SB304INTRODUCED
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SB304
CX6ZNQJ-1
By Senators Orr, Livingston, Allen, Sessions, Price, Chesteen,
Williams, Melson, Singleton, Roberts, Carnley, Bell, Kitchens
RFD: Fiscal Responsibility and Economic Development
First Read: 08-Apr-25
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7 CX6ZNQJ-1 04/08/2025 RA (F) RA 2025-1578
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First Read: 08-Apr-25
SYNOPSIS:
This bill would enact the Powering Growth Act.
This bill would create the Alabama Energy
Infrastructure Bank as a division within the State
Industrial Development Authority for the purpose of
selecting and assisting in the financing of qualified
energy infrastructure projects necessary to meet the
energy demands of economic development and industrial
recruitment projects throughout the State of Alabama.
The bill would specify sources for
capitalization and liability of the bank, as well as
the procedures for the bank to provide loans to
electric providers.
This bill would authorize the bank to issue
bonds for certain qualified projects under certain
conditions, secured by various revenue sources made
available to the bank.
This bill would also establish the Strategic
Energy Infrastructure Development Fund within the State
Treasury and provide for its funding and use by the
State Industrial Development Authority, to purchase or
otherwise obtain long lead-time energy infrastructure
equipment and support for industrial site needs
throughout the state.
This bill would require the authority to submit an
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This bill would require the authority to submit an
annual report to the Governor and the Legislature regarding
the activities of the infrastructure bank and use of the
strategic development fund.
A BILL
TO BE ENTITLED
AN ACT
Relating to energy infrastructure; to add Article 2E,
Chapter 10, Title 41, commencing with Section 41-10-48.01, to
the Code of Alabama 1975; to enact the Powering Growth Act; to
establish the Alabama Energy Infrastructure Bank as a division
within the State Industrial Development Authority for the
purpose of selecting and assisting in the financing of
qualified energy infrastructure projects necessary to meet the
energy demands of economic development and industrial
recruitment projects throughout the State of Alabama; to
provide for the sources of capitalization and liability of the
bank; to provide procedures for the issuance of loans to
electric providers; to authorize the bank to issue bonds under
certain conditions, secured by various revenue sources made
available to the bank; to establish the Strategic Energy
Infrastructure Development Fund within the State Treasury
under the State Industrial Development Authority and provide
for its funding; to authorize the State Industrial Development
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for its funding; to authorize the State Industrial Development
Authority to use the fund to purchase or otherwise obtain long
lead-time energy infrastructure equipment and support for
industrial site needs throughout the state; to establish a
process to sell and distribute equipment procured by the fund;
and to require the authority to submit an annual report to the
Governor and Legislature regarding the activities of the bank
and use of the strategic development fund.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Article 2E, Chapter 10, Title 41, commencing
with Section 41-10-48.01, is added to the Code of Alabama
1975, as follows:
§41-10-48.01
This act shall be known and may be sited as the
Powering Growth Act.
§41-10-48.02
(a) The Legislature finds and declares the following:
(1) That Alabama's new strategic economic growth plan
for the next decade identifies 10 target sectors, including
metals and advanced materials, chemical manufacturing, and
technology, that utilize a significant amount of energy and
will require expansions and upgrades of existing utility
infrastructure to meet the increased demand for energy.
(2) That Alabama's peak energy demand is expected to
grow by 6GW in the next decade, a 33 percent increase from
today, according to the State Infrastructure Study.
(3) That significant lead times exist for critical
energy infrastructure components, that will be neccessary to
meet the growing demand for energy and continued economic
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meet the growing demand for energy and continued economic
growth.
(4) That it is in the best interest of the state to
accelerate energy infrastructure development necessary to
sustain economic growth by:
a. Providing financing and support to the various
electric providers in the state through loans and other
financial assistance to accelerate the rate of energy
infrastructure development; and
b. Procuring energy infrastructure components with
long-lead times to make available to the various electric
providers in the state for more rapid deployment.
(b) By the passage of this act, it is the intent of the
Legislature to:
(1) Prescribe certain additional powers of the State
Industrial Development Authority;
(2) Create the Alabama Energy Infrastructure Bank and
the Alabama Energy Infrastructure Fund to provide strategic
financing for energy infrastructure projects that support
economic growth; and
(3) Establish for the Strategic Energy Infrastructure
Development Fund to address long-lead times for critical
energy infrastructure components.
§41-10-48.03
For the purposes of this act, the following words shall
have the following meanings:
(1) AUTHORITY. The State Industrial Development
Authority.
(2) BONDS. Includes bonds, notes, or other evidence of
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(2) BONDS. Includes bonds, notes, or other evidence of
indebtedness except as otherwise provided in this article.
(3) ELECTRIC PROVIDER. The same meaning as provided in
Section 37-16-3 and shall also include the Tennessee Valley
Authority and an authority as defined in Section 11-50A-1.
(4) ELIGIBLE PROJECT. Energy infrastructure projects
and associated costs that either:
a. Support a qualifying project approved by the
Department of Commerce pursuant to Section 40-18-372;
b. Provide or enhance the energy infrastructure
necessary for development of a site approved by the State
Industrial Development Authority for grants pursuant to
Article 2D, Chapter 10, Title 41; or
c. Support the construction, enhancement, expansion, or
upgrade of energy infrastructure projects in areas where the
energy infrastructure is anticipated to facilitate future
economic development as determined by the authority.
This term shall not include funding for activities
associated with the general maintenance, repair, or upkeep of
energy infrastructure.
(5) ENERGY BANK. The Alabama Energy Infrastructure
Bank.
(6) ENERGY FUND. The Alabama Energy Infrastructure Fund
established under Section 41-10-48.04.
(7) ENERGY INFRASTRUCTURE PROJECTS. Generation
infrastructure, transmission infrastructure, and projects
addressing long-lead items.
(8) FINANCIAL ASSISTANCE. Includes, but is not limited
to, contractual guarantees supporting eligible projects,
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to, contractual guarantees supporting eligible projects,
credit enhancement, capital or debt reserves for bonds or debt
instrument financing, interest rate subsidies, provision of
letters of credit and credit instruments, provision of bond or
other debt financing instrument security, reimbursable or
other contractual arrangements, and other lawful forms of
financing and methods of leveraging funds that are approved by
the authority, and in the case of federal funds, as allowed by
federal law.
(9) FINANCING AGREEMENT. Any agreement entered into
between the authority and an electric provider pertaining to a
loan or other financial assistance and other provisions as the
authority may determine. The term includes, without
limitation, a loan agreement, trust indenture, security
agreement, reimbursement agreement, guarantee agreement, bond
or note, ordinance or resolution, or similar instrument.
(10) LOAN. An obligation subject to repayment which is
provided by the authority to an electric provider for all or a
part of the costs of an eligible project. A loan may be
disbursed in anticipation of reimbursement for or direct
payment of costs of an eligible project or to refinance
temporary financing used to pay costs of an eligible project.
(11) LOAN OBLIGATION. A bond, note, or other evidence
of an obligation issued by an electric provider.
(12) LONG-LEAD ITEMS. Equipment, components, or
materials necessary for energy infrastructure projects that
require extended manufacturing, procurement, or delivery times
of at least 24 months and with a total cost that exceeds two
hundred fifty thousand dollars ($250,000), as may be approved
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hundred fifty thousand dollars ($250,000), as may be approved
by the authority.
(13) PERMITTED INVESTMENTS. Includes any of the
following:
a. Certificates of deposit, savings accounts, deposit
accounts, or money market deposits that are any of the
following:
1. Secured as provided in Chapter 14A of Title 41.
2. Fully insured by the FDIC.
3. Made with a bank whose unsecured, long-term
obligations are rated by at least one nationally recognized
securities rating agency in one of the three highest rating
categories assigned by that rating agency.
b. Direct obligations of, or obligations the full and
timely payment of which is guaranteed by, the United States of
America, including unit investment trusts and mutual funds
that invest solely in such obligations.
c. Bonds, debentures, notes, pass through securities,
or other obligations issued or guaranteed by any federal
agency or corporation which has been or may hereafter be
created by or pursuant to an act of the Congress of the United
States of America as an agency or instrumentality thereof if
such obligations are either of the following:
1. Backed by the full faith and credit of the United
States of America.
2. Rated by at least one nationally recognized
securities rating agency in one of the three highest rating
categories assigned by the rating agency.
d. Commercial paper which is rated not less than "P-1"
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d. Commercial paper which is rated not less than "P-1"
by Moody's Investor Service or "A-1+" by Standard and Poor’s
at the time of purchase.
e. Money market funds rated by at least one nationally
recognized securities rating agency in one of the three
highest rating categories assigned by that rating agency.
f. Bonds, warrants, notes, or other obligations issued
by any state, county, or municipality that are rated by at
least one nationally recognized securities rating agency in
one of the three highest rating categories assigned by that
rating agency.
g. Investment agreements, including, without
limitation, guaranteed investment contracts, repurchase
agreements, and forward purchase agreements, provided that all
of the following are satisfied:
1. Any securities purchased or held pursuant to such
agreement are otherwise permitted investments.
2. The counterparty's long-term debt obligations are
rated by at least one nationally recognized securities rating
agency in one of the three highest rating categories assigned
by that rating agency.
3. The securities, if purchased, are owned by the bank
or a trustee for any of the bank's obligations and are held by
the bank, the trustee, or a third-party custodian acceptable
to the bank or, if held as collateral, are held by the bank,
the trustee, or a third-party custodian acceptable to the bank
with a perfected first security interest in such collateral.
h. Investment or cash management agreements with a
commercial bank whose senior long-term debt obligations are,
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commercial bank whose senior long-term debt obligations are,
at the time of the acquisition of any such investment or cash
management agreement for the account of the bank, rated by at
least one nationally recognized securities rating agency in
one of the three highest rating categories assigned by that
rating agency, or with a commercial bank that is owned or
controlled by a bank holding company whose senior long-term
debt obligations, at the time of the acquisition of any such
investment or cash management agreement for the account of the
bank, are rated by at least one nationally recognized
securities rating agency in one of the three highest rating
categories assigned by that rating agency.
(14) REVENUES. When used with respect to the authority,
any receipts, fees, income, or other payments received or to
be received by the authority as a result of the authority's
activities under this article including, without limitation,
receipts and other payments deposited with the authority and
investment earnings on its funds and accounts.
(15) STRATEGIC DEVELOPMENT FUND. The Strategic Energy
Infrastructure Development Fund established under Section
41-10-48.12.
(16) TRANSMISSION INFRASTRUCTURE. Facilities and
systems responsible for transporting electricity from
generation sources, including, but not limited to,
high-voltage transmission lines, substations, interconnection
facilities, and associated equipment
§41-10-48.04
(a) There is created within the authority a division to
be known as the Alabama Energy Infrastructure Bank.
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be known as the Alabama Energy Infrastructure Bank.
(b) In recognition of increasing concerns regarding
energy capacity and the resilience of Alabama's energy
infrastructure for current and future needs, the corporate
purpose of the energy bank is to support the economic growth
of the state by identifying and supporting energy
infrastructure projects for eligible projects in Alabama.
(c) The energy bank will accomplish these goals through
the utilization of bond financing and other financial
assistance for energy infrastructure projects.
(d) The energy bank will utilize existing and future
revenue sources in order to create the necessary funding
streams to secure bond financing and other financial
assistance that will allow the state to enhance and expand its
energy infrastructure.
(e) Through the energy bank, the authority may act as a
state energy financing institution as that term is defined 42
U.S.C. § 16511(7)(A), or any successor statute, for purposes
of obtaining federal support for Alabama energy infrastructure
projects.
(f) The Alabama Energy Infrastructure Fund is created
in the State Treasury. All proceeds from the revenues
designated to the energy fund, pursuant to this act and any
other provision of law, shall be deposited into the energy
fund to be expended only as provided in this act.
§41-10-48.05
In addition to the powers granted to it in Section
41-10-26, Sections 41-10-37 through 41-10-43, Sections
41-10-44.1 through 41-10-44.15, and Sections 41-10-47.01
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41-10-44.1 through 41-10-44.15, and Sections 41-10-47.01
through 41-10-47.09, with respect to the energy bank and the
energy fund, the authority shall have the following additional
powers to:
(1) Make loans or provide other financial assistance to
electric providers to finance or reduce the costs of eligible
projects, to collect fees and charges related to such loans or
other financial assistance, and to acquire, hold, and sell
loan obligations at prices and in a manner as the authority
determines advisable.
(2) Enter into contracts, arrangements, and agreements
with electric providers and other persons and execute and
deliver all financing agreements and other instruments
necessary or convenient to the exercise of the powers granted
in this article.
(3) Enter into agreements with a department, agency, or
instrumentality of the United States of America or of this
state or another state for the purpose of planning, securing,
and providing for the financing of eligible projects.
(4) Enter into contracts, arrangements, or agreements
with external experts for the purpose of providing advice
regarding the operations of the bank and viability of the
fund, as well as the necessity of project applications from
the bank and the strategic development fund.
(5) Procure insurance, guarantees, letters of credit,
and other forms of collateral or security or credit support
from any public entity, including any department, agency, or
instrumentality of the United States of America or this state,
for the payment of any bonds issued by it, including the power
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for the payment of any bonds issued by it, including the power
to pay premiums or fees on any insurance, guarantees, letters
of credit, and other forms of collateral or security or credit
support.
(6) Collect or authorize the trustee under any trust
indenture securing any bonds to collect amounts due under any
loan obligations owned by it, including taking the action
required to obtain payment of any sums in default.
(7) Unless restricted under any agreement with holders
of bonds, consent to any modification with respect to the rate
of interest, time, and payment of any installment of principal
or interest, or premium, if any, or any other term of any loan
obligations owned by it or held by the applicable indenture
trustee.
(8) Borrow money through the issuance of bonds and
other forms of indebtedness as provided in this article, and
to secure the repayment of the same as provided in this
article including by pledging or granting of a security
interest.
(9) Expend funds credited to the authority resulting
from its operations of the energy bank as the authority may
determine as being necessary or desirable for the costs of
administering the operations of the energy bank.
(10) Procure insurance against losses in connection
with its property, assets, or activities including insurance
against liability for its acts or the acts of its employees or
agents or to establish cash reserves to enable it to act as a
self-insurer against any and all such losses.
(11) Apply for, receive, and accept from any source,
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(11) Apply for, receive, and accept from any source,
aid, grants, and contributions of money, property, labor, or
other things of value to be used to carry out the purposes of
this article subject to the conditions upon which the aid,
grants, or contributions are made.
(12) Do all other things necessary or convenient to
carry out the purposes and powers conferred by this act.
§41-10-48.06
(a) In considering applications for eligible projects,
the authority may request additional input from external
experts as to the urgency of the energy infrastructure
project, the ability of the applicant to execute the project
within the stated time frame, and other assistance as
determined by the authority.
(b) The total aggregate amount of loans or other
financial assistance provided by the bank in any year shall be
limited to an amount that would not jeopardize the viability
of the fund, as determined by the authority with the advice of
external experts.
(c) In selecting eligible projects, the authority shall
consider, with assistance from external experts, project
feasibility and the degree of financial risk to be assumed by
the authority.
(d) The authority shall ensure that no electric
provider receives more than 50 percent of the loan or
financial assistance funds provided by the bank in each
calendar year.
(e) Any nonpublic or proprietary information included
in an application by an economic development prospect or
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in an application by an economic development prospect or
electric provider shall be subject to the Department of
Commerce's protections for such information, provided in
Section 41-29-3.
§41-10-48.07
(a)(1) An electric provider (or more than one electric
providers in a joint application) may apply to the authority
for the purposes of obtaining financial assistance to support
an eligible project. An application under this subsection
shall include the following:
a. A detailed summary of the proposed energy
infrastructure project, including location, scope, timeline,
and total estimated cost.
b. Identification of the energy infrastructure project
to be funded.
c. Anticipated job creation, business attraction, or
commercial or industrial expansion to be facilitated by the
energy infrastructure project as applicable.
d. Projected load demand and anticipated capacity
increases.
(2) An application under this subsection for more than
one electric provider shall also include:
a. Identification of all participating electric
providers and designation of a lead applicant responsible for
administration of funds; and
b. Explanation of how participating electric providers
will collaborate on energy infrastructure project
implementation.
(3) During the term that the financial assistance is
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(3) During the term that the financial assistance is
being provided under this subsection, the electric provider
shall submit an annual report to the authority detailing the
progress of the approved eligible project and the use of the
financial assistance provided to the electric provider.
(b)(1) An electric provider and an economic development
prospect may submit a joint application for a long-lead item
or energy infrastructure project if the provision of financial
assistance from the energy bank will facilitate an eligible
project for a new or expanding industrial or commercial
facility within the state.
(2) A joint application under this subsection must
include:
a. A statement from the electric provider detailing the
infrastructure improvements necessary to meet the eligible
prospect's energy requirements; and
b. An assessment of economic impact, including
projected job creation, capital investment, and state and
local sales and property tax revenues generated from the
eligible project.
(3) During the term that the financial assistance is
being provided under this subsection, the economic development
prospect and the electric provider shall submit an annual
report to the authority detailing the progress of the approved
eligible project and the use of the financial assistance
provided.
(4) If the economic development prospect withdraws,
fails to commence operations, or materially alters its energy
needs, the authority may enforce a contractual obligation
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needs, the authority may enforce a contractual obligation
against the economic development prospect for the authority's
provision of financial assistance.
§41-10-48.08
(a) The authority may use the following sources to
capitalize the energy fund and to carry out its purposes of
this section:
(1) Tobacco settlement funds from the Alabama 21st
Century Fund.
(2) Federal funds made available to the state for the
energy bank or for eligible projects.
(3) Contributions and donations from public and private
entities and any other source as may become available to the
authority, including, but not limited to, appropriations from
the Legislature.
(4) All monies paid or credited to the authority, by
contract or otherwise, payments of principal and interest on
loans or other financial assistance made from the authority,
and interest earnings which may accrue from the investment or
reinvestment of the authority's monies.
(5) Proceeds from the issuance of bonds as provided in
this article.
(6) Other lawful sources as determined appropriate by
the authority.
(b) Any pledge of the revenues and amounts described in
subsection (a) to provide funds for payment of debt service on
bonds issued by the authority or to pay obligations of the
authority with respect to other financial assistance shall
continue until the bonds have been fully repaid or the
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continue until the bonds have been fully repaid or the
authority's obligations with respect to the other financial
assistance have terminated, unless the trust indenture,
financing agreement, or other related instrument providing for
the pledge expressly provides that the pledge may be
terminated earlier or otherwise limited by the authority.
§41-10-48.09
(a) Whenever the authority determines that it shall
become necessary that monies be raised for eligible projects,
including monies to be used to refund any bonds then
outstanding, the authority may issue bonds as provided in this
article.
(b) The authority may pledge any of its revenue or
funds to the payment of its bonds, subject to any prior
pledges for other outstanding bonds or other financial
assistance of the energy bank. Bonds may be secured by a
pledge of any loan obligation owned by the authority or held
by an indenture trustee, any grant, contribution, or guaranty
from the United States of America, the state, or any
corporation, association, institution, or person, any other
financial assistance provided by the authority, any bond
insurance, guarantees, letters of credit, or other forms of
credit enhancement purchased or otherwise obtained by the
authority from any public or private entity, any other
property or assets of the authority, or a pledge of or grant
of security interest in any money, income, or revenue of the
authority from any source.
(c) Notwithstanding any provision of law to the
contrary, the total aggregate principal amount of bonds issued
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contrary, the total aggregate principal amount of bonds issued
by the authority under this article shall not exceed one
billion dollars ($1,000,000,000). This debt limitation shall
apply solely to bonds issued for eligible project financing
purposes under this article and shall not be construed to
limit any other bonding authority granted to the authority
under separate provisions of law.
§41-10-48.10
Bonds or other financial assistance issued by the
authority shall not constitute an obligation or debt of this
state, or any of its political subdivisions, but shall be
limited obligations of the authority payable solely from the
revenue, money, or property of the authority pledged for such
purpose as provided in this article. Any bonds issued or other
financial assistance of the authority do not constitute an
indebtedness of the state or any of its political subdivisions
within the meaning of any constitutional or statutory
limitation, and neither the full faith and credit nor the
taxing power of the state, or any of its political
subdivisions, is pledged to the payment thereof. No member of
the authority or any person executing bonds, other financial
assistance, or other obligations of the authority is liable
personally thereon by reason of their issuance or execution.
Each bond, other financial assistance, and other obligation
issued under this article shall contain on its face a
statement to the effect of the following:
(1) The instrument is not a general obligation of the
authority but is a limited obligation of the authority payable
solely from the revenue, money, or property of the authority
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solely from the revenue, money, or property of the authority
pledged.
(2) The instrument is not an obligation or debt of the
state, or any of its political subdivisions, and neither the
full faith and credit nor the taxing power of the state, or
any of its political subdivisions, is pledged to the payment
of the instrument.
(3) The authority does not have taxing power.
§41-10-48.11
(a)(1) The bonds of the authority must be authorized by
a resolution of the authority.
(2) The bonds shall bear the date and mature at the
time which the resolution provides, except that no bond may
mature more than 40 years from its date of issue.
(3) The bonds may be in the denominations, be executed
in the manner, be payable in the medium of payment, be payable
at the place and at the time, and be subject to redemption or
repurchase and contain other provisions determined by the
authority prior to their issuance.
(4) The bonds may bear interest payable at a time and
at a rate as determined by the authority.
(5) Bonds may be sold by the authority at public or
private sale at the price it determines and approves.
(b)(1) Bonds may be secured by a trust indenture
between the authority and a corporate trustee, which may be
the State Treasurer or any bank having trust powers or any
trust company doing business in this state. A trust indenture
may contain provisions for protecting and enforcing the rights
and remedies of the bondholders which are reasonable and
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and remedies of the bondholders which are reasonable and
proper, including covenants setting forth the duties of the
authority in relation to the exercise of its powers and the
custody, safekeeping, and application of its money. The
authority may provide by the trust indenture for the payment
of the proceeds of the bonds and all or any part of the
revenues of the authority to the trustee under the trust
indenture or to some other depository, and for the method of
its disbursement with safeguards and restrictions prescribed
by it. All expenses incurred in performing the obligations of
the authority under the trust indenture may be treated as part
of its operating expenses.
(2) Any resolution or trust indenture pursuant to which
bonds are issued may contain provisions which are part of the
contract with the bondholders of the bonds and which include
the following:
a. Pledging specific revenues of the authority to
secure the payment of the bonds.
b. Pledging specific assets of the authority, including
loan obligations owned by it to secure the payment of the
bonds.
c. The use and disposition of the gross income from,
and payment of the principal of, and interest on loan
obligations owned by the authority or held by an indenture
trustee.
d. The establishment of reserves, sinking funds, and
other funds and accounts, and their regulation and
disposition.
e. Limitations on the purposes to which the proceeds
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e. Limitations on the purposes to which the proceeds
from the sale of the bonds may be applied, and limitations on
pledging the proceeds to secure the payment of the bonds.
f. Limitations on the issuance of additional bonds, the
terms upon which additional bonds may be issued and secured,
and the refunding of outstanding or other bonds.
g. The procedure, if any, by which the terms of any
contract with bondholders may be amended or abrogated, the
amount of bonds, if any, the holders of which must consent to,
and the manner in which any consent may be given.
h. Limitations on the amount of money to be expended by
the authority for its operating expenses.
i. Vesting in a trustee property, rights, powers, and
duties as the authority may determine, limiting or abrogating
the right of bondholders to appoint a trustee, and limiting
the rights, powers, and duties of the trustee.
j. Defining the acts or omissions which constitute a
default, the obligations or duties of the authority to the
holders of the bonds, and the rights and remedies of the
holders of the bonds in the event of default, including as a
matter of right the appointment of a receiver, and all other
rights generally available to creditors.
k. Requiring the authority or the trustee under the
trust indenture to take any and all other action to obtain
payment of all sums required to eliminate any default as to
any principal of and interest on loan obligations owned by the
authority or held by a trustee, which may be authorized by the
laws of this state.
l. Any other matter relating to the terms of the bonds
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l. Any other matter relating to the terms of the bonds
or the security or protection of the holders of the bonds
which may be considered appropriate.
(c)(1) Any pledge made by the authority to secure its
obligations with respect to bonds or other financial
assistance is valid and binding from the time the pledge is
made. The revenue, money, or property pledged and received by
the authority is immediately subject to the lien of the pledge
without any physical delivery or further act. The lien of any
pledge is valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
authority, irrespective of whether the parties have notice of
the pledge.
(2) No recording or filing of the resolution
authorizing the issuance of bonds or other financial
assistance, the trust indenture or other financing agreement
securing the bonds or other financial assistance, or any other
instrument including filings under the Uniform Commercial Code
is necessary to create or perfect any pledge or security
interest granted by the authority to secure any bonds or other
financial assistance.
(d) The authority, subject to agreements with
bondholders as may then exist, may purchase outstanding bonds
of the authority with any available funds, at any reasonable
price. If the bonds are then redeemable, the price shall not
exceed the redemption price then applicable plus accrued
interest to the next interest payment date.
(e) Bonds of the authority shall be in a form and shall
be executed in a manner prescribed by the authority.
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be executed in a manner prescribed by the authority.
(f) If any of the directors or officers of the
authority cease to be directors or officers before the
delivery of any bonds signed by them, their signatures or
authorized facsimile signatures are nevertheless valid and
sufficient for all purposes as if they had remained in office
until the delivery of the bonds.
(g) Subsequent amendments to this article may not limit
the rights vested in the authority with respect to any
agreements made with, or remedies available to, the holders of
bonds issued under this article before the enactment of the
amendments until the bonds, with all premiums and interest on
them, and all costs and expenses in connection with any
proceeding by or on behalf of the holders, are fully satisfied
and discharged.
(h) Notwithstanding the exemptions provided in Sections
41-10-28 and 41-10-44.13, any bonds issued by the authority
under this article, the transfer of bonds, and the income from
them, are free from taxation and assessment of every kind by
the state and by the local governments and other political
subdivisions of the state.
(i)(1) The bonds issued by the authority are legal
investments in which all public officers or public bodies of
the state and its political subdivisions; all municipalities
and political subdivisions; all insurance companies and
associations and other persons carrying on insurance business;
all banks, bankers, banking associations, trust companies,
savings banks, savings associations, including savings and
loan association investment companies, and other persons
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loan association investment companies, and other persons
carrying on a banking business; all administrators, guardians,
executors, trustees, and other fiduciaries; and all other
persons who are now or may be authorized in the future to
invest in bonds or other obligations of the state, may invest
funds in their control or belonging to them.
(2) The bonds of the authority are also securities
which may be deposited with and received by all public
officers and bodies of the state or any agency or political
subdivision of the state and all municipalities and public
corporations for any purpose for which the deposit of bonds or
other obligations of the state is now or may later be required
by law.
(j)(1) The granting of other financial assistance by
the authority shall be authorized by a resolution of the
authority.
(2) The authority may execute instruments and enter
into financing agreements, including, without limitation, a
trust indenture between the authority and a corporate trustee,
which may be the State Treasurer or any bank having trust
powers or any trust company doing business in this state,
containing the terms and conditions as the authority shall
determine in connection with the provision of other financial
assistance and securing its obligations with respect to other
financial assistance.
(3) The authority may pledge any of its revenues or
funds to the payment of other financial assistance provided by
the authority, subject to any prior pledges for outstanding
bonds or other financial assistance of the authority. Other
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bonds or other financial assistance of the authority. Other
financial assistance may be secured by a pledge of any loan
obligation owned by the authority or held by an indenture
trustee, any grant, contribution, or guaranty from the United
States of America, the state, or any corporation, association,
institution, or person, any other property or assets of the
authority, or a pledge or grant of a security interest in or
any money, income, or revenue of the authority from any
source.
(k) Neither the authority, nor any member, officer,
employee, or committee of the authority acting on behalf of
it, while acting within the scope of authority granted by this
article, is subject to any liability resulting from carrying
out any of the powers given in this article, unless the
officer or employee acted in a reckless manner.
§41-10-48.12
(a) For the benefit of the state and the residents of
the state, there is created in the State Treasury an
irrevocable fund named the Strategic Energy Infrastructure
Development Fund.
