Puerto Rico issues executive order
to expand energy emergency declaration

This executive action marks a critical step in Puerto Rico’s ongoing effort to stabilize its grid and build a more resilient power system for the future.

Read the official Resolution & Order below:

GOVERNMENT OF PUERTO RICO

LA FORTALEZA

SAN JUAN, PUERTO RICO

Administrative Bulletin No.: OE-2025-016

EXECUTIVE ORDER BY THE GOVERNOR OF PUERTO RICO, HON. JENNIFFER A. GONZÁLEZ COLÓN, TO MODIFY AND EXPAND THE ENERGY EMERGENCY IN PUERTO RICO, ALIGN PRIORITIES WITH THE NATIONAL ENERGY EMERGENCY DECLARATION, AND AUTHORIZE NECESSARY MEASURES TO CARRY OUT REPAIRS ON THE SYSTEM AND INCREASE GENERATION CAPACITY

WHEREAS: The Government of Puerto Rico has the constitutional duty to safeguard public order, as well as to protect the life, safety, and property of all its citizens.

WHEREAS: Electric power is an essential and indispensable service to ensure public safety, the operation of commercial and industrial activities, and the functioning of critical infrastructure such as water systems, telecommunications, and other basic services.

WHEREAS: Over the past decades, Puerto Rico's electrical system has suffered marked deterioration and neglect, due to the lack of necessary resources for its proper maintenance and the execution of essential repairs.

WHEREAS: In 2017, Puerto Rico was devastated by Hurricane Maria, classified as the fourth largest natural disaster in the history of the United States of America. This event destroyed the Island's electrical grid, and it took more than a year to temporarily restore its infrastructure. Subsequently, in 2020, a series of earthquakes severely affected the generation infrastructure located in southern Puerto Rico. Unfortunately, in 2022, Hurricane Fiona again impacted the Island, further aggravating the already fragile and vulnerable electrical grid.

WHEREAS: Most of Puerto Rico's electrical infrastructure was designed in the 1960s, with a projected useful life of between twenty (20) to twenty-five (25) years. Consequently, in addition to the damage suffered from large-scale natural events, the system has exceeded its useful life by more than three decades. These conditions have led to the fact that, despite the investment of millions of dollars in repairs and temporary solutions, the generation units continue to present frequent failures and forced outages, evidencing their critical state.

WHEREAS: Currently, repairs and maintenance work are being carried out on multiple generation units at various plants on the Island. Despite this, the units in operation have continued to experience malfunctions that have substantially reduced electric generation in Puerto Rico.

WHEREAS: According to industry standards and best practices, Puerto Rico must have an installed generation capacity of at least four thousand five hundred megawatts (4,500 MW) to meet continuous demand and consumption peaks adequately.

WHEREAS: Although renewable energy sources have begun to be installed in Puerto Rico, currently only about two percent (2%) of dispatchable electric generation comes from these sources. Likewise, residential solar systems provide partial relief during the day, but lack generation capacity during peak consumption hours —between six in the evening (6:00 p.m.) and eleven at night (11:00 p.m.)— due to the lack of sunlight.

WHEREAS: On December 31, 2024, a series of events affected generation units operated by Genera PR, AES, and EcoEléctrica, causing a considerable loss in the generation capacity of the electrical system. This was compounded by a major breakdown on February 14, 2024, in Unit I of the Aguirre Power Plant, which reduced base generation by two hundred eighty megawatts (280 MW). To date, Unit 5 of the Costa Sur Power Plant has presented malfunctions that call into question its stability and reliability, representing a potential additional loss of three hundred megawatts (300 MW).

WHEREAS: The total generation capacity —including assets of the Electric Power Authority, renewable sources, and private operators— barely reaches three thousand megawatts (3,000 MW), representing an estimated deficiency of approximately thirty-three percent (33%) compared to the required capacity.

WHEREAS: This deficiency has caused multiple load relief events over the past year. Facing the summer, when energy consumption on the Island reaches its highest levels, it is imperative to adopt urgent and effective measures to address the energy crisis in Puerto Rico.

WHEREAS: Starting on March 25, 2021, the Governor of Puerto Rico decreed, through Executive Order No. 2021-024, a state of infrastructure emergency, including energy infrastructure, and established an expedited process to evaluate and approve projects for the reconstruction and modernization of the infrastructure.

