACKGROUND

Agency

Environmental Protection Agency

Fund Name

National Clean Investment Fund (Greenhouse Gas Reduction Fund)

Year established

2022/23

Governing act/bill (if applicable)

IRA

Brief context on creation

This new program will award $14 billion to 2-3 national clean energy financing institutions (sometimes called green banks). These institutions will spend the funding to enable individuals, families, nonprofits, governments, small businesses, and others to access the capital they need to deploy clean technologies.

All funds must be spent in one of three priority project categories, and at least 40% must be spent in low-income and disadvantaged communities. The three priority categories are (1) Distributed Energy Generation, (2) Net-Zero Emissions Buildings, and (3) Zero-Emissions Transportation.

II.

FUNDS

Amount allocated

$14 Billion

Type of financing (grant, loan, etc.)

Grants

III. Eligibility requirements

ELIGIBILITY

Applicants had to meet the following requirements: (a) is a non-profit; (b) is designed to provide capital, leverage private capital, and provide other forms of financial assistance for the rapid deployment of low- and zero-emission products, technologies, and services; (c) does not take deposits other than deposits from repayments and other revenue received from financial assistance provided using grant funds under this program; (d) is funded by public or charitable contributions; and (e) invests in or finances projects alone or in

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conjunction with other investors.

Eligible recipients could have applied as individual applicants or as the “lead applicant” in a coalition.

Example of previous recipients

This program has not yet made any awards.

IV.

OPERATIONS

Current status (open, reviewing, closed)

The application period has closed, and EPA is currently reviewing applications, with announcements expected by March 2024.

Upcoming key dates (if applicable)

OCTOBER 12, 2023 - Application packages from national nonprofits were due.

BY MARCH 2024 - EPA expects the grant recipients will be selected

by March 2024.

BY JULY 2024 - Programs funded under this opportunity will start

by July 2024.

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Green Energy Trust, Municipal Governments, Local nonprofits

Recommendations for utilizing funds

Recipients of NCIF funding will need to understand the unique political, financial, and legal barriers Puerto Rico faces to achieve its energy transition. Puerto Rico faces many unique challenges in achieving 100% renewable energy, including, as outlined in other sections of this report, legal hurdles to taking advantage of some other IRA programs that the fifty states and Washington, DC do not face. When NCIF recipients are announced, they should ensure they design new programs in a way that ensures Puerto Ricans are eligible to receive the same levels of support that other Americans receive.

The PR Green Energy Trust must identify an Executive Director and promptly set up financing vehicles that could receive funding from NCIF funded entities. As the Territory's official green bank, Green Energy Trust would be an ideal entity to receive funding under the NCIF. However, if the trust fails to build the staffing and program capacity now adequately, it will be ill-prepared to apply for funding when financing is available later next year.

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Solar for All Fund Name and Link

Solar For All

Relevant Tags

✩, ✺, ◎ I.

BACKGROUND

Agency

EPA

Office

Solar for All (Greenhouse Gas Reduction Fund)

Year established

2022/23

Governing act/bill (if applicable)

Inflation Reduction Act

Brief context on creation

Solar for All is a new $7 billion program created by the EPA (as part of the GGRF) to spur the nationwide deployment of residential distributed solar energy. The solar projects will either be residential solar projects or residential serving community solar projects. Under the statute, 100% of program funds must be spent in low-income and disadvantaged communities.

II.

FUNDS

Amount allocated

$7 Billion

Type of financing (grant, loan, etc.)

Grants

III. Eligibility requirements

ELIGIBILITY

All states, territories, tribal governments and municipalities could apply (the deadline has passed). EPA anticipates making up to 60 awards under this announcement—up to 56 awards for each state/territory eligible in this competition, up to 5 awards set aside to serve American Indian and Alaska Native Communities, and up to 10 awards for multi-state programs.

Nonprofits along with municipal and tribal governments were eligible to apply as part of regional or national coalitions to serve either a group of American Indian and Native Alaskans communities or a group of otherwise “similar” communities in multiple states. Proposals on behalf of state and territory governments were not eligible to apply as part of a coalition with other states/territories.

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Example of previous recipients

This program has not yet made any awards.

IV.

OPERATIONS

Current status (open, reviewing, closed)

The application period has closed. EPA is currently reviewing applications, with announcements expected in early to mid-spring.

Upcoming key dates (if applicable)

September 24, 2023 - Application deadline Spring 2024 - Grantees will be selected/announced July 2024 - EPA anticipates to begin making awards September 30th, 2024 - All funds must be awarded under the IRA

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

According to the EPA website, the organizations below filed NOIs in mid-August 2023. However, in follow-up conversations with Puerto Rican officials, our group heard that at least one of the below NOIs was later modified to change the lead applicant.

