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FLOOR 12/18/2024-SPECIAL ORDERED TO THE FLOOR BILL NO. 35-0426 Thirty-Fifth Legislature of the Virgin Islands December 18, 2024 An Act authorizing the Virgin Islands Water and Power Authority to sell electricity to any beneficiary in the Virgin Islands South Shore Trade Zone without regulation by the Public Services Commission of the Virgin Islands PROPOSED BY: Senator Novelle E. Francis, Jr., by Request of the Governor Co-sponsor: Diane T. Capehart WHEREAS, the district of St. Croix is economically distressed; 1 WHEREAS, the severe deterioration of the district’s tax base demands a coordinated 2 effort to promote economic revitalization; 3 WHEREAS, it is the responsibility of the Government of the Virgin Islands to provide 4 a framework to encourage private investment, remove or abate barriers to investment, and 5 provide mechanisms for the coordination and cooperation of private and public agencies in 6 restoring the economic viability and prosperity to the St. Croix District; 7 WHEREAS, the Virgin Islands South Shore Trade Zone (“trade zone”) was established 8 on October 26, 2020, and is codified in title 29 Virgin Islands Code, chapter 19, subchapter V; 9 WHEREAS, the Legislature created the trade zone to designate an area that eliminates 10 traditional barriers, such as tariffs, minimizes bureaucratic regulations, develops economic 11 opportunities, and promotes commercial trade and investment between local and international 12 markets; 13 2 WHEREAS, the south shore ports of entry into St. Croix are attractive for transshipment 1 and create opportunities for the development of light manufacturing and other commercial 2 industries; 3 WHEREAS, the current cost of energy is a major obstacle for prospective beneficiaries 4 irrespective of the very generous benefits offered by the trade zone; and 5 WHEREAS, beneficiaries of the trade zone are permitted to competitively generate, sell, 6 trade, or otherwise distribute electrical power and water within the trade zone; and 7 WHEREAS, WAPA seeks to compete on equal footing with other energy providers in 8 the trade zone by obtaining the authority to sell electricity directly to trade zone beneficiaries, 9 thereby creating additional sources of energy and redundancy inside the trade zone; and 10 WHEREAS, permitting WAPA to participate in the trade zone’s energy market would 11 foster healthy competition between the beneficiaries, ensuring reliable and cost-effective 12 energy solutions for trade zone beneficiaries; Now, Therefore, 13 Be it enacted by the Legislature of the Virgin Islands: 14 SECTION 1. Title 29 Virgin Islands Code, chapter 19, subchapter V, section 1018f is 15 amended by striking “any other law to the contrary,” and inserting “title 30 chapter 1, Virgin 16 Islands Code,” and inserting “, including The Virgin Islands Water and Power Authority,” after 17 the first instance of “Beneficiaries”. 18 BILL SUMMARY 19 The bill allows WAPA to sell electricity to beneficiaries within the Virgin Islands South 20 Shore Trade Zone without regulation by the Public Services Commission of the Virgin Islands. 21 BR24-1405/December 2, 2024/CBM/Revised 12/10/24/Revised 12/13/2024 22 G35-099 23