Oversight Hearing | Indian and Insular Affairs Subcommittee

The House Committee on Natural Resources GOP's Indian and Insular Affairs Subcommittee held an oversight hearing on September 27, 2024, focusing on the ongoing challenges and federal funding related to the reconstruction and modernization of Puerto Rico's electrical grid following hurricanes Irma and Maria. The hearing highlighted the $21 billion in federal funds obligated for Puerto Rico's energy recovery, primarily from FEMA, and discussed the roles of private operators LUMA Energy and Genera, which manage transmission, distribution, and generation assets respectively. Witnesses detailed significant challenges including aging infrastructure, vegetation management delays due to regulatory and environmental reviews, and the impact of PREPA's unresolved bankruptcy on financing and operations. The hearing also addressed the slow pace of project approvals and reimbursements from FEMA, with LUMA having submitted $12.3 billion in projects but only receiving approval for about $1.1 billion. Members expressed frustration over the Biden-Harris administration's absence from the hearing and called for regulatory reforms to expedite vegetation clearing and infrastructure upgrades. Discussions included the balance between renewable energy goals and the need for reliable baseload generation, with proposals for natural gas and LNG facilities to improve grid stability. The committee emphasized the urgency of improving Puerto Rico's energy reliability and affordability, with plans to submit further questions to federal agencies for oversight.