PUERTO RICO NOTICES OF INTENT (Aug 2023) 1. Territory government entities: o Puerto Rico Department of Housing 2. Nonprofit entities: o Ahora Inc. o Catholic Climate Covenant o Hispanic Federation Inc. o La Fundación del Perpetuo Socorro (FPS) o PathStone Corporation o Puerto Rico Clean Energy Nonprofit Corporation 3. Municipal entities o Municipality of Bayamón

Recommendations for utilizing funds

EPA and any Puerto Rican Solar for All grant recipients must account for the unique political, financial, and legal barriers Puerto Rico faces to achieve its energy transition. Puerto Rico faces many unique challenges in achieving 100% renewable energy, including, as outlined in other sections of this report, legal hurdles to taking advantage of some other IRA programs that the fifty states and Washington, DC do not face. EPA must award funding in a way that ensures Puerto Ricans are eligible to receive the same levels of support that other Americans receive.

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Department of Housing and Urban Development Funding Opportunities Community Development Block Grant Disaster Recovery Energy Grid Rehabilitation and Reconstruction Cost Share Program Fund Name and Link

ER1: Energy Grid Rehabilitation and Reconstruction Cost Share Program

Relevant Tags

✢ I.

BACKGROUND

Agency

Office of the Assistant Secretary for Community Planning and Development, HUD

Office

CDBG-DR Energy: ER1 (Energy Grid Rehabilitation and Reconstruction Cost Share Program)

Year established

The ER1 program was announced by HUD in 2021, from CDBG-DR appropriations made in 2018 and 2020

Governing act/bill (if applicable)

The “Further Additional Supplemental Appropriations for Disaster Relief Requirements Act of 2018” allocated roughly $28 billion in CDBG–DR funds; of this, $1.93 billion was for “electrical power system enhancements and improvements” for Puerto Rico’s most distressed areas.66

Brief context on creation

Of the $1.93 billion allocated specifically to Puerto Rico, HUD has allocated $500 million for the Energy Grid Rehabilitation Cost Share Program, or ER1.67 The ER1 program is specifically intended to cover the nonfederal match requirement for FEMA’s Public Assistance allocation. The FEMA Accelerated Awards Strategy, or FAASt, is a funding mechanism created by FEMA to expedite critical energy infrastructure projects, and which requires a 10% nonfederal funding match. With the Puerto Rico Department of Housing as the recipient and PREPA as the subrecipient, ER1

“Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Disaster Recovery Grantees; Electrical Power Systems in Puerto Rico and the U.S. Virgin Islands.” n.d. https://www.govinfo.gov/content/pkg/FR-2021-06-22/pdf/2021-12934.pdf.

67 “Electrical System Enhancements.” 2021. CDBG. October 11, 2021. https://cdbg-dr.pr.gov/en/electrical-systemenhancements/.

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funding can be used to meet this 10% non-federal match requirement for FAASt projects.

Intended audience

Puerto Rico Department of Housing, PREPA, additional subrecipients (as outlined by FAASt)

II.

FUNDS

Amount allocated

$500 million as matching funds

Type of financing (grant, loan, etc.)

10% non-federal funding match for FAASt projects.

III.

ELIGIBILITY

Eligibility requirements

The Subrecipient must have been accepted into a federal agency’s disaster recovery program and have been determined by the lead federal agency to have eligible projects to participate in ER1 Program. The eligible Subrecipient for the ER1 Program is PREPA and/or its designated official representative.

Example of previous recipients

N/A

IV. Current status (open, reviewing, closed) V.

OPERATIONS ER1 Funds are currently being used to fund FAASt approved projects

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

PRDOH, PREPA, Luma, additional subrecipients under the FAASt PW

Recommendations for utilizing funds

According to the FAASt Project Execution dashboard, none of PREPA’s projects in the FAASt pipeline are related to renewable energy. This is despite ER1 funding explicitly allowing the cost of renewable generation equipment as eligible, and “Renewable Energy being listed as the top “key Priority” on the programs website. PREPA and HUD should begin folding in renewable projects into their project selection and funding, as they qualify for all baseline eligibility requirements.

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Electrical Power Reliability and Resilience Program Fund Name and Link

ER2: Electrical Power Reliability and Resilience Program

Relevant Tags

✢, ✩, ✧, ⧫, ◎ I.

BACKGROUND

Agency

Office of the Assistant Secretary for Community Planning and Development, HUD

Office

CDBG-DR Energy: ER2 (Electrical Power Reliability and Resilience Program)

Year established

Long term disaster recovery funds first appropriated in 1992.

