Lawmakers have agreed to create a fund geared toward energy infrastructure.
The chambers adopted the conference report for HB 1393 on Tuesday, sending the measure onto the governor’s desk.
The Mississippi Energy Infrastructure Fund looks to establish funding to promote loans, grants, and other financial incentives for the development and promotion of energy projects in the Magnolia State.
Despite the Mississippi Development Authority requesting upwards of $100 million, State Senator Kevin Blackwell (R) said no money was allocated to the fund. The legislation states that the fund will consist of “money from any source designated for deposit into the fund.”
“Monies in the fund that are derived from the proceeds of bonds or provided by the Legislature may be used to reimburse reasonable actual and necessary costs incurred by the authority for the administration of the various grant, loan and financial incentive programs administered by the authority,” the bill reads. “An accounting of actual costs incurred for which reimbursement is sought shall be maintained by the authority. Reimbursement of reasonable actual and necessary costs shall not exceed three percent (3%) of the proceeds of bonds issued or the monies provided by the Legislature.”
According to Senate Energy Chairman Joel Carter (R), the measure was requested by the governor and the MDA.
The fund will be administered by MDA for projects that locate in Mississippi or expand within the state. The legislation has a three-year repealer, meaning lawmakers will review it during the 2029 session.
In early March, MDA told Magnolia Tribune that the fund is a needed tool as they continue their work to recruit investment in the state.
“The development fund will help build infrastructure for approved energy projects, which will improve long-term energy readiness at key industrial sites,” said Bill Cork, MDA executive director.
The bill states that electricity utilities are ineligible to directly receive funding from the program.
During earlier legislative hearings, Senator Carter said MDA would “like to keep this [bill] alive, keep it available.” However, the bill faced a tougher battle in the Senate Appropriations Committee. Many wondered what the purpose of the fund was, since the state already had an $18 million grant fund for site development.
- Article credit Daniel Tyson, Magnolia Tribune.
