On January 8, 2021, Governor Pedro Rafael Pierluisi Urrutia signed Executive Order 2021-011 (“EO 2021-011” or the “Executive Order”) to create the Puerto Rico Reconstruction Council and repeal Executive Order EO-2017-004.

For your convenience, in this Alert, we will highlight the major Key Points.

PUBLIC POLICY STATEMENT (1st SECTION)

It is declared and established as public policy that any reconstruction project due to the damages caused by hurricanes Irma and Maria, as well as by recent earthquakes, will be considered as a critical project that must be attended to with agility and urgency, ensuring that the applicable environmental regulations are complied with.

CREATION OF THE RECONSTRUCTION COUNCIL (2nd SECTION)

The "Puerto Rico Reconstruction Council" is created to identify and recommend different critical reconstruction projects and their level of priority, as well as to evaluate the good management of resources and the fulfillment of goals - Likewise, the Rebuilding Council has the purpose of recommending and establishing strategies to expedite permitting procedures in compliance with state and federal agencies, always ensuring compliance with related environmental protection standards.

DUTY TO ISSUE CRITICAL PROJECT PRIORITY REPORT WITHIN 60 DAYS (3rd SECTION)

To identify and recommend the various critical reconstruction projects and their level of priority, the Reconstruction Council shall issue a report to the Governor's Office and the Secretary of the Interior setting out the project recommendations and order of priority.

COMPOSITION OF THE RECONSTRUCTION COUNCIL (4th SECTION) a) The Secretary of State; b) the Executive Director of the Central Bureau of Recovery and Reconstruction; c) the Secretary of the Department of Housing; d) the Executive Director of the Puerto Rico Infrastructure Financing Authority; e) the Assistant Secretary of Priority Projects; f) the Secretary of the Department of Transportation and Public Works; g) the Secretary of the Department of Economic Development and Commerce; h) the Secretary of the Department of Natural and Environmental Resources; i) the Secretary of the Department of Education; j) the Executive Director of the Electric Power Authority; k) the Executive Director of the Water and Sewerage Authority.

6th SECTION

The Rebuilding Council will oversee critical and urgent projects, utilizing best practices in project management - the Reconstruction Council will oversee critical and urgent projects, using best practices in project management. It will also facilitate, assist, and advise government entities in developing expedited procedures for critical projects.

7th SECTION

The Reconstruction Council shall submit periodic reports to the Governor with specific information on the development of critical projects, as well as recommendations for amendments to statutes and regulations that will expedite the processes related to their development.

Other EO 2020-011 Provisions:

• 5th SECTION

• 8th SECTION

• 9th SECTION

• REPEAL (10th SECTION)

• NO CREATION OF ENFORCEABLE RIGHTS (11th SECTION)

• SEPARABILITY (12th SECTION)

• PUBLICATION (13th SECTION)

• VALIDITY (14th SECTION)