CDBG-DR funding is based on disaster specific congressional appropriations.

Governing act/bill (if applicable)

The “Further Additional Supplemental Appropriations for Disaster Relief Requirements Act of 2018” allocated roughly $28 billion in CDBG-DR funds; of this, $1.93 billion was for “electrical power system enhancements and improvements” for Puerto Rico’s most distressed areas.68

Brief context on creation

Of the $1.93 billion allocated specifically to Puerto Rico, HUD 1 has allocated $1.3 billion for the Electrical Power Reliability and Resilience Program, or ER2.69 The CDBG-DR Energy Electrical Power Reliability and Resilience (ER2) Program’s goal is to improve “electric system reliability, affordability, and resiliency” through electric system enhancements or improvements.70 Projects are aimed at decentralized sources of power generation, distribution, and storage to minimize disruptions. These projects include microgrids and distributed energy resources, renewable generation, combined heat and power systems, and battery storage systems.

“Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant Disaster Recovery Grantees; Electrical Power Systems in Puerto Rico and the U.S. Virgin Islands.” n.d. https://www.govinfo.gov/content/pkg/FR-2021-06-22/pdf/2021-12934.pdf.

69 “Electrical System Enhancements.” 2021. CDBG. October 11, 2021. https://cdbg-dr.pr.gov/en/electrical-systemenhancements/.

70 “Electrical Power Reliability and Resilience Program.” 2023. CDBG. June 27, 2023. https://cdbgdr.pr.gov/en/electrical-power-reliability-and-resilience-program/.

68

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Intended audience

Government of Puerto Rico’s agencies and authorities undertaking projects to support electrical power system improvements; Publicprivate partnerships, Municipalities; For-Profit Businesses; Public Hospitals/Health System Entities; Non-Governmental Organizations/Not-for-Profit Entities that meet the capacity and experience requirements.

II.

FUNDS

Amount allocated

$1.3 Billion, with minimum awards of $5 Million per projects

Type of financing (grant, loan, etc.)

Grants

III.

ELIGIBILITY

Eligibility requirements

An eligible ER2 funded project must: ● Meet HUD national objectives ● Meet electrical power systems improvements CDBG-DR eligible activity requirements ● Address an eligible unmet need after accounting for all duplication of benefits ● Be feasible and sustainable, with all other funding sources firmly committed if applicable

Example of previous recipients

N/A

IV.

OPERATIONS

Current status (open, reviewing, closed)

Currently open for applications

Upcoming key dates (if applicable)

Application Period: August 15, 2023 to January 30, 2024

V. Potential relevant parties

PUERTO RICO SPECIFIC ANALYSIS Eligible recipients of project funds include: ● Government of Puerto Rico’s Agencies, Authorities, Trusts or Boards (undertaking projects to support electrical power system improvements) ● Public-private partnerships ● Units of General Local Government (Municipalities); For-Profit Businesses ● Public Hospitals or Health System Entities ● Non-Governmental Organizations (501(c)(3))

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●

Recommendations for utilizing funds

Not-for-Profit Entities that meet the capacity and experience requirements.

Focus funds for creating microgrids in low-income communities which experienced the longest blackout periods during prior hurricanes. Prioritizing the most vulnerable communities will ensure that potentially lifesaving energy needs can be met during future disasters.

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Community Energy and Water Resilience Installations Program Fund Name and Link

CEWRI: Community Energy and Water Installations Program

Relevant Tags

✺ BACKGROUND

Agency

HUD, Puerto Rico Department of Housing

Office

CDBG-DR CEWRI Program (includes New Energy, Solar Incentive, and Community Installations subprograms)

Year established

2021

Governing act/bill (if applicable)

Individual supplemental appropriations

Brief context on creation

The CEWRI Program was created from CDBG-DR appropriations following Hurricanes Maria and Irma.71 The CEWRI program provides energy and water efficiency and resiliency installation to eligible cases being rehabilitated, reconstructed, relocated, or provided with a new construction under the CDBG-DR R3 Program, without any cost to the applicant.72 The eligible household units will receive improvements which include the installation of a solar (photovoltaic) system with a battery system for essential plug loads to supply energy in the event of a power outage situation and installation of a water storage system. For the energy resilience installation, the photovoltaic system with battery backup will allow eligible applicants the ability to run critical loads, some household appliances, life-support devices, and permit for shelterin-place options during outages. This program will be used as an add-on to or potentially integrated within the applicable CDBGDR program, such as the R3 Program.

Intended audience

Homeowners, qualifying communities, and registered Renewable Energy Installation Companies (REICs)

II.

