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SUMMARY OF PUERTO RICO RENWABLE ENERGY LEGISLATIONS PDFPrintE-mail

On July 19, 2010, Governor Fortuño signed into law two measures:


1. Senate Bill 1519: defines Puerto Rico’s public policy regarding using renewable energy in order to diversify power generation and creates a Renewable Portfolio Standard
2. House Bill 2610: provides new incentives for investments in renewable energy, including the creation of a Green Energy Fund

Act #82 of July 19th, 2010 (SB 1519): Energy Diversification by means of Sustainable and Alternative Renewable Energy Act


• Recognizes many sources of renewable energy utilizing various technologies
• Creates a permanent Renewable Energy Commission as an oversight entity focused solely on the implementation of the RPS/
• Sets a hard target of 12% renewable energy production by 2015, and 15% by 2020 with a requirement for retail energy providers to establish a plan to reach 20% renewable energy production by 2035
• Establishes Renewable Energy Certificates (“RECs”) as legally-recognized assets that can be purchased, sold, traded, and transferred separately from electric power
• Mandates the implementation of a renewables registry, an electronic platform to manage the issuance, tracking, and trading of RECs

Act #83 of July 19th, 2010 (HB 2610): Green Energy Incentives Act

• Creates a Green Energy Fund (“GEF”) through which the government of Puerto Rico will co-invest $290 million in renewable energy projects over the next 10-years; initially funding of $20 million beginning July 1, 2011 (steps up to $40 million by FY 2016)
• Through the GEF, the PR Energy Affairs Administration will offer cash rebates of up to 60% on the cost of installing Tier 1 or small projects (0 – 100 kW) for residences and small businesses and up to 50% on the cost of Tier 2 projects (100kW – 1 MW) for commercial or industrial use
• The Tier 1 rebate program will be managed through a reservation process whereas the Tier 2 program will be managed through a quarterly competitive process(“reverse auction”)
• The GEF also provides flexibility for the government to establish new investment or incentive programs in the future
• For companies dedicated to the production of renewable energy on a commercial scale, the law also provides tax benefits in form of 1) significant partial exemptions from income taxes, property taxes, and municipal taxes; 2) super depreciation of buildings, structures, machinery, and equipment; and 3) eligibility for tax-credits related to the use of locally-manufactured products, job creation, and research and development.

 

Para obtener una copia de este Reglamento descargue aquí.

 Puerto Rico Green Energy Fund Regulation

GEF Reference Guides for Tier 1 and Tier 2 Program are now available

Tier 1 GEF Reference Guide FY2011-2012

Tier 2 GEF Reference Guide FY2011-2012