The law’s author, Rep. Heinz S. Hofschneider, R-Saipan, inrtroduced H.B. 16-204 on Friday, and described its drafting as a joint effort with CUC.
CUC and the Fitial administration opposed the current privatization law, P.L. 16-17, which was enacted after lawmakers overrode the governor’s veto.
According to the bill, it aims to “provide greater clarity and create a greater probability of obtaining reliable power at a reasonable rate” for the people of the CNMI.
The bill removes the $250 million price tag set by P.L. 16-17, but retains the requirement on the development of renewable energy generation facilities in the CNMI.
H.B. 16-204 also allows non-U.S. contractors to join the bidding process, provided they show proof of five years compliance with standards that are equivalent or stricter than U.E. Environmental Protection Agency regulations.
The measure likewise defines “United States certified contractor…as a legal entity that transacts or has transacted business in the United States to assist utilities, utility commissions or other public agencies in the United States in procuring and evaluating private sector power generation services and facilities. United States refers to the 50 states and the commonwealth and territories of the United States.”
According to the bill, current law might unintentionally exclude contractors with international permits who have a history of compliance with emission standards that are on par with EPA regulations although they have never been subject to those regulations.
