H.R. 5432: Puerto Rico Energy Oversight and Accountability Act

This bill, titled the Puerto Rico Energy Oversight and Accountability Act, mandates a comprehensive examination of the operations of two energy companies in Puerto Rico: LUMA Energy and Genera PR. Here are the main points of what the bill seeks to accomplish:

Study Requirements

• The Comptroller General of the United States must conduct a detailed study that will look into the period from June 1, 2021, to the date the report is submitted.
• This study must cover several specific areas, including:
  • How LUMA Energy and Genera PR's managerial and operational decisions have influenced project execution and coordination with federal and local authorities.
  • The local government policies and actions that impact federal disaster relief and efforts to enhance grid resilience.
  • The challenges that hinder effective federal funding, oversight, and implementation of energy projects in Puerto Rico.

Recommendations for Improvement

Alongside the findings of the study, the Comptroller General is expected to provide actionable recommendations that aim to:

• Improve federal response and resilience in the energy sector by:
  • Strengthening oversight of LUMA Energy and Genera PR.
  • Enhancing coordination among federal, territorial, and local authorities.
  • Ensuring transparency and efficient use of federal funds.
• Address the issues surrounding project execution by:
  • Reducing delays in project execution.
  • Establishing clearer accountability in contracting and operations.
• Propose measures for long-term planning and coordination to modernize and strengthen the resilience of Puerto Rico's energy grid.

Reporting Timeline

The Comptroller General is required to submit the findings of this study to Congress not later than one year after the bill's enactment, and then again one year later.

Relevant Companies

• LUMN - LUMA Energy is likely to be directly impacted because the bill focuses on evaluating its operational effectiveness and the oversight of its management decisions.
• GNRR - Genera PR will also be significantly affected due to the bill's examination of its role and impact on energy efficiency and coordination with federal authorities.