ST. CROIX, VI – The Committee on Disaster Recovery, Infrastructure and Planning, led by Senator Marise C. James met in the Frits E. Lawaetz Legislative Conference Room. Lawmakers considered a measure that would enact the “Commercial Property Assessed Clean Energy (C-PACE) Act.” Lawmakers also received testimony and conduct oversight on the status of federal disaster recovery funding and the territorial capacity to support the ongoing recovery and infrastructure projects. The approved item on today’s agenda will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

Senators considered Bill No. 36-0248, An act amending Title 29, Virgin Islands Code by enacting the “Commercial Property Assessed Clean Energy (C-PACE) Act.” The measure was proposed by Senator Avery L. Lewis.

Kyle Fleming, Director of the Virgin Islands Energy Office stated that he appreciated the legislature’s interest in reducing energy costs and improving resilience, but voiced concern about the measure as it was written. Fleming stated that while C-PACE programs work well in the United States’ Mainland, the Virgin Islands financial and administrative realizes make the proposed lien structure risky. The bill places c-pace assessments senior to mortgages, second to property taxes, which Fleming states could restrict lending, increase borrowing costs and expose property owners to foreclosure risks. Furthermore, Fleming states that the territory’s once-per year property tax billing cycle creates a mismatch between annual lump sum payments and the incremental nature of energy savings, which would increase the likelihood of delinquency.

Fleming cautioned that integrating C-PACE into the existing property tax enforcement system would introduce uncertainty due to long standing challenges in assessment, billing and collections, including the absence of a statute of limitations on tax liabilities. Additionally, he stated that projected energy savings may not reliably offset repayment obligations because of utility billing inconsistencies and performance variability. Fleming pointed to other financing models better suited to the US Virgin Islands, such as on bill financing, revolving loan funds, green banks, and performance-based contracts. Fleming said that if the Legislature was to proceed, he urged modifications including mandatory lender consent, reconsideration of lien priority, flexible repayment mechanisms, protections for small businesses and independent validation of projected savings. Fleming urged the need to adapt financing models to the conditions of the Virgin Islands instead of adopting mainland models without adjustment.

Ludence Romney, Tax Assessor at the Office of the Lieutenant Governor did not support the proposed measure as currently written. The proposed measure would provide a funding mechanism that enables low-cost, long-term funding for energy efficiency, renewable energy and hurricane preparedness to privately owned commercial property owners. Additionally, the measure would provide a special, voluntary property assessment to property owners with the goal of capturing improvements to energy and water sustainability that can translate into borrowing capacity to the property owner.  The measure would also conjoin the intended responsibilities of the Virgin Islands Energy Office with the statutory responsibilities of the Office of the Lieutenant Governor, Real Property Tax Division.  Romney stated that the Real Property Tax Division is charged with administering the assessment of property taxes and is not suited to provide analysis of specialized property improvements to energy and water efficiency based on the guidance of the International Association of Assessment Officers (IAAO).  Additionally, Romney suggested that the VI Energy Office hire an independent appraiser to determine the specialized improvements/applications, perform the billing and collection process in-house or out-sources the billing and collection processes, and that the written notice of assessment and C-PACE lien should be recorded with the recorder of deeds office.  Furthermore, Romney stated that the proposed measure would increase the risks of jeopardy to the GVI Audit process and would raise the possibility of needing to explain juxtaposed responsibilities both as an impartial tax accessor/collector versus a role as a mortgage/borrower/collector and the final collection activity process.

Michael Sammartino, President of Alba Capital Corporation stated that C-PACE financing provides a solution for commercial borrowers in the US Virgin Islands who often struggle to meet the high equity requirements needed to large construction projects. Tradition lenders often require 20-40% cash equity, which can often delay projects for years or force local applicants to bring in large investors, which can often reduce local ownership.  Sammartino stated that by allowing energy efficient and resiliency improvements to be counted as equity, C-PACE would enable borrowers to contribute less upfront cash while still meeting lender requirements. C-PACE is most impactful for large projects, usually $20 Million and above and works with conventional lenders, USDA loans and other financing tools. Eligible improvements include energy efficient and hurricane resiliency measures. Sammartino’s testimony states that the proposed measure would strengthen the business community without requiring government or tax payer funding.

John Hebert, a St. Croix Business owner urged for passage of the measure.  Hebert, who is currently in the preconstruction phase of a 120 bed nursing facility on St. Croix, states that projects like his are very expensive to develop.  Traditional lenders require a substantial injection of owner capital or equity before committing to any level of financing. This financing is often difficult to obtain for many in the Virgin Islands business community, which results in unrealized social and economic benefit for the territory. Hebert stated that the CPACE program would be a game changing alternative in the development lending marketplace, which would afford developers the option to bridge the equity-funding gap. Additionally, Herbert stated that if the measure is approved, it would enable developers and business owners to take advantage of a broader borrowing environment.

Angel Torres Sr., a St. Croix Resident, urged the body to pass the measure. Torres stated that he and his wife have spent approximately 15 years working to build a family owned commercial business center on St. Croix. They owned the land, have permits, and have secured a commercial loan. However, the rising costs of construction have left them short of the equity needed to close, and no local funding sources have been able to help. Torres describes C-PACE as the solution needed to allow him to move his project forward.  Because C-PACE financing is treated as equity by lenders, it would allow him to retain full ownership and begin construction immediately. Torres says that the program would be beneficial not only for him, but other local entrepreneurs, creating new business opportunities and economic growth in the territory.

