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PS 1197

Para enmendar los artículos 3 y 8 de la Ley Núm. 44 de 21 de junio de1988, según enmendada, conocida como “Ley de la Autoridad para el Financiamiento de la Infraestructura de Puerto Rico”, con el propósito de crear un Comité Intergubernamental encargado de confeccionar un plan para el estudio, establecimiento, implantación, desarrollo, financiamiento, construcción y manejo del “Sistema de la Reserva Estratégica de Combustible de Puerto Rico”, el cual consistirá de un sistema de tanques de abastecimiento de combustibles para mitigar el impacto de cualquier emergencia que acontezca en Puerto Rico, debido a desastres creados por la naturaleza o causados por el hombre; y para otros fines relacionados.

2025-2028 Session

Creates an Intergovernmental Committee to study, finance, design, and build a Puerto Rico Strategic Fuel Reserve System with designated sites and ongoing management.

Remitido a la Comisión de Reglas y Calendario del Senado
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Bill Summary · PS 1197

Summary of Bill PS 1197 (Session 2025-2028) – Puerto Rico

Title

Amends Articles 3 and 8 of Law No. 44 of June 21, 1988, as amended (the Puerto Rico Infrastructure Financing Authority Act) to create an Intergovernmental Committee tasked with developing a plan for study, establishment, implementation, development, financing, construction, and management of the “Puerto Rico Strategic Fuel Reserve System.” This system would consist of fuel storage tanks to mitigate the impact of emergencies in Puerto Rico caused by natural disasters or man-made events, and related purposes.

Purpose and Intent

  • Establish a formal framework to study and create a Strategic Fuel Reserve System for Puerto Rico.
  • Ensure continuity of energy supply and essential government services during emergencies or supply disruptions.
  • Reduce Puerto Rico’s vulnerability to global energy market fluctuations and geopolitical events affecting fuel delivery.

Key Provisions

Article 3 – Definitions (amendment)

  • Updates or clarifies definitions within the law to include "infrastructure" as a broad category relating to energy systems, including an emphasis on fuel storage tanks for emergencies.

Article 8 – Creation of the Intergovernmental Committee

  • Creates the “Intergovernmental Committee to oversee the creation, design, financing, and construction of the Puerto Rico Strategic Fuel Reserve System.”
  • Committee Members (institutions involved):
    • Department of Public Safety
    • Puerto Rico Electric Power Authority (AEE)
    • Department of Consumer Affairs
    • Puerto Rico Infrastructure Financing Authority (AFI)
    • Puerto Rico Fiscal Agency and Financial Advisory Authority
    • Energy Bureau of Puerto Rico
    • Department of Economic Development and Commerce – Energy Policy Program
  • Responsibilities of the Committee:
    • Develop an integrated plan for the study, establishment, implementation, development, financing, construction, and management of the reserve system.
    • Define the geographic areas to be designated and acquired for the reserve.
    • Assess expropriation costs (if any) including administrative and operational costs.
    • Outline financing mechanisms to fund the project.
    • Have AFI implement or manage the work plan, including a conceptual plan, construction stages, and timelines.
    • Establish directives and programmatic standards for the project.
    • Upon completion and with committee approval and available financing, AFI would rehabilitate, repair, preserve, replace, extend, upgrade, equip, and maintain portions of the infrastructure and related equipment necessary for the fuel storage system’s proper operation.
    • Report the development plan, amendments, and studies to the Governor and the Puerto Rico Legislature.
  • Public Lands/Properties Provisions:
    • The Industrial Promotion Company, Land Authority, Lands Authority, Ports Authority, and Department of Transportation and Public Works will inventory unused land or properties (preferably with basic infrastructure like roads, drainage) to make them available, free of charge, to locate or construct the emergency fuel storage tanks, subject to limitations of fiscal compliance law (Law 26-2017, as amended).

Reorganization and Supremacy

  • Reindexes current articles of Law 44 to accommodate the new structure.
  • Establishes primacy of the new law during its effective period; it overrides conflicting laws, orders, or regulations.
  • Provisions are to be interpreted broadly in favor of enabling the Intergovernmental Committee’s duties.

Section 6–Severability and Section 7–Effective Date

  • Severability: If any clause is unconstitutional, the remainder remains in effect.
  • Effective Date: This law would take effect immediately upon approval.

What Would be Affected

  • Legal framework governing energy infrastructure and emergency preparedness.
  • Multiple Puerto Rico agencies that would participate in the Intergovernmental Committee.
  • Potential land use and acquisition processes for sites designated for fuel storage tanks.
  • Financing and management responsibilities for developing a strategic fuel reserve system.

Procedural and Timeline Aspects

  • Action History indicates:
    • April 14, 2026: Bill filed and referred to committees.
    • April 16, 2026: Appeared in First Reading in the Senate; referred to committees.
  • The text envisions a phased plan (study, design, financing, construction) with a timeline to be determined by the committee and AFI, contingent on funding availability.

Potential Impacts and Considerations

  • Pros:
    • Improved resilience of energy supply during hurricanes, disasters, or supply chain disruptions.
    • Clarified interagency roles and funding mechanisms for critical infrastructure.
    • Potential economic activity tied to siting, construction, and maintenance of storage facilities.
  • Cons/Considerations:
    • Significant capital cost and ongoing maintenance funding requirements.
    • Land/real estate acquisition and environmental assessments for storage tanks.
    • Intergovernmental coordination challenges and potential bureaucratic hurdles.
    • Need for clear governance, security, and safety standards for fuel storage.

If you’d like, I can provide a side-by-side comparison with current law (Law No. 44) and a simplified timeline outline for the committee’s expected milestones.

Compiled from official sources — confirm details with the bill’s official record.

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