FUNDS

“OVERSIGHT HEARING COMMITTEE ON NATURAL RESOURCES U.S. HOUSE OF REPRESENTATIVES.” 2022. GovInfo. https://www.govinfo.gov/content/pkg/CHRG117hhrg49823/pdf/CHRG-117hhrg49823.pdf. (“Puerto Rico Disaster Recovery Action Plan” 2023) 72 “Community Energy and Water Resilience Installations Program,” CDBG (blog), October 27, 2021, https://cdbgdr.pr.gov/en/community-energy-and-water-resilience-installations-program/.

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Amount allocated

$395 Million

Type of financing (grant, loan, etc.)

Grants

III.

ELIGIBILITY

Eligibility requirements

There are three subprograms under the CEWRI program: New Energy, Solar Incentive, and Community Installations. ● Beneficiaries of the New Energy Program must qualify as very-low income, as well as own and use the property as the primary residence. ● Beneficiaries of the Solar Incentive Program must have an income between 0% and 200% of Area Median Family Income to qualify for up to 30% of a renewable energy system installation. ● Beneficiaries of the Community Installations program are chosen by the PRDOH based on community disruption time, vulnerability, and number of residents.

Of members in the selected communities, selected residents must earn between 1% and 200% Area Median Family Income.

All beneficiaries must be homeowners already participating in the R3 Program. Applicants must use an approved and registered REIC for system installation.

Example of previous recipients

Individual homeowners and families in the R3 Program.

IV. Current status (open, reviewing, closed)

OPERATIONS Each of the Community Energy and Water Resilience Installations’ subprograms have different application windows: CEWRI- New Energy Program: March 27-August 31, 2023 (May reopen in the future) CEWRI- Solar Incentive Program: All tickets for program participation have been distributed, and the subprogram is closed to new applicants CEWRI- Community Installations: Communities in households are selected by the subprogram based on need, not application.

Upcoming key dates (if applicable)

V.

New Energy Program Second funding round (dates unknown) Community Installations Program community selection release (dates unknown)

PUERTO RICO SPECIFIC ANALYSIS

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Potential relevant parties

This program is specific to the Puerto Rico Department of Housing’s Disaster Recovery and Mitigation plan.

Recommendations for utilizing funds

Foster communication between the Community Installations subprogram and the ER2 (Electrical Power Reliability and Resilience Program) to ensure avoid duplication of work, impact the most vulnerable communities, and maximize project funding opportunities.

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Green Resilient Retrofit Program Fund Name and Link

Green and Resilient Retrofit Program

Relevant Tags

✺, ✧ I.

BACKGROUND

Agency

Department of Housing and Urban Development

Office

Green Resilient Retrofit Program

Year established

2023

Governing act/bill (if applicable)

IRA

Brief context on creation

“Title III of the IRA, (Publ. L. 117-169), titled “Improving Energy Efficiency or Water Efficiency or Climate Resilience of Affordable Housing”, provides funding for direct loans and grants to fund projects that improve energy or water efficiency, enhance indoor air quality or sustainability, implement the use of zero-emission electricity generation, low-emission building materials or processes, energy storage, or building electrification strategies, or address climate resilience, of eligible HUD-assisted multifamily properties”

Intended audience

There are three award types: Elements, Leading Edge, and Comprehensive.

Elements awards are for owners who are already “materially advanced” in a recapitalization transaction and the project includes targeted utility efficiency, carbon emissions reduction, renewable energy, and climate resiliency measures.

Leading Edge awards are intended for properties in the planning stages of a recapitalization effort.

Comprehensive awards are designed for people interested in improving their property’s utility efficiency and resilience to climate hazards but may not be ready for a recapitalization project.

II. Amount allocated

FUNDS

Elements: Funding of up to $40K per unit or $750K per property. Up to 20 awards with $140 million in total funding.

Leading Edge: Funding of up to $60K per unit or $10 million per

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property. Up to 100 awards with $400 million in funding.

Comprehensive: Funding of up to $80K per unit or $20 Million per property. Up to 300 awards with $1.47 billion in funding.

Type of financing (grant, loan, etc.)

Grants and direct loan subsidy

III. Eligibility requirements

ELIGIBILITY

Own a property and either be: in the beginning stages of planning a recapitalization project, actively planning a project, or working to update your existing infrastructure to clean standards.

Example of previous recipients IV.

OPERATIONS

Current status (open, reviewing, closed)

Elements: Closed Leading Edge: Closed on November 6, 2023 Comprehensive: Closed

Upcoming key dates (if applicable)

Leading Edge: Closed on November 6

V.

PUERTO RICO SPECIFIC ANALYSIS

Potential relevant parties

Private businesses

Recommendations for utilizing funds

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