WHEREAS: On January 2, I issued Executive Orders No. 2025-002 and 2025-003 to simplify and expedite permits for projects funded with federal funds, critical or strategic projects, and emergency projects. Likewise, on January 9, I issued Executive Order No. 2025-005 to establish, under the existing energy emergency, the Office of the Energy Czar, with powers focused on achieving efficiency, alignment of purpose, supervision of operators, and acceleration of the recovery of the electrical system.

WHEREAS: On January 20, 2025, the President of the United States, Donald J. Trump, issued two presidential Executive Orders declaring an emergency to leverage American energy (Executive Order No. 14154) and declaring a national energy emergency (Executive Order No. 14156). These orders establish the urgency and need to eliminate bureaucracy, comply with applicable laws, accelerate permitting processes, and prioritize efficiency and certainty over any other objective that may delay and create ambiguity in permitting processes. They expressly order all relevant federal agencies to eliminate any delays in permitting processes, leveraging mechanisms of exemptions, general permits, and emergency decrees and regulations, among others, to accelerate the granting of federal permits.

WHEREAS: As provided by Executive Order No. 2025-005, and Presidential Executive Orders No. 14154 and No. 14156, the Government of Puerto Rico and the Energy Czar are already in conversations with their counterparts in the federal government to expedite and execute multiple critical and priority energy projects, focused on: (i) stabilizing energy generation, (ii) constructing new and modern base generation, and (iii) rebuilding and modernizing the electrical grid.

WHEREAS: The Government of Puerto Rico maintains its firm commitment to the transition towards renewable energy sources, without neglecting its unavoidable responsibility to ensure the health, safety, well-being, and stability of the electrical system, taking all necessary actions to safeguard the lives and integrity of our citizens.

WHEREAS: Article 5.10 of Law No. 20-2017, as amended, known as the Law of the Department of Public Safety of Puerto Rico, empowers the Governor to declare a state of emergency and to "give effect to those regulations, orders, plans, or state measures for emergency or disaster situations or vary them at her discretion," as well as "issue, amend, and revoke those regulations and issue, amend, and rescind those orders deemed convenient to govern during the state of emergency or disaster."

THEREFORE: I, JENNIFFER A. GONZÁLEZ COLÓN, Governor of Puerto Rico, by virtue of the inherent powers of my office and the authority conferred upon me by the Constitution and the laws of Puerto Rico, hereby decree and order the following:

SECTION 1: DECLARATION OF EMERGENCY: I declare a modification and expansion of the state of emergency over Puerto Rico's electrical system, including, but not limited to, transmission and distribution systems, as well as generation, and auxiliary infrastructure to operate Puerto Rico's electrical system reliably, affordably, and in compliance with applicable laws, including environmental laws — and furthermore modernize and reinforce said system in line with our times and circumstances.

It is imperative to (i) allocate and authorize short-term temporary generation; (ii) carry out major repairs to generation units operating on fossil fuels, such as "Ultra Low Sulfur Diesel," natural gas, and "Bunker C" with the support of said temporary generation; (iii) expedite the prompt construction of base load generation plants; and (iv) accelerate the reconstruction and modernization of the electrical grid — with the support of state and federal agencies in granting the pertinent emergency permits or authorizations so that permitting does not become an obstacle or the reason for delays in these critical infrastructure projects under the emergency.

Similarly, it is ordered to accelerate repair and maintenance work on transformers, transmission and distribution lines, and electrical substations, with the purpose of mitigating risks associated with system failures and ensuring continuity of service.

SECTION 2: ACTIVATION OF EXPEDITED PROCESS: During the validity of this emergency declaration, the Electric Power Authority (AEE), LUMA Energy, Genera PR, AES, and EcoEléctrica are fully and absolutely exempt from any obligation to request, manage, file, or comply with any permit, consultation, authorization, endorsement, comment, recommendation, certification, or collateral procedure before any government agency or office, regarding repair, reconstruction, and/or replacement work of equipment or components of Puerto Rico's electrical system.

