Alabama Governor Signs Powering Growth Act to Boost Energy Infrastructure
MONTGOMERY, Ala. — In a significant move to enhance energy infrastructure and stimulate industrial growth, Governor Kay Ivey signed the Powering Growth Act on Wednesday. This legislation aims to support economic development, particularly in Alabama’s rural areas.
“The future of Alabama’s economy hinges on our ability to support it with a robust energy infrastructure,” Ivey stated. “Powering Growth is focused on preparing our state to compete both regionally and nationally.”
The key component of the Act is the establishment of the Alabama Energy Infrastructure Bank, a branch of the State Industrial Development Authority. This new bank is authorized to issue up to $1 billion in bonds to finance energy projects vital for industrial expansion. Additionally, two new funds—the Alabama Energy Infrastructure Fund and the Strategic Energy Infrastructure Development Fund—will be initiated with an initial allocation of $50 million, primarily sourced from the state’s tobacco settlement fund.
Sponsored by Sen. Arthur Orr, R-Decatur, the Act emphasizes a collaborative approach to address future energy demands. “We’re laying the groundwork today to ensure we can thrive economically for years to come,” Orr remarked.
A notable feature of the legislation is its focus on rural areas. It mandates that 40% of loans from the Alabama Energy Infrastructure Bank must benefit projects in counties with fewer than 150,000 residents. Moreover, starting in 2030, at least 50% of the Strategic Energy Infrastructure Development Fund will be allocated to rural initiatives.
Senate Pro Tem Garlan Gudger highlighted the importance of supporting rural communities, stating, “Energy security is critical for growth, and this investment will foster significant economic development in our rural regions."
The overall cost of the Powering Growth Act is projected to reach $50.3 million over 40 years, reflecting a strategic investment toward Alabama’s energy future.
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