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Alabama Senate approves energy and economic-development measures, advances Powering Growth plans
Summary
The Alabama Senate passed a package of bills directing surplus funds from the Alabama 20 First Century Fund toward an energy infrastructure bank and other economic development priorities, and approved companion legislation to create the bank and related authorities.
The Alabama Senate on the floor approved legislation redirecting surplus money from the Alabama 20 First Century Fund toward an energy infrastructure and economic development program and passed a companion bill to establish an energy bank intended to finance transmission and other energy projects.
The measures passed as part of a special-order calendar and include Senate Bill 313, which reallocates surplus funds in the Alabama 20 First Century Fund and directs transfers to the State Industrial Development Authority and other accounts; Senate Bill 304, the Powering Growth Act, intended to establish an Alabama Energy Infrastructure Bank; and Senate Bill 315, related changes to the 20 First Century Authority. Senators also debated, at a high level, support for Innovate Alabama and the need to shore up rural economic development.
Senator C. Smitherman sponsored Senate Bill 313 and offered an amendment that, according to his floor explanation, does three things: it provides a $5 million transfer from the 20 First Century Fund to the Alabama Department of Commerce to establish international offices and rural development strategies and to cover operations and personnel; it addresses a technical finance-department revision for future debt obligations of the 20 First Century Fund; and it accelerates distribution of accumulated surplus funding from fiscal 2026 to fiscal 2025 to align with the Commerce transfers. Smitherman said the bill amends Alabama Code section 41-10-629, the statute that governs the Alabama 20 First Century Fund.
Senator Orr, sponsor of Senate Bill 304 (Powering Growth Act), told colleagues the measure and its companion bills are an “important step” to meet future electrical needs and help finance buildout of transmission and grid projects that supporters say are needed to attract high-energy-demand industries.
Senator Singleton spoke in favor of innovation-focused bills on the calendar and highlighted Innovate Alabama, describing it as an engine for supporting startups and job growth and endorsing staggered terms for the Innovate Alabama board included in Senate Bill 317 (on the special-order calendar).
Under the language explained on the floor, the 20 First Century Fund—funded by tobacco settlement revenue and used historically to secure bonds issued by the 20 First Century Authority—would transfer surplus funds not needed for debt service to SIDA for the new Strategic Energy Infrastructure Development Fund (part of the Energy Bank). The bill as explained would also direct $50,000,000 to SIDA for the development fund, $10,000,000 to the Alabama Incentive Finance Authority, and $5,000,000 to the Department of Commerce (the $5 million figure was added in Smitherman’s amendment).
Senators emphasized that provisions in SB313 are contingent on separate legislation that establishes the Energy Bank and development fund. Senator Smitherman said the transfer language is effective only if the energy-bank legislation passes.
Votes at a glance - Senate Bill 304 (Powering Growth Act) — Final passage (vote recorded on the floor): 30 ayes, 0 nays. Outcome: passed. Sponsor: Senator Orr. Notes: committee amendment adopted on the floor prior to final passage. - Senate Bill 313 (Alabama 20 First Century Fund reallocation) — Final passage as amended. Outcome: passed. Sponsor: Senator Smitherman. Notes: amendment redirected $5,000,000 to the Department of Commerce and accelerated surplus transfers; effect contingent on enactment of energy-bank legislation. - Senate Bill 315 (Alabama 20 First Century Authority provisions) — Final passage. Outcome: passed. Sponsor: Senator Singleton. - Senate Bill 317 (Alabama Innovation Corporation, staggered board terms) — Final passage. Outcome: passed. Sponsor: Senator Singleton.
What it means and next steps Supporters said the package is intended to create a revenue stream for an energy bank to fund transmission and grid projects that proponents contend will help recruit and retain high-energy industries and expand rural development. Sponsors repeatedly noted that the transfer of surplus funds from the 20 First Century Fund is contingent on creating the Energy Bank and that one bill’s effectiveness depends on enactment of the other.
The bills now move to the next steps required by the legislative process (transmission to the House or enrollment and presentation to the governor, as applicable). The floor debate described the intended uses for the new funds and companies and agencies that would receive transfers, but did not contain detailed staff reports or fiscal notes presented on the floor during the remarks.
Ending note Senators framed the measures as part of a broader push to upgrade infrastructure and broaden Alabama’s economy; supporters cited the need to build transmission and support rural development. Opponents did not offer extended floor debate during the passage on the special-order calendar recorded in the transcript.
