Press Releases

For Immediate Release                             Contact: Tionee Scotland

July 16, 2024                                                    202-808-6129

This week, the U.S. Department of Housing and Urban Development (HUD) announced the release of $100 million in Community Development Block Grant – Mitigation (CDBG-MIT) funds to the U.S. Virgin Islands for the purchase of fuel storage infrastructure on St. Thomas and St. Croix from VITOL.

“While I previously expressed my reservations about the use of such precious funds to make the purchase of VITOL infrastructure, which then settles the Government of the Virgin Islands agreement with VITOL –I am, as always, grateful for the relationship the Virgin Islands has with the U.S. Department of Housing and Urban Development (HUD). The Virgin Islands Water and Power Authority’s (WAPA) agreement and relationship with VITOL was an unbalanced, problematic one, with VITOL’s continued efforts to extract what appear to be usury rates on a past debt.

“Community Development Block Grant Disaster Recovery (CDBG-DR) funds are designated to facilitate long-term recovery, and in the case of the Virgin Islands, included targeted funding to mitigate future disaster risks through CBDG-MIT. Specifically, this funding is intended to increase resilience to disasters and reduce or eliminate the long-term risk of loss of life, injury, damage to and loss of property, and suffering and hardship, by lessening the impact of future disasters.  Specifically, projects related to housing and roads are great uses of these funds.

“Nonetheless, utilizing the CDBG-DR funding to pay off the VITOL debt was Governor Bryan’s decision, and it is my hope that with this purchase, our relationship with VITOL will come to an end and the Virgin Islands will find new vendors for propane fuel transport.

“The people of the Virgin Islands deserve affordable, reliable power and I am hopeful that this purchase will help strengthen the resilience of our territory’s utility and an increased hardening of our energy infrastructure.

“My office continues to stand ready to serve as a federal partner and provide support to Governor Bryan, the Legislature of the Virgin Islands and the Virgin Islands Energy Office in resolving the crisis at WAPA.”

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