PRELIMINARY DRAFT FOR PUBLIC COMMENT, JULY 9, 2018 Transformation An Economic and Innovation and Disaster in the Wake Recovery Plan of Devastation for Puerto Rico PRELIMINARY DRAFT – JULY 2, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO PRELIMINARY DRAFT—JULY 9, 2018 LEFT | MARIA TREE SEEDLINGS CULTIVATED FOR PLANTING ACROSS THE ISLAND, MARCH 2018 BELOW | CRUISE ABOVE | SHIPS RETURNED, STUDENTS’ FIRST BRINGING DAY OF SCHOOL THOUSANDS FOLLOWING OF TOURISTS HURRICANE A WEEK, MARIA, OCTOBER DECEMBER 2017 2017 RIGHT | OVER 15,000 POLES DELIVERED TO RESTORE ELECTRICY TO THE ISLAND, JANUARLY 2018 PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO CONTENTS Foreword From the Governor ............................................................................ii Executive Summary ..................................................................................................iv 1 Introduction ........................................................................................................1 2 Puerto Rico: An Island Undergoing Transformation .....................14 3 Puerto Rico’s Challenge ................................................................................22 4 Puerto Rico’s Opportunity ...........................................................................44 5 Start with a Strong Foundation ...............................................................52 6 Build Resilient Communities, Modernize Infrastructure and Restore the Natural Environment .................................................62 7 Focus on the Future ......................................................................................114 8 Estimated Costs and Funding for Puerto Rico’s Recovery .......128 9 A Commitment to Transparency .............................................................142 10 Plan in Action ......................................................................................................150 11 Conclusion ...........................................................................................................158 12 Detailed Actions ................................................................................................160 13 Detailed Look at How the Plan Was Developed..............................371 14 Acknowledgments .........................................................................................385 15 Abbreviations .....................................................................................................387 | I | PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO | II | PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO FOREWORD From the Governor The final draft of the Governor’s foreword is pending and will be included in the final recovery plan. Ricardo Rosselló Nevares, Governor | III | PRELIMINARY DRAFT—JULY 9, 2018 Image via HSOAC | IV | PRELIMINARY DRAFT—JULY 9, 2018 EXECUTIVE SUMMARY n September of 2017, Puerto Rico suffered catastrophic damage as Hurricane Irma passed just north of San Juan. Hurricane Maria made a direct hit on the Island as a massive category 4 hurricane two weeks later. The hurricanes’ Idevastating effects on people’s health and safety cannot be overstated. Damage to critical infrastructure resulted in cascading failures of lifeline systems of energy, transportation, communications, and water supply and wastewater treatment. With the events occurring at the end of a very active hurricane season, federal resources for disaster response were stretched. Moreover, aid from other states was not easily available due to a lack of mutual compacts and geographical separation across a vast ocean. Because the resources available for response were inadequate for the scale of the disaster, the failure of the lifeline systems meant that emergency services were severely compromised and residents lacked electricity, food, and water for a prolonged period. And with roads impassable, residents had limited access to medical care. After the hurricanes, people lost their jobs, schools were closed, government services and private enterprise could no longer operate effectively, landslides caused flooding hazards, and wastewater polluted marine environments. Older adults, children, individuals with disabilities or chronic illnesses, and women were all disproportionately affected by this disaster. Catastrophic hurricanes and the resulting disasters are not unique to Puerto Rico. Coastal communities affected by Hurricane Katrina in 2005 and Hurricane Sandy in 2012 also suffered widespread damage, severe interruption of essential services, and deep economic losses. However, Puerto Rico has experienced a much longer period of post-disaster failure, and | V | PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO the Island now faces a lengthier recovery than other regions of the United States that have faced the aftermath of similar disasters. Critically Puerto Rico has been grappling with an economic crisis spanning more than a decade; structural demographic, health, social, and infrastructure stresses; and a history of limited government transparency—these preexisting conditions exacerbated the impact of the hurricanes. Puerto Rico’s population is aging, and an increasing number of young people and working-age adults have been migrating away from the Island. Poverty rates are higher than in any U.S. state. Import prices in Puerto Rico, as well as the prices of the goods and services produced from these imports, are high. A lack Kenneth Wilsey/FEMA of clarity about ownership of and responsibility for various infrastructure assets and public buildings complicates repair and prevents adequate maintenance. Puerto Rico is also somewhat The Government unique in its relationship with the U.S. federal government: Although Puerto Ricans are U.S. citizens, they cannot vote of Puerto Rico in U.S. presidential elections, have only a nonvoting Resident views the Commissioner in the U.S. House of Representatives, and have no representation in the U.S. Senate. recovery effort The Government of Puerto Rico views the recovery effort as an as an opportunity opportunity to transform the Island by implementing solutions to transform that are cost effective and forward looking, harness innovative thinking and best practices, and revitalize economic growth. The the Island by Governor of Puerto Rico is sharing this economic and disaster implementing recovery plan consistent with his vision: solutions that To build the new Puerto Rico to meet the current and future are cost effective needs of the people through sustainable economic development and social transformation; transparent and innovative and forward approaches to governance; resilient modern, and state-of- looking, harness the-art infrastructure; and a safe, educated, healthy, and sustainable society. innovative To achieve this ambitious vision, this recovery plan is focused on thinking and four primary goals: best practices, 1. Ground the new Puerto Rico in the needs of its people by and revitalize promoting a society that is educated, healthy, and sustainable. economic growth. 2. Enhance Puerto Rico’s ability to withstand and recover from future disasters through individual, business, and community preparedness; redundant systems; continuity of operations; and improved codes and standards. 3. Ensure rebuilding and restoration efforts promote sustainable economic growth and social transformation, and contribute to a more vibrant and competitive economy that can provide | VI | PRELIMINARY DRAFT—JULY 9, 2018 TRANSFORMATION AND INNOVATION IN THE WAKE OF DEVASTATION: AN ECONOMIC AND DISASTER RECOVERY PLAN FOR PUERTO RICO opportunities for job growth; and promote personal advancement that produces benefits for Puerto Rico’s residents for generations to come. 4. Strengthen Puerto Rico’s critical infrastructure by rethinking its design and reconstruction to be more modern, sustainable, and resilient than before the hurricanes, and to effectively support people, industry, and the economy. The Government of Puerto Rico—in particular the Central Recovery and Reconstruction Office (CRRO), established by executive order in 2017 and now also known as the Central Office of Recovery, Reconstruction, and Resilience (COR3)—was supported by Federal Emergency Management Agency (FEMA) and the Homeland Security Operational Analysis Center (HSOAC—a federally funded research and development center [FFRDC] operated by the RAND Corporation under contract with the Department of Homeland Security) to develop this recovery plan in response to the “Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018” (Public Law No. 115-123). The effort involved extensive outreach to and collaboration with a broad group of federal agencies, state-level and municipal government agencies within Puerto Rico, private-sector and nonprofit entities, and those most affected by the hurricanes—the people of Puerto Rico. The plan was developed over the course of three dynamic and—given