SB304 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Arthur OrrSenator
Republican
Session: 2025 Regular Session
Title: Powering Growth Act established, Alabama Energy Infrastructure Bank and the Strategic Energy Procurement Fund established under the State Industrial Development Authority to assist in obtaining equipment and providing financing for qualified energy infrastructure projects
Summary: The Powering Growth Act creates a state energy financing system, establishing an Alabama Energy Infrastructure Bank and a Strategic Energy Infrastructure Development Fund to finance and accelerate energy infrastructure for economic growth.
What This Bill Does
It creates the Alabama Energy Infrastructure Bank as a division of the State Industrial Development Authority to help finance energy infrastructure projects needed for economic development and industrial recruitment in Alabama. The bank may provide loans to electric providers and issue bonds secured by various revenue sources to fund eligible projects. It also creates the Strategic Energy Infrastructure Development Fund within the State Treasury to purchase long-lead-time energy equipment and provide site-related support, with the Authority managing and directing funds for rural-area infrastructure and industrial site needs. The act specifies funding sources (including tobacco settlement funds, federal funds, private contributions, and an initial $50 million from the Alabama 21st Century Fund) and requires annual reports to the Governor and Legislature, plus federal reporting as required.

Who It Affects
Electric providers (including TVA and other electric utilities) that may receive loans, financing, or bond support for eligible energy infrastructure projects.
Rural areas and economic development prospects (new or expanding industrial or commercial facilities) that would benefit from prioritized funding and accelerated energy infrastructure improvements.

Key Provisions
Establishes the Alabama Energy Infrastructure Bank as a division of the State Industrial Development Authority to finance qualified energy infrastructure projects.
Creates the Alabama Energy Infrastructure Fund within the State Treasury and the Strategic Energy Infrastructure Development Fund, to fund energy infrastructure for rural and site-development needs; funds are managed by the Authority.
Authorizes the Bank to make loans to electric providers and to issue bonds secured by revenues or other eligible security, with bonds not constituting state debt and with terms set by the Authority.
Imposes a total debt cap of $1 billion for bonds issued under the act for eligible project financing; bonds may be sold publicly or privately and may be secured by various protections including trust indentures.
Allocates revenues and provides for investment and expenditure of funds, including potential use of federal funds, grants, and contributions; bonds and financial assistance are exempt from state and local taxation.
Annual limits include: no single electric provider may receive more than 40% of annual bank financing unless a joint application is used, and no provider may receive more than 50% in a calendar year; at least 40% of annual funds must go to rural-area energy projects.
Long-lead items (equipment with at least 24 months lead time and cost over $250,000) and generation/transmission infrastructure are eligible; joint applications may be used for multi-provider projects or to fund-site-specific infrastructure improvements.
Requires annual reports to the Governor, Legislature, and federal authorities; audits are conducted under existing state and applicable federal requirements.
Effective date is June 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Economic Development