Energy Office Defends $1.56 million FY2026 Request as Federal Grants Drive Programs

Kyle Fleming, director of the Virgin Islands Energy Office, told the Legislature’s Committee on Budget, Appropriations and Finance on June 24 that the office needs a $1,556,951 general‑fund appropriation for fiscal year 2026 to support personnel and core operations while the agency administers large federal grants.

Fleming said the general‑fund request is intended mainly to cover personnel services — $875,609, or roughly 56% of the requested allotment — and fringe benefits of $402,695. “Embedding resilience, energy efficiency, and data‑proven solutions into government policy,” Fleming said, “while providing tangible service to the people of the Virgin Islands through our programming are the core tenets that we at the Energy Office strive to achieve.”

Why it matters: Fleming told the committee that federal funds are where the office’s largest programs live — solar financing pilots, the federal Solar for All grant ($62 million from EPA), and a $10 million HUD Community Electrical Innovation program aimed at low‑ and moderate‑income and vulnerable populations. He said the office currently manages more than $140 million in federal awards to modernize the territory’s energy systems and help residents install solar and battery storage.

Committee members pressed the director on deliverables and timing. Fleming said the Energy Office has closed nearly 20 low‑interest loans through a solar‑plus financing pilot that will add roughly 136 kilowatts of solar and 250 kilowatt‑hours of battery storage when installations finish. He described a launch this month of two Level 2 public chargers in St. Thomas and St. John and said the office plans a DC fast charger paired with a 400 kW solar farm at R.T. Park.

Fleming said the office’s federal grant portfolio includes a $62 million EPA Solar for All award (in planning through 2025), HUD CDBG‑DR Community Electrical Innovation funds, Department of Interior grants for fleet electrification, and Department of Energy partnerships on a proposed virtual power plant. On federal funding pauses earlier in the year, Fleming said most previously awarded grants were reopened and that program planning efforts have intensified.

Budget details and staffing: Fleming told senators the Energy Office plans for 18 full‑time positions and that 15 staff are funded by the general fund while some posts are federally supported. He said personnel services and fringe total roughly $1.6 million across federal and territorial sources. The office requested comparatively modest non‑personnel amounts for supplies, utilities and other services; Fleming said much of program delivery — rebates, loans and rebate outreach — is driven by federal awards.

Senators asked about vendor payments, post‑audit requests and the office’s ability to draw federal grants. Fleming and the Energy Office fiscal manager said vendor payments were current and that the office maintains frequent drawdown activity to reimburse territorial outlays from federal grants. Fleming also described efforts to sub‑grant federal funds to community organizations to scale implementation without dramatic agency staff growth.

What’s next: Fleming said the Energy Office will host a virtual power‑plant design workshop in late June with national labs and industry partners and expects program design announcements later this summer. The committee asked for outstanding post‑audit documents; Fleming agreed to provide requested items to allow further review of appropriations and grant execution.