CDBG-DR-Funds-Electrical Power System Enhancements Program

Allocation: $500,000,000

This Program focuses on the development of an improved electrical grid for all residents of Puerto Rico, as approved by the Federal Emergency Management Agency (FEMA) FEMA Accelerated Award Strategy (FAASt).

ENERGY GRID REHABILITATION AND RECONSTRUCTION COST SHARE PROGRAM

With a budget of $500,000,000, the Energy Grid Rehabilitation and Reconstruction Cost Share (ER1) Program will benefit Puerto Rican communities by funding projects that enhance the electric system’s reliability, affordability, and resiliency. This Program focuses on the development of an improved electrical grid for all residents of Puerto Rico, as approved by the Federal Emergency Management Agency (FEMA) FEMA Accelerated Award Strategy (FAASt).

GUIDELINES

FileAction
Program Guideline (V1.0) Energy Grid Rehabilitation and Reconstruction Cost Share (ER1) - Published 10/26/2023Download

    This program aims to:

    Alleviate the financial burden related to the reconstruction efforts of the Puerto Rico Power Grid.
    Fund the rehabilitation of Puerto Rico’s electrical infrastructure to make it more resilient and durable over the long term.

    Alleviate the financial burden related to the reconstruction efforts of the Puerto Rico Power Grid and Fund the rehabilitation of Puerto Rico's electrical infrastructure to make it more resilient and durable over the long term.

    Through the matching of FEMA funds, the ER1 program will address the critical needs of the Puerto Rico Power Grid. At the same time, it will allow the Island to withstand and recover quickly from power system failures in the event of future natural disasters.

    Program Objective

    The objective of the ER1Program is to cover the non-federal match of FEMA’s Public Assistance (PA) allocation for the Puerto Rico Electric Power Authority’s (PREPA) Island wide FEMA Accelerated Awards Strategy (FAASt) Project. The Project has a 10% cost-share requirement, or approximately $1.5 billion, of which the ER1 program will provide a portion.

    Baseline Eligibility Requirements

    To receive CDBG-DR funding under ER1Program, all projects must meet the following baseline requirements:

    Must meet FEMA’s eligibility criteria.

    Meet a HUD National Objective, see the National Objective section.

    Be an eligible electrical system improvements activity.

    Address an eligible unmet need after accounting for all duplication of benefits.

    Be feasible and sustainable, with all other funding sources firmly committed, if applicable.

    Eligible Entities

    The entity must have been accepted into a federal agency disaster recovery program, and the lead federal agency must have determined that they have eligible projects to participate in this program. The eligible entity for the ER1 Program is PREPA and/or its authorized agents.