(San Juan, Puerto Rico) April 8, 2026 –Governor Jenniffer González-Colón of Puerto Rico, alongside Secretary Sebastián Negrón-Reichard of the Puerto Rico Department of Economic Development and Commerce (DDEC, for its Spanish acronym) Puerto Rico Efficiency Coordinator Verónica Ferraiuoli, announced today the filing of legislation to establish a new Planning and Permitting Code. This landmark measure seeks to dismantle unnecessary bureaucracy and lay the groundwork to facilitate investment and development across the Island.
The proposal fulfills a key commitment in the Administration’s governing program to transform and streamline Puerto Rico’s permitting process as a cornerstone of economic development. On the same day she was sworn in, Governor González-Colón signed Executive Order OE-2025-002 creating the Permitting Simplification Task Force. She also enacted Executive Order 2025-003 to expedite the review and approval of permits for federally funded, emergency, and critical or strategic projects, and Executive Order 2025-004, which exempts permitting and endorsement requirements for landslide-related projects funded with state resources.
The bill introduced today is the direct result of the Task Force’s Final Report, published on December 10, 2025. The report diagnosed a system paralyzed by a complex and inconsistent legal framework spanning thousands of pages across nearly 100 legal instruments, including 45 separate laws. The proposed model establishes a single, consistent, and uniform “rulebook,” eliminating duplicative criteria and significantly reducing litigation caused by conflicts among legal provisions.
“Regulatory complexity is not just an administrative burden; it is an invisible tax that ultimately raises the cost of housing, goods, and essential services for our people,” Governor González-Colón stated. “This inefficient system delays critical projects and directly impacts affordability for everyday citizens. With this new model, we are restoring certainty to the process so that the cost of living in Puerto Rico is no longer inflated by government inaction.”
The new Code sets clear standards of interpretation, defines jurisdictional authority, and establishes who makes decisions, when, and under what criteria. It limits administrative discretion through objective and verifiable rules. It also requires that any permit denial be based on specific provisions and provide a genuine opportunity for correction before issuance.
Secretary Negrón-Reichard emphasized the impact of the current system’s deficiencies on Puerto Rico’s competitiveness. “Puerto Rico has ranked last in economic freedom among all U.S. jurisdictions for three consecutive years, according to the Fraser Index, and the Doing Business North America report placed San Juan last among 83 jurisdictions, citing construction permitting as our greatest weakness,” he noted. “Studies show that permitting can account for between 10% and 30% of a project’s development cost. By simplifying this process, we not only attract capital seeking predictability, but also enable, among other things, the expansion of much-needed affordable housing.”
The Secretary further explained that the bill reorganizes the institutional structure of the system. The current Permits Management Office (OGPe, for its Spanish acronym) would be transformed into the Central Permitting Office (OCP, for its Spanish acronym), becoming the sole entity responsible for issuing permits and licenses across the Government of Puerto Rico, including recommendations currently issued by multiple agencies. The Puerto Rico Department of Natural and Environmental Resources and the Puerto Rico Department of Agriculture, among others, would shift their focus to enforcement and compliance, while the Puerto Rico Planning Board would become the Puerto Rico Planning and Urban Development Board, focusing exclusively on land-use policy and territorial planning.
The Code also establishes a Unified Regulation that consolidates all permitting requirements into a single regulatory body with indefinite validity and periodic partial updates.
Puerto Rico Efficiency Coordinator Ferraiuoli underscored the technological and operational transformation of the State, noting that “with the approval of this Code and its implementation, the average permitting timeline could be reduced by up to 80% compared to current processing times.” She explained that the new model standardizes evaluation criteria through the use of official data and Geographic Information Systems (GIS), enabling a true balance between economic development and environmental protection, with clear safeguards and no procedural duplication.
The model clearly distinguishes between ministerial determinations (limited to verifying objective compliance) and discretionary determinations (requiring technical judgment based on explicit criteria), and establishes mandatory maximum timelines for decisions, with consequences for noncompliance.
The legislation also creates special categories such as Priority High Socioeconomic Impact Projects—covering critical infrastructure, energy, housing, tourism, and federally funded initiatives—with expedited processing. It expands exemptions for low-risk projects that do not alter use or safety; introduces an Automatic Single Permit for low-risk small and medium-sized businesses; and consolidates incidental permits within the main construction permit to avoid post-approval delays.
On environmental matters, the new model maintains rigorous standards—including categorical exclusions, environmental assessments, and environmental impact statements—with defined timelines of up to 180 days, while prohibiting the alteration of critical habitats.
“For those concerned about enforcement and environmental protection, this legislation strengthens accountability by establishing mandatory deadlines and legal consequences for government inaction,” the Governor emphasized. “With this model, Puerto Rico aims to transition from a slow, prevention-based system to one centered on facilitation, trust, and robust oversight.”
This initiative aligns Puerto Rico more closely with high-growth states such as Texas and Florida, where planning and permitting functions are consolidated within a single governmental entity to streamline development while maintaining strong oversight.
Secretary Negrón-Reichard highlighted the collaboration of government agencies that participated in technical sessions and provided essential input during the drafting process. He also noted close coordination with the Financial Oversight and Management Board for Puerto Rico to ensure the proposal aligns with fiscal plans and economic revitalization goals. Additionally, he emphasized the participation of organizations representing small and medium-sized businesses, as well as professionals who interact directly with the permitting system.
For the full text of the Planning and Permitting Code and additional details, visit: desarrollo.pr.gov/conpermiso
