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FLOOR 07/22/2024-SPECIAL ORDERED BILL NO. 35-0311 Thirty-Fifth Legislature of the Virgin Islands July 22, 2024 An Act mandating the Virgin Islands Water and Power Authority to seek technical assistance from the United States Department of Energy, the United States Army Corps of Engineers, and relevant federal government agencies to modernize its electrical grid and water systems, improve reliability, eithance efficiency, and incorporate advanced technologies PROPOSED BY: Senators Donna A. Frett-Gregory, Milton E. Potter, Dwayne M. DeGraff, Marvin A. Blyden, Alma Francis Heyliger, Novelle E. Francis, Jr., Marise C. James, Diane T. Capehart, Ray Fonseca, Samuel Carriόn and Angel L. Bolques, Jr. WHEREAS, the existing electrical grid infrastructure of the Virgin Islands is outdated 1 and in need of modernization; and 2 WHEREAS, modernizing the grid is essential for improving reliability, reducing 3 outages, and enhancing overall efficiency; and 4 WHEREAS, advanced technologies, including smart grids, renewable energy 5 integration, and energy storage solutions, are necessary for a sustainable and resilient electrical 6 system; and 7 WHEREAS, the United States Department of Energy, the United States Army Corps of 8 Engineers, and other federal agencies possess the expertise and resources needed to assist with 9 the modernization of the electrical grid of theVirgin Islands; and 10 2 WHEREAS, the United States Department of Energy, the United States Army Corps of 1 Engineers, and other federal agencies possess the expertise in assessing the true condition of 2 the WAPA’s infrastructure and identifying areas in need of repair or replacement, and 3 developing long-term infrastructure improvement plans; and 4 WHEREAS, the United States Department of Energy, the United States Army Corps of 5 Engineers, and other federal agencies can provide technical assistance in implementing energy 6 efficient measures and renewable energy solutions to help Virgin Islands Water and Power 7 Authority (WAPA) reduce its operational costs, improve system reliability, and reduce its 8 environmental impact; and 9 WHEREAS, the United States Department of Energy, the United Sates Army Corps of 10 Engineers, and other federal agencies can provide technical assistance in modernizing the 11 WAPA’s electrical grid to respond to natural disasters, or other emergencies; and 12 WHEREAS, the United States Department of Energy, the United States Army Corps of 13 Engineers, and other federal agencies can provide training and capacity-building support to 14 help WAPA staff acquire the necessary skills and expertise to manage and maintain its 15 infrastructure effectively; and 16 WHEREAS, by leveraging technical assistance from the United States Department of 17 Energy, the Army Corps of Engineers, and other federal agencies, WAPA can access expertise, 18 resources, and best practices to address its infrastructure challenges, improve operational 19 efficiency, and enhance its financial sustainability; Now, Therefore 20 Be it enacted by the Legislature of the Virgin Islands: 21 SECTION 1. The Virgin Islands Electrical Grid Technical Assistance and 22 Modernization Act 23 SHORT TITLE 24 3 This act may be cited as the " Virgin Islands Electrical Grid Technical Assistance and 1 Modernization Act." 2 PURPOSE 3 This act mandates that the Virgin Islands Water and Power Authority seeks technical 4 assistance from the United States Department of Energy, the United States Army Corps of 5 Engineers, and relevant federal government agencies to modernize its electrical grid, improve 6 reliability, enhance efficiency, and incorporate advanced technologies. 7 DEFINITIONS 8 For the purposes of this Act: 9 (a) “WAPA” means the Virgin Islands Water and Power Authority, established as a 10 semiautonomous agency pursuant to title 30 the Virgin Islands Code, chapter 5. 11 (b) “Virgin Islands Energy Office” or “VIEO” means the agency established pursuant 12 to Title 3 Virgin Islands Code, chapter 1, charged with the planning, oversight, and coordination 13 of energy programs according to federal law. 14 (c) “Department of Energy" (USDOE) means the United States Department of Energy. 15 (d) "Army Corps of Engineers" means the United States Army Corps of Engineers. 16 (e) "Federal Government Agencies" means any relevant federal entities with expertise 17 in electrical grid modernization. 18 IMPLEMENTATION 19 (a) Not later than 60 days of the enactment of this act, the Virgin Islands Water and 20 Power Authority shall initiate contact with the Department of Energy, the Army Corps of 21 Engineers, and other relevant federal agencies to begin the process of seeking technical 22 assistance as required under this act. 23 4 (b) Not later than 270 days of the enactment of this act, the Virgin Islands Water and 1 Power Authority shall submit a proposed modernization plan to the Legislature of the Virgin 2 Islands outlining the steps and timeline for implementing recommended upgrades and 3 improvements to their electrical grid infrastructure. 4 TECHNICAL ASSISTANCE REQUIREMENT 5 (a) The Virgin Islands Water and Power Authority shall seek technical assistance and 6 collaboration from the United States Department of Energy and the United States Army Corps 7 of Engineers, and other relevant federal agencies as the United States Department of Energy 8 considers necessary, for the purpose of modernizing its electrical grid infrastructure. 9 (b) The technical assistance to be sought must include: 10 (1) conducting a thorough assessment of current electrical grid infrastructure to 11 include vulnerabilities, shortcomings, and areas in need of repair or replacement; 12 (2) developing a comprehensive plan for grid modernization to enhance 13 efficiency, reliability, and resilience, incorporating recommendations and best practices 14 provided by the federal agencies; 15 (3) prioritizing the integration of renewable energy sources, energy storage 16 solutions, and smart grid technologies 17 (4) developing a cost-benefit analysis regarding the feasibility of providing 18 WAPA residential customers small scale home battery backup, using solar power, to 19 lower grid costs for all customers while giving customers reliable, sustainable electricity 20 during grid disruptions or electric outages; 21 (5) seeking technical assistance regarding the feasibility of establishing a home 22 battery pilot program similar to that first offered by Vermont’s Green Mountain Power 23 to its residential customers in 2015; 24 5 (6) implementating advanced technologies for monitoring, control, and response 1 to grid disruptions; and 2 (7) Creating training programs for utility personnel on modern grid management 3 techniques and technologies, and capacity-building support to help WAPA staff acquire 4 the necessary skills and expertise to manage and maintain its infrastructure effectively. 5 REPORTING REQUIREMENTS 6 (a) The Virgin Islands Water Power Authority shall provide an annual progress report 7 to the Legislature of the Virgin Islands detailing the status of its modernization efforts, 8 including: 9 (1) technical assistance received; 10 (2) milestones achieved; 11 (3) challenges encountered; and 12 (4) expenditures related to modernization activities. 13 BILL SUMMARY 14 This bill mandates that the Virgin Islands Water and Power Authority seeks technical 15 assistance from the United States Department of Energy, the United States Army Corps of 16 Engineers, and relevant federal government agencies to modernize its electrical grid and water 17 system, improve reliability, eithance efficiency, and incorporate advanced technologies. 18 BR24-1220/July 22, 2024/LMW 19