October 12, 2023
The U.S. Virgin Islands has taken a major leap towards fortifying its energy infrastructure, with the announcement from Governor Albert Bryan that the U.S. Department of Housing and Urban Development has greenlit the V.I. Housing Finance Authority’s Substantial Amendment.
The approval signals — but does not confirm — the release of $145 million in Community Development Block Grant mitigation (CDBG-MIT) funds designated for the V.I. Water and Power Authority’s purchase of Vitol infrastructure with the WAPA plants on St. Croix and St. Thomas. Release of the funds would require WAPA’s commitment to maintaining lower fuel prices, increasing fuel security, and addressing the vulnerability of the territory’s fuel storage to future storms and disasters.
VIHFA, as HUD’s grantee, is responsible for monitoring WAPA, ensuring that the utility publishes its utility reliability metrics; demonstrates the financial ability to maintain and operate the propane infrastructure throughout a 20-year uselife; maintains the territory’s access to multiple fuel sources; and ensures that WAPA is using its most reliable modern generators to facilitate increased power reliability.
On October 19, WAPA CEO Andrew Smith released the following statement:
I want to thank the Office of the Governor, the Virgin Islands Housing Finance Authority and the 35th Legislature for their support in this milestone towards the acquisition of the VITOL propane infrastructure. I would also like to thank our federal partners for their engagement and support.
I commend our team for their exceptional dedication and diligent efforts in reaching a significant phase in our strategic plan, bringing the Authority one step closer to financial stability.
This acquisition is monumental for the future of energy resilience in the territory. Acquiring the propane supply infrastructure will improve fuel resiliency because it will allow WAPA to maintain access to two fuels, propane and diesel, and double the amount of fuel storage in the territory. As part of WAPA’s mission of protecting our pristine environment, it will also ensure continued availability of WAPA’s most modern, clean, and efficient generation which operate on propane.
