Hurricane Fiona Recovery: Context and Challenges

Hurricane Fiona Recovery: Context and Challenges

INSIGHTi

Hurricane Fiona Recovery: Context and
Challenges
November 14, 2022
Fiona’s Landfall Amid Multiple Recovery Efforts
Hurricane Fiona made landfall on the southwestern coast of Puerto Rico on September 18, 2022, as a
Category 1 hurricane, unleashing 85mph winds and significant flooding. On September 21, President
Joseph R. Biden declared a major disaster under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act (the Stafford Act, P.L. 93-288, as amended), authorizing federal assistance for the
Commonwealth, local municipio governments, nonprofits, and individuals through the Federal
Emergency Management Agency (FEMA).
Prior to Hurricane Fiona, the government of Puerto Rico managed ongoing complicated recoveries from
three recent major disasters:
 Hurricanes Irma and María in 2017;
 a series of earthquakes in 2019-2020; and
 the COVID-19 pandemic.
These concurrent efforts complicate response and recovery. Policy disagreements among government
officials; a persistent fiscal crisis; and workforce shortfalls have delayed ongoing recovery efforts.
Recovery Delays and Consequences for Fiona Response
The 2017 hurricanes caused catastrophic damage and an official estimate of 2,975 fatalities across Puerto
Rico. The government of Puerto Rico estimated that recovery could cost over $130 billion, with $41
billion coming from FEMA, making it the most costly individual Stafford Act declaration to date.
FEMA and Puerto Rico’s Central Office of Recovery, Reconstruction, and Resiliency (COR3, the
administrator of Puerto Rico’s federal recovery funds) have demonstrated significant progress delivering
hurricane assistance. Much of the on-the-ground work of reconstruction, however, is yet to conclude, and
in many cases, yet to begin.
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Of ongoing interest to Congress are projects eligible for FEMA Public Assistance (PA), which provides
financial assistance for eligible costs of emergency response (“emergency work”) and the reconstruction
of public and nonprofit hurricane-damaged facilities (“permanent work”). Approximately $28.5 billion
has been obligated through PA—the most obligated for PA for a single declaration to date according to
publicly available FEMA data. As of mid-October 2022, COR3 has disbursed approximately $790 million
of these funds for permanent reconstruction. The Government Accountability Office (GAO), COR3, and
FEMA identified a number of factors delaying recovery, including:
 the use of modified procedures to complete PA projects;
 heightened financial controls;
 rising costs and supply chain disruptions;
 lack of initial capital needed to launch projects prior to receiving reimbursement through
PA;
 capacity shortfalls in government and private industry; and
 grant program complexity.
Remaining work includes securing FEMA’s approval for individual projects for four territory agencies
(including the Puerto Rico Electric Power Authority (PREPA)) with damaged worksites across the
territory. Stakeholders anticipate some of these projects will not be complete until 2031.
These ongoing recovery efforts may hinder Hurricane Fiona recovery in several ways. Federal, territory,
and municipio governments are managing four major disaster recoveries simultaneously—a significant
task that may further strain existing capacity. Additionally, Hurricane Fiona recovery projects may require
funding for up-front costs and/or local cost shares that may prove difficult to secure given concurrent
recovery efforts.
Federal Emergency Response Issues and Improvements
FEMA reported “significant challenges” with emergency response following Hurricane María in Puerto
Rico. The Department of Homeland Security (DHS) Office of Inspector General (OIG) found that FEMA
mismanaged the distribution of supplies such as food and water (among other issues). RAND foresaw
problems with moving materials around the territory during future disaster responses.
Since then, FEMA, the government of Puerto Rico, municipios, and nonprofits endeavored to make the
island more prepared for future incidents. FEMA increased the number of its commodity storage
warehouses in Puerto Rico from one to four. In September 2022, FEMA representative Anne Bink
testified that the agency had “nine times the water, ten times the meals, and three times the number of
generators on island” compared to the eve of Hurricane Maria.
Nonetheless, the aftermath of Hurricane Fiona highlighted difficulties in disaster response, for example:
 Hurricane Fiona particularly affected difficult-to-reach, mountainous terrain in the
territory’s center. Emergency managers reported that at least six of Puerto Rico’s 78
municipios were cut off due to damages to roads and bridges.
 Local journalists found that problems locating an estimated 40,000 individuals reliant on
electrically-powered medical machinery put them at increased risk.
 News media reported that the Puerto Rico Department of Corrections acknowledged
rationing water and basic sanitation issues at two correctional facilities because of water
and electricity shortages following Hurricane Fiona.

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Electric Power Restoration
Hurricane Fiona damaged Puerto Rico’s electric transmission and distribution system, which led to an
island-wide blackout. Power restoration took several weeks, and approximately 20% of customers
remained without electricity more than 10 days after the storm. By October 10, 2022, over 99% of
customers had their power restored.
In addition to addressing damage to the transmission and distribution system, temporary waivers were
approved to help ensure access to fuel for electricity generation. In response to challenges securing trucks
and drivers to provide fuel to power plants, on September 26, the U.S. Department of Transportation’s
Pipeline and Hazardous Materials Safety Administration issued an emergency waiver to allow drivers
with commercial licenses without a hazardous materials endorsement to haul fuel, which remains in effect
for 60 days from the date of issuance. On September 28, DHS approved a temporary waiver of the Jones
Act to address immediate diesel fuel needs for electricity generation. On October 16, DHS approved a
second temporary waiver of the Jones Act “to address the unique and urgent need for liquefied natural gas
(LNG) in Puerto Rico.” LNG fueled approximately 44% of Puerto Rico’s total electricity generation in
2021.
Before Hurricane Fiona, Puerto Rico’s electric power infrastructure experienced more frequent and longer
outages than the U.S. average. This is in part a result of underinvestment, PREPA’s perceived deficient
maintenance practices, and ongoing recovery from the 2017 hurricanes and 2019-2020 earthquakes. In
June 2021, LUMA Energy consortium began managing and operating PREPA’s transmission and
distribution assets. Widespread power outages in 2021 and additional outages following Hurricane Fiona
have raised concerns about the condition of PREPA and LUMA’s performance running the power grid.

Author Information

Erica A. Lee
Adam G. Levin
Analyst in Emergency Management and Disaster
Analyst in Economic Development Policy
Recovery

Corrie E. Clark

Specialist in Energy Policy

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