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 allow small scale distilleries and breweries in certain zones upon public notice and approval by the Department of Planning and Natural Resources.

Lawmakers considered Bill No. 36-0211, An act amending title 29 Virgin Islands Code, chapter 3, subchapter I., to allow small-scale distilleries and breweries in certain zones upon public notice and approval by the Department of Planning and Natural Resources. The measure was sponsored by Senator Milton E. Potter by request of the Governor.

Jean Pierre Oriol, Commissioner of the Department of Planning and Natural Resources delivered testimony supporting the proposed measure. Oriol stated that the measure aligned with the Department’s vision for updating the Zoning code, specifically related to agricultural zones and their permitted uses to encourage old fashioned farming and to promote diversification of farm related activities. According to testimony, the measure seeks to add clarity by defining terms like brewery, distillery, microbrewery, and micro distillery. Additionally, the measure would also redefine and replace the term “agriculture processing plant” with “agricultural processing”.

The bill would amend Section 228 by replacing “Alcohol and Alcoholic beverages, Manufacture” with Distillery/Brewery in the I-1, I-2,, and W-2 Zones, which would permit the use of “Microbreweries and Micro distilleries” within the A-1, A-2, R-1, and R-2 zones, subject to applied rules. DPNR has emphasized that any allowance of micro distilleries or microbreweries within agricultural or residential adjacent zones must be subject to environmental performance standards. DPNR is currently revising portions of the Zoning code, along with the Table of Permitted Uses, which would propose an expansion of the zones that agricultural activities would be allowed to occur in. All zoning districts in the United States Virgin Islands are mixed use.

Alice Charles, member of People Protecting Places, and a resident of Frederiksted, St. Croix strongly opposed the proposed measure. In testimony, Charles stated that the A-1 and A-2 zones were created to protect the limited farmland in the Virgin Islands and stated that this would shift land, water and infrastructure away from food production, stating that the zones should be used primarily to grow food. Charles voiced concern that distilleries would potentially destroy viable soils and aquifers. According to Charles, water and land damage has already occurred due to previous experiences with rum fungus that feeds on ethanol from rum storage facilities. The fungus already coated homes, cars, trees, and signs near existing rum operations, which forced rum storage barrels to be shipped away for aging. Charles states that this would not be economically feasible for small distillers.

Additionally, vinasse, the wastewater from rum distilleries, can harm soils, guts, groundwater and coastal waters if not properly treated. Larger producers like Diageo, Captain Morgan and Cruzan Rum were required to implement treatment facilities to dispose of this byproduct. Charles says that some treat the wastewater, while other ship it off island for disposal. Recently, vinasse was seen flowing from the vicinity of Prosperity Farm on October 10, 2025. It was later tested by DPNR, and found to have extremely high levels of bacterial contamination. A “Public Advisory: Water Quality Alert and Prosperity Beach” was then issued on October 22, 2025, informing the public that the beach was unsafe to swim at.  Charles also stated that the bill is in direct violation of the recently adopted Comprehensive Land and Water Use Plan, which identified “no more spot zoning”, stating that the bill does the opposite of what the plan calls for. Charles questioned the legitimacy of the bill, stating that the push for the change was from outside corporate interest and wealthy land owners. Furthermore, she stated that the change would allow for more noise, and trucks in residential neighborhoods, risking lowering property values on island.

Kevin Rames, a St. Croix Attorney voiced support of the measure.  Rhames states that the addition of craft distillery tours could potentially increase per visitor spending, which could in turn generate millions of dollars for the territory.  Rames stated that if three to five small distilleries were stablished in the territory,  each attracting about 15,000 to 20,000 visitors annually, the visitor count could approach 75,000 to 100,000 specialty tourism visits per year. Rhames stated that this could result in $5-15 Million annually in direct visitor spending at spending estimates of $75-$150 per visitor.   

After further discussion of the matter, the measure was held in Committee at the call of the Chair.

Senators present at today’s committee hearing included Marise C. James, Milton E. Potter, Angel L. Bolques, Jr., Marvin A. Blyden, Dwayne M. Degraff, Hubert L. Frederick, Franklin D. Johnson, Kenneth L. Gittens, Carla J. Joseph, Clifford A. Joseph, Sr., and Kurt A. Vialet.

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