A coalition of 28 organisations, including solar and storage companies have filed a Friend of the Court brief (Amicus) against the Financial Oversight and Management Board for Puerto Rico (FOMB).
The coalition argues that the FOMB’s legal attacks against Act 10 – which extends Puerto Rico’s net metering programme until 2030 – threatens the island’s solar PV growth and resilience. The FOMB filed a complaint against Puerto Rico’s governor, Pedro Pierluisi, in the US District Court for the District of Puerto Rico to nullify Act 10, in July this year.
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In its argument against Act 10, the FOMB said that it undermined the autonomy of the Energy Bureau, Puerto Rico’s energy system regulator, and that it does not seek to end or impose changes to the net metering programme in Puerto Rico.
Act 10 was signed into law at the beginning of the year and passed unanimously in both the Puerto Rican House and Senate. However, a law regarding net metering was originally created in 2007 and has been a boon for the growth of residential solar in the island. As covered by PV Tech Premium last year, Puerto Rico’s success story in the residential market has been praised, especially in the buildout of a virtual power plant that could be replicated across the US.
The coalition’s Amicus Brief supports defensive positions taken in court by Governor Pierluisi, and by the President of the Puerto Rico Senate, which has asked for the lawsuit to be dismissed on the grounds that FOMB lacks the authority to interfere with the implementation of Act 10.
“10% of Puerto Rico’s houses now have solar with backup battery power thanks to the policy of net metering,” explained PJ Wilson, Executive Director of the Solar and Energy Storage Association of Puerto Rico (SESA). “We’re fighting for the ability of the other 90% to be able to as well.”
FOMB is a temporary oversight agency created by the US Congress in 2016, due to the island’s financial collapse at the time. The primary role of FOMB was to settle the island’s debt, with the entity to be dissolved once all the bankruptcies in Puerto Rico are settled. The only one remaining is from the island’s only electric utility, the Puerto Rico Electric Power Authority (PREPA).
Among the entities who have signed the Amicus are US trade association the Solar Energy Industries Association (SEIA), with its president and CEO, Abby Hopper, commenting that “smart policies like net metering truly anchor the broad adoption of solar, and in Puerto Rico, that translates into reliable and resilient energy”.
“The recent challenge to net metering in Puerto Rico is problematic because it very simply makes it more difficult for residents to produce their own power and save money on their monthly bills. As Puerto Rico works towards their goal of reaching 100% renewable energy while building out a resilient and reliable energy system, it is critical that we fight to protect net metering on the island,” added Hopper.
Among the companies included in the Amicus Brief are SEIA, as mentioned earlier, Sunnova, SolarEdge, IREC and SMA, among others.