Lena Wiggs, Executive Director of the C-PACE Alliance delivered testimony in strong support of the measure.  Wiggs’ testimony stated that C-PACE is a proven, private sector financing tool that already operates in more than 30 states. C-PACE allows commercial property owners to finance energy efficiency, renewable energy, water conservation and resiliency improvements through long term fixed rate financing repaid via a voluntary property assessment. The structure eliminates the need for upfront capital and aligns repayment with the useful life of the improvements. Wiggs states that granted the territory’s high energy costs, vulnerability to severe weather, and need for infrastructure investment, C-PACE is well suited to support economic and climate resilience in the US Virgin Islands.

Wiggs reminded the body that C-PACE relies entirely on private capital, requiring mortgage-lender consent and structuring assessments as non-accelerating obligations, features that ensure compatibility with traditional lending and maintain lender confidence. Wiggs’ testimony notes that the program has driven construction activity, job creation, and improved building performance in other jurisdictions. She stated that the bill represents a major opportunity to expand access to private financing, strengthen local development, and enhance resilience without burdening public finances.

After further discussion of the proposed measure, Bill No. 36-0248 was voted upon favorably. It will be forwarded to the Committee on Rules and Judiciary for further consideration and action.

Lawmakers also received testimony and conducted oversight on the status of federal disaster recovery funding and the regarding the territory’s workforce capacity to support disaster recovery and infrastructure projects.

Adrienne Williams-Octalien, Director of the Office of Disaster Recovery informed the body that the territory’s recovery effort has expanded dramatically from an estimated $8 Billion to $24 Billion in obligated federal funding. According to Williams-Octalien, the recovery is in full throttle, with more than 1,160 projects completed. Major long-term construction is underway across hospitals, schools, power systems, housing and public infrastructure. A new Super Project Management Office is overseeing 38 large scale projects totalling $16.4 Billion. An additional 87 projects are in construction, with 33 more shovel ready. Significant progress includes construction at the Donna M. Christian Christiansen Health Center, the rebuild of the Juan F. Luis Hospital, new schools, undergrounding of power lines, as well as major horizontal infrastructure bundles on St. Croix and St. Thomas.  Williams-Octalien’s testimony also highlights major challenges with the recovery, such as rising construction costs, labor shortages, limited workforce housing, supply chain disruptions and delays costs by policy shifts. Inflation and global instability have increased project costs from 5% to 25%. However, ODR anticipates spending $643.5 Million in FY 2026, which is expected to generate $139 Million in Local tax revenue. ODR has remained focus on meeting FEMA’s 2035 deadline for fixed cost projects.

Gary Molloy, Commissioner of the Virgin Islands Department of Labor delivered testimony as it pertained to the workforce capacity of the territory. Molloy stated that the Virgin Islands workforce is stable, but is facing increasing demand due to large scale recovery and infrastructure projects. During the past five years, private sector employment has averaged at 24,656 workers with unemployment at 3.51%. The total labor force totals 41,975 people. Construction related recovery work continues to expand.  Approximately 15,600 job openings in construction have been registered in that same 5 year period. The Department’s workforce system, VIeWS, plays a major role by matching job seekers to employer needs.  As of April 23, 2026, there are 40 job vacancies from 12 employees actively recruiting candidates.  According to ViEWS, there are 172 active job seekers in the labor market, with 114 of them expressing interest or pursuing opportunities within the construction industry. To date, approximately 31% of disaster recovery projects have been completed, with most still underway.  Minimum wage has also risen to $12. The Department has embedded workforce development requirements directly into disaster recovery contracts, mandating local hiring, apprenticeships and draining investments to ensure that recovery dollars build long term capacity. Contractors must employ registered apprenticeships, submit workforce needs within ten days, and prioritize local residents.  Molloy also noted challenges, such as limited participation from construction firms at recent career fairs.

Kenneth Canty, President and Chief Executive Officer of AMC- Civil delivered testimony arguing that recovery in the US Virgin Islands is being slowed by the lack of safe, scalable housing for the influx of off island workers needed for construction. Canty proposes that the solution would be deploying accommodation barges, self-contained marine based housing platforms that avoid the zoning, community impact and land use challenges that are associated with large on shore “man camp” facilities. Each of the barges can house up to 288 workers and includes full living, dining, recreation, medical, laundry, and utility systems, which allow them to operate independently for 14-21 days.  Canty’s testimony identifies viable berthing locations in the territory, with final site validation requiring coordinated review of marine access, transportation logistics, port operations and safety considerations. Canty stated that the accommodation barges are a proven model, having been previously deployed in the Caspian See, Puerto Rico, and in Louisiana, post hurricane Ida.  Canty states that the accommodation barges can be a practical, near term tool to support workforce readiness and accelerate construction without displacing residents or overburdening local infrastructure.

PJ Platt, Project Manager at the Person Services Corporation explains that the agency’s disaster recovery projects are positions to avoid the housing and labor pressures that face larger, billion dollar programs. Because these projects will mobilize earlier in the recovery timeline and are relatively small, it expects to meet most workforce needs through existing contractors and local contractors. Any off island labor would be minimal and restricted to specific skill gaps. A modest workforce footprint would also mean that housing needs can be met through existing local options and short term rentals, with no need for dedicated worker housing.  Platt states that he did not anticipate major difficulties with securing labor or housing due to its early start and manageable project size. Additionally, Platt states that the agency is committed to prioritizing local hiring, partnering with local vendors, and relying on the local economy. This reduces logistical complexity, supports the local economy and positions the agency to move efficiently while larger projects later in the pipeline face peak competition for workers and accommodations.

Senators present at today’s committee hearing included Marise C. James, Milton E. Potter, Angel L. Bolques, Jr., Dwayne M. Degraff, Hubert L. Frederick, Avery L. Lewis, Clifford A. Joseph, Sr., and Kurt A. Vialet.

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