This exemption applies comprehensively to any action or requirement that, under ordinary circumstances, would be required by law or regulation, and includes —without being understood as a limitation— permits, certifications, or endorsements issued by: (1) Office of Permit Management (OGPe); (2) Planning Board; (3) Department of Natural and Environmental Resources (DRNA); (4) Puerto Rican Culture Institute; and any other agency or office that regulates repair, reconstruction, and/or replacement work of equipment of Puerto Rico's electrical system. This exemption includes, but is not limited to, the requirements established in laws, regulations, or ordinary procedures of the agencies or offices. However, the Energy Bureau will continue to exercise its functions as the regulatory entity of Puerto Rico's energy public policy.

The necessary actions for the execution of these works may be carried out immediately, without the need for prior permits, case filings, or any administrative procedures. However, these actions must be executed in compliance with the applicable minimum safety standards and in strict adherence to current federal regulations and norms.

SECTION 3: RESPONSIBILITY OF THE ENERGY CZAR: The Energy Czar, through the authorities conferred in Administrative Bulletin No. OE-2025-005, shall supervise the activities carried out under this Executive Order. Additionally, the Energy Czar will provide the necessary assistance and coordination for the efforts required to implement this Executive Order.

The Energy Czar will also ensure that the mechanisms for emergency permits and authorizations for energy projects of the Government of Puerto Rico are aligned and consistent with parallel processes at the federal level under the Presidential Executive Orders and applicable federal regulations, including categorical exclusions, emergency powers, exemptions, emergency administrative orders, applicable to energy projects (electrical grid, generation plants, and other supporting infrastructure equipment) under the regulation of, among others, the federal Environmental Protection Agency (USEPA), the Federal Department of Energy (USDOE), FEMA/DHS, and the Council on Environmental Quality (CEQ).

The Energy Czar will make every effort to comply with the aforementioned, including close and substantive coordination with the federal government and state agencies.

SECTION 4: It is important to emphasize that the purpose of this Executive Order, and the previously issued ones, is to focus on the use of the greatest common sense, in compliance with applicable laws, in response to the urgency and energy emergency we face. This includes the use and reference — in the process of evaluating and approving energy projects — of any reliable data source instead of having to manage new scientific and technical studies, except in clearly relevant cases. This, with the goal of immediately advancing and achieving the objectives of (i) securing short-term temporary generation; (ii) carrying out major repairs to the generation plants operated and maintained by Genera; (iii) advancing the construction of new generation; and (iv) expediting the reconstruction and modernization of the electrical grid.

SECTION 5: REPORT: Within thirty (30) days of completing each project processed in accordance with the provisions of this Executive Order, the Electric Power Authority, LUMA Energy, Genera PR, AES, and EcoEléctrica must submit a detailed report to the Energy Bureau and the Public-Private Partnerships Authority on the expenses incurred at the close of the work.

SECTION 6: DEFINITION OF THE TERM AGENCY: For the purposes of this Executive Order, the term "agency" refers to any agency, instrumentality, office, or dependency of the Executive Branch of the Government of Puerto Rico, including public corporations, regardless of their name.

SECTION 7: NO CREATION OF ENFORCEABLE RIGHTS: This Executive Order is not intended to create substantive or procedural rights in favor of third parties, enforceable before any judicial, administrative, or other forum against the Government of Puerto Rico, its agencies, its officers, employees, or any other person.

SECTION 8: SEVERABILITY: The provisions of this Executive Order are independent and separate from each other, and if a court with jurisdiction and competence declares any part unconstitutional, null, or invalid, it shall be done through applicable legal provision.

SECTION 9: REPEAL: This Executive Order nullifies any other executive order that is wholly or partially incompatible with this one to the extent of such incompatibility.

SECTION 10: PUBLICATION: This Executive Order must be immediately presented to the Department of State and ordered for the widest publication, including its dissemination on the official digital portals of the Government of Puerto Rico.

SECTION 11: EFFECTIVENESS: This Executive Order shall take effect immediately and remain in force until expressly amended or revoked by a subsequent Executive Order or through applicable legal provision.

IN TESTIMONY WHEREOF, I issue this Executive Order under my signature and affix the seal of the Government of Puerto Rico, in San Juan, Puerto Rico, today, April 2, 2025.

JENNIFFER A. GONZÁLEZ COLÓN

GOVERNOR

Promulgated in accordance with the law, today, April 2, 2025.

VERONICA FERRAIUOLI HORNEDO

SECRETARY OF STATE