Senate committee hears ATI and Planning Board on bill to spur trade with U.S. Virgin Islands
February 13, 2024 | Senate, Committees, Legislative, Puerto Rico, International
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The Senate commission on strategic projects and energy heard technical testimony on Proyecto del Senado 1201 and asked two agencies to supply follow-up materials within five business days.
Iliana Reyes Lora, legal adviser and interim deputy director of the Autoridad de Transporte Integrado (ATI), told the commission that “el artículo trece de este proyecto dispone en su inciso b, que se autoriza al departamento de transportación y obras públicas a preparar un estudio de viabilidad para el establecimiento de una ruta de carga de transporte marítimo y de pasajeros entre Culebras y San Thomas.” She said ATI supports a feasibility study and listed elements the study should evaluate, including terminal modifications to meet federal rules, vessel availability and speed, crew availability, tariff design, and fiscal implications if the government were to operate or subsidize the route.
ATI representatives said some vessels in the Commonwealth inventory are currently in service while others are under maintenance and that a longer route such as the one proposed would likely require larger, faster vessels. José Luis Rodríguez Macías, ATI manager for performance and quality and environmental affairs, said existing short-route ferries are in operation but “para una ruta más larga ... se necesitaría una embarcación de mayor capacidad” and that the study should determine specific vessel needs and safety plans.
The Planning Board of Puerto Rico, represented by Aida Silva, chief legal counsel, and Alejandro Díaz, director of economic and social planning programs, presented fiscal and planning context. Silva summarized the measure’s main features: redirecting certain tax benefits toward municipal land-use plans for Culebra and Vieques; commissioning three viability studies; evaluating use of an industrial promotion company warehouse as a regional storage and distribution hub; considering duty-free retail space in Vieques; and establishing three special funds financed by a proposed allocation of “quince por ciento” of certain lodging-related excise taxes.
Silva urged that viability studies identify activities with clear multiplier effects so any revenue lost to exemptions would be offset by local economic gains. She also highlighted data cited to the commission: for FY2023, exports from Puerto Rico to the U.S. Virgin Islands totaled about 413.4 million, an increase of roughly 91.6 million over the prior year, and the Planning Board noted most passenger movement between jurisdictions has been by air and that Vieques and Culebra airports accounted for only a few hundred passenger arrivals or departures.
On legal and procedural grounds, the Planning Board cautioned the commission that the bill’s language as drafted risks “invertir el rol del municipio,” by assigning the central agency a leading role in modifying municipal zoning and plan content that, under the municipal code, is traditionally drafted and revised by the municipality with coordination and formal procedures. Silva urged adherence to the municipal-code process for plan revisions, including public notice, unified proposal publication and opportunities for citizen participation.
During questioning, the presiding officer pressed ATI on operational details and requested that ATI deliver an updated inventory of Commonwealth-owned vessels, maintenance statuses, any existing viability studies (including the 2023 Ceiba study ATI mentioned) and records of federal coordination (Coast Guard, FTA/TSA or other agencies) within five business days; ATI agreed to provide the materials. The commission took a brief recess to allow the Planning Board to prepare its presentation and closed after the board’s remarks.
No formal motion or vote was recorded during the session. The commission set a procedural follow-up: agencies will submit the requested documents and maps (zoning classification, administrative orders and related materials) to support the viability-study design and the commission’s further review of Proyecto del Senado 1201.
Iliana Reyes Lora, legal adviser and interim deputy director of the Autoridad de Transporte Integrado (ATI), told the commission that “el artículo trece de este proyecto dispone en su inciso b, que se autoriza al departamento de transportación y obras públicas a preparar un estudio de viabilidad para el establecimiento de una ruta de carga de transporte marítimo y de pasajeros entre Culebras y San Thomas.” She said ATI supports a feasibility study and listed elements the study should evaluate, including terminal modifications to meet federal rules, vessel availability and speed, crew availability, tariff design, and fiscal implications if the government were to operate or subsidize the route.
ATI representatives said some vessels in the Commonwealth inventory are currently in service while others are under maintenance and that a longer route such as the one proposed would likely require larger, faster vessels. José Luis Rodríguez Macías, ATI manager for performance and quality and environmental affairs, said existing short-route ferries are in operation but “para una ruta más larga ... se necesitaría una embarcación de mayor capacidad” and that the study should determine specific vessel needs and safety plans.
The Planning Board of Puerto Rico, represented by Aida Silva, chief legal counsel, and Alejandro Díaz, director of economic and social planning programs, presented fiscal and planning context. Silva summarized the measure’s main features: redirecting certain tax benefits toward municipal land-use plans for Culebra and Vieques; commissioning three viability studies; evaluating use of an industrial promotion company warehouse as a regional storage and distribution hub; considering duty-free retail space in Vieques; and establishing three special funds financed by a proposed allocation of “quince por ciento” of certain lodging-related excise taxes.
Silva urged that viability studies identify activities with clear multiplier effects so any revenue lost to exemptions would be offset by local economic gains. She also highlighted data cited to the commission: for FY2023, exports from Puerto Rico to the U.S. Virgin Islands totaled about 413.4 million, an increase of roughly 91.6 million over the prior year, and the Planning Board noted most passenger movement between jurisdictions has been by air and that Vieques and Culebra airports accounted for only a few hundred passenger arrivals or departures.
On legal and procedural grounds, the Planning Board cautioned the commission that the bill’s language as drafted risks “invertir el rol del municipio,” by assigning the central agency a leading role in modifying municipal zoning and plan content that, under the municipal code, is traditionally drafted and revised by the municipality with coordination and formal procedures. Silva urged adherence to the municipal-code process for plan revisions, including public notice, unified proposal publication and opportunities for citizen participation.
During questioning, the presiding officer pressed ATI on operational details and requested that ATI deliver an updated inventory of Commonwealth-owned vessels, maintenance statuses, any existing viability studies (including the 2023 Ceiba study ATI mentioned) and records of federal coordination (Coast Guard, FTA/TSA or other agencies) within five business days; ATI agreed to provide the materials. The commission took a brief recess to allow the Planning Board to prepare its presentation and closed after the board’s remarks.
No formal motion or vote was recorded during the session. The commission set a procedural follow-up: agencies will submit the requested documents and maps (zoning classification, administrative orders and related materials) to support the viability-study design and the commission’s further review of Proyecto del Senado 1201.
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