President Trump’s Energy Dominance Plan Will Make Puerto Rico Great Again

Earlier this month, the Trump Administration terminated five members of the Financial Oversight and Management Board (FOMB) for Puerto Rico. Congress created the Board in 2016 to facilitate the restructuring of the island’s mountain of debt and to institute desperately needed financial reforms by the Commonwealth Government.

As a former member of the FOMB who was appointed by President Trump in his first Administration, I applaud the President’s actions to rescue Puerto Rico from a Board that has presided over the disintegration of the island’s electrical grid and that has failed in its most basic duties to the people of Puerto Rico.

When Congress created the Board in 2016, it was explicit about its intent that the Board prioritize Puerto Rico’s energy infrastructure. But when it comes to the FOMB’s record on energy, the facts speak for themselves. Over the past year, Puerto Rico has been plagued by frequent power outages and island-wide blackouts. Rather than address this unfolding disaster, the FOMB has kept Puerto Rico’s power utility, PREPA, mired in bankruptcy and has obstructed efforts to reach a consensual settlement with creditors.

In addition, billions of dollars authorized by President Trump in his first Administration to rebuild Puerto Rico’s electrical grid after hurricane Maria remain unspent due the FOMB’s failure to work with the local government and the Biden Administration’s insistence on green energy. Shockingly, over the course of its nearly decade-long existence, the FOMB has spent $2 billion of taxpayer money on lawyers and consultants who are financially incentivized to perpetuate PREPA’s bankruptcy. (RELATED: Trump Admin Erases Biden-Era Assault On US Energy)

To be clear, keeping PREPA in bankruptcy is an impediment to the modernization of Puerto Rico’s electrical grid and power system, a fundamental requirement for economic growth and expansion. President Trump’s plan for U.S. energy dominance is the embodiment of the axiomatic relationship between energy and economic growth. The FOMB’s leadership failed to understand this, and now thankfully it is gone.

I’ve written previously about President Trump’s strong leadership when it comes to Puerto Rico. Following the devastation caused by hurricane Maria in 2017, the Trump Administration swung into action. The response was swift, historic and unrelenting, continuing all the way through his first term. The Biden Administration and the FOMB’s leadership wasted four years spent mainly on promoting green energy boondoggles. By firing the Board, President Trump has taken the first steps toward making Puerto Rico great again. His plan for U.S. energy dominance is fundamental to this. Here are five potential next steps I would recommend:

• End PREPA’s bankruptcy. This can be done swiftly by reaching a consensual deal with creditors who have reached numerous agreements in the past only to have the FOMB walk away from the negotiating table. A restructuring which treats all parties fairly and does not place an undue burden on ratepayers can be obtained through a combination of sources, including a contingent value instrument (CVI) and Commonwealth funds.

• Puerto Rico’s electrical grid must be privatized and rebuilt by qualified operators. The world class energy infrastructure we build for Puerto Rico should be powered by American natural gas and nuclear (SMRs), not by green hype or solar panels which will be blown away in the next hurricane. The President’s Energy Dominance Council and the Department of Energy should lead this process, working with a potentially reconstituted FOMB.

• Bring back pharmaceutical manufacturing to Puerto Rico. President Trump’s leadership to re-balance global trade and to re-shore U.S. manufacturing is key to this, along with creating a reliable energy infrastructure.

• Permit exploration and drilling for offshore oil and natural gas, with future royalties from production to be shared by the federal government and Puerto Rico.

• Terminate the FOMB following a successful restructuring of PREPA, which is the only restructuring left to complete. Congress never intended the FOMB to be permanent, and billions of taxpayer funds are being wasted. Puerto Rico should be governed by its elected leaders.

I served on the FOMB for almost three years after being appointed by President Trump in 2020. I was honored to do so, and during my tenure I heard consistently from local politicians from both parties who appreciated President Trump’s strong leadership. During my brief tenure on the Board one thing became clear to me – No President has done more for Puerto Rico than Donald Trump. And thanks to his leadership, Puerto Rico will be great again.

Justin Peterson served as a Member of Puerto Rico’s Financial Oversight Board from 2020-2013.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller.