The Alabama Senate on Thursday approved legislation to allow a state entity to borrow up to $1 billion to help build energy infrastructure “to facilitate future economic development,” with an emphasis on development in rural areas.
Senate Bill 304 by Sen. Arthur Orr, R-Decatur, authorizes the State Industrial Development Authority to issue up to $1 billion in bonds to provide loans and other financial assistance for eligible energy infrastructure projects through an “energy infrastructure bank.”
Eligible projects are defined in the bill as those identified by the Alabama Department of Commerce and qualifying for economic development incentives under the Alabama Jobs Act; energy infrastructure necessary for the development of a site approved by the State Industrial Development Authority; or to support “energy infrastructure projects in areas where the energy infrastructure is anticipated to facilitate future economic development…”
Orr previously said the low- or no-interest loans will go mainly to co-op or municipal electrical providers. The money would not be used to facilitate power generation, but the transformers, lines and other equipment needed to get electricity to sites.
The bill was amended on the Senate floor to require 40% of funds allocated each year to first be offered to infrastructure projects in rural areas. The bill defines rural areas as counties with fewer than 135,000 people, per the most recent census.