(b) The strategic development fund shall be under the
management and control of the authority, and all powers
necessary or appropriate for the management and control of the
strategic development fund shall be vested solely in the
authority. The authority may make whatever representations and
covenants it finds reasonable or necessary for federal grant
applications and agreements, and it may take whatever actions
it deems reasonable or necessary to implement such grants.
(c) The strategic development fund shall be funded
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(c) The strategic development fund shall be funded
initially with an appropriation of fifty million dollars
($50,000,000) from the Alabama 21st Century Fund, with
additional funding sources including:
(1) Revenue sources as directed by, and at the
discretion of, the Legislature;
(2) Appropriations as directed by, and at the
discretion of, the Legislature;
(3) Federal grants and other financing which the
authority determines will have the effect of advancing
economic development in Alabama;
(4) Proceeds of any gifts, grants, or contributions;
and/or
(5) Any other lawful sources.
(d) The strategic development fund shall be
administered in accordance with this section. All revenues
received by the strategic development fund shall be deposited
in the fund upon receipt and may be invested by the authority
and withdrawn and expended by the authority in a manner
consistent with the powers granted to the authority.
(e) Funding shall be provided to projects in accordance
with Section 41-10-48.12.1 in the form of financial assistance
or grants.
§41-10-48.12.1
(a)(1) An electric provider and an economic development
prospect may submit a joint application for funding from the
strategic development fund if the provision of funding from
the strategic development fund will facilitate a strategic
development project for a new or expanding industrial or
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development project for a new or expanding industrial or
commercial facility within the state.
(2) A joint application under this subsection must
include:
a. A statement from the electric provider detailing the
infrastructure improvements necessary to meet the prospect's
energy requirements; and
b. An assessment of economic impact, including
projected job creation, capital investment, and state and
local sales and property tax revenues generated from the
strategic development project.
(3) During the term that the funding is being provided
under this subsection, the economic development prospect and
the electric provider shall submit an annual report to the
authority detailing the progress of the approved strategic
development project and the use of the financial assistance
provided.
(4) If the economic development prospect withdraws,
fails to commence operations, or materially alters its energy
needs, the authority may enforce a contractual obligation
against the economic development prospect for the authority's
provision of funding.
(b) The strategic development fund shall be used for
the following purposes only:
(1) For the authority to enter into priority production
placement agreements with key manufacturers of long lead-time
electrical equipment, including, but not limited to,
transformers, high-voltage switchgear, and specialized circuit
breakers for an economic development prospect being recruited
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breakers for an economic development prospect being recruited
to or expanding in the state.
(2) Notwithstanding subsection (c), to provide funding
for site-specific infrastructure development, including, but
not limited to, the extension of transmission lines and
pipelines; enhancements or expansions to substation capacity;
and the acquisition of rights-of-way for key transmission and
pipeline infrastructure located near key industrial or
commercial sites, as identified by the authority for
development.
(c) An electric provider shall not be eligible to be a
direct recipient of funding from the strategic development
fund.
(d) Any nonpublic or proprietary information included
in an application by an economic development prospect or
electric provider shall be subject to the Department of
Commerce's protections for such information, provided in
Section 41-29-3.
§41-10-48.13
(a) Following the close of each state fiscal year, the
authority shall submit an annual report on the activities of
the energy bank and use of the strategic development fund for
the preceding year to the Governor and to the Legislature. The
authority also shall submit an annual report to the
appropriate federal agency in accordance with requirements of
any federal program.
(b) The authority shall be subject only to audits as
required by existing state law and applicable federal
regulations.
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regulations.
§41-10-48.14
The authority may enter into such contracts,
agreements, and investments and may otherwise expend monies
without compliance with Chapter 2 of Title 39, Article 5,
Chapter 4 of Title 41, or Chapter 16 of Title 41.
§41-10-48.15
(a) This article, being for the welfare of this state
and its inhabitants, shall be liberally construed to affect
the purposes specified.
(b) In no event does this article authorize any
electric provider to provide retail electric service outside
of its electric service territory as determined under the
applicable provisions of Chapter 14 of Title 37. Nothing in
this article is intended to amend, repeal, enlarge, or
otherwise affect Chapter 14 of Title 37.
Section 2. This act shall become effective on October
1, 2025.
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