Mississippi Energy Infrastructure Fund; create., the official text

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Public Utilities; Ways and Means

By: Representatives Powell, Hale

House Bill 1393

(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI ENERGY INFRASTRUCTURE FUND;
TO DEFINE TERMS; TO PROVIDE FOR USES OF THE FUNDS; TO AUTHORIZE THE MISSISSIPPI
DEVELOPMENT AUTHORITY TO MAKE GRANTS, LOANS OR PROVIDE ANY OTHER FINANCIAL
ASSISTANCE; TO REQUIRE ANY LOCAL ENTITY DESIRING A GRANT, LOAN OR OTHER
FINANCIAL ASSISTANCE TO SUBMIT AN APPLICATION; TO PRESCRIBE APPLICATION
REQUIREMENTS; TO REQUIRE THE AUTHORITY TO DETERMINE WHETHER THE PROJECT MEETS
THE DEFINITION OF AN APPROVED PROJECT AND WHETHER TO PROVIDE THE ASSISTANCE
REQUESTED IN THE FORM OF A GRANT, LOAN OR OTHER FINANCIAL ASSISTANCE; TO GRANT
THE MISSISSIPPI DEVELOPMENT AUTHORITY SOLE DISCRETION IN PROVIDING GRANTS,
LOANS OR PROVIDING OTHER FINANCIAL ASSISTANCE; TO PROHIBIT AN ELECTRIC UTILITY
PROVIDER FROM BEING CONSIDERED ELIGIBLE TO BE A DIRECT RECIPIENT OF FUNDING; TO
REQUIRE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO PROMULGATE RULES AND
REGULATIONS; TO PROVIDE THAT THIS ACT SHALL BE REPEALED ON JULY 1, 2029; AND
FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF MISSISSIPPI:

SECTION 1.
(1)  As used in this section, the following terms have the meanings ascribed
herein unless the context clearly requires otherwise:

(a)  "Approved
project" means any project that:

(i)  Locates or
expands in this state with significant regional impact as determined by the
authority; or

(ii)  Will improve
the marketability of potential economic development sites or facilitates a
potential economic development project by obtaining equipment and facilities
related to the approved project as determined by the authority.

(b)
"Authority" means the Mississippi Development Authority.

(c)  "Facilities
related to the approved project" means and includes any of the following,
as they may pertain to the approved project:

(i)  Priority
production placement agreements with key manufacturers of long lead-time
electrical equipment, including, but not limited to, transformers, substations,
switchgear, and specialized circuit breakers for an approved project;

(ii)
Notwithstanding subsection (5) of this section, site-specific infrastructure
development, including, but not limited to, the extension of transmission lines
and pipelines; enhancements or expansions to substation capacity; the
acquisition of rights-of-way for key transmission and pipeline infrastructure
located near key industrial or commercial sites, as identified by the authority
for development; and transformers, breakers, and other equipment and facilities
necessary for processing, converting, and delivering such electricity into
voltages necessary or useful for an approved project; and

(iii)  Any other
energy related infrastructure and equipment for an approved project as
determined by the authority.

(d)
"Project" means any industrial, commercial, research and development,
warehousing, distribution, transportation, processing, mining, refining, data
center, United States government or tourism enterprise together with all
equipment and real property required for construction, maintenance and operation
of the enterprise that is approved by the authority.

(e)  "Local
entity" means any county, municipality or public or private nonprofit
local economic development entity, including, but not limited to, local
authorities, commissions or other entities created by local and private
legislation or pursuant to Section 19-5-99, Mississippi Code of 1972.

(2)  (a)  There is created a
special fund in the State Treasury to be known as the "Mississippi Energy
Infrastructure Fund" which shall consist of money from any source
designated for deposit into the fund.  Unexpended amounts remaining in the fund
at the end of a fiscal year shall not lapse into the State General Fund, and
any interest earned on amounts in the fund shall be deposited to the credit of
the fund.  Money in the fund shall be disbursed by the authority for the
purposes authorized in subsection (3) of this section.

(b)  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.  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.  Reimbursements under this subsection shall
satisfy any applicable federal tax law requirements.

(3)  The authority shall
establish a program to make grants, loans or provide any other financial
assistance as determined by the authority from the Mississippi Energy
Infrastructure Fund to local entities to construct, equip an approved project
or otherwise provide facilities related to the approved project. Local entities
are authorized to accept grants and enter into loans or accept other financial
assistance as determined by the authority authorized under the program, and to
sell, lease, donate or otherwise dispose of an approved project, any equipment
or property related to the approved project, and any facilities related to the
approved project in whole or in part as determined by the authority.

(4)  (a)  Any local entity
desiring a grant, loan or other financial assistance under this section shall
submit an application to the authority which shall include, at a minimum:

(i)  Evidence that
the project meets the definition of an approved project;

(ii)  A description,
including the cost, of the requested assistance;

(iii)  A
description of the purpose for which the assistance is requested; and

(iv)  Any other
information required by the authority.

(b)  The authority
shall require that binding commitments be entered into requiring that:

(i)  The minimum
requirements of this section and such other requirements as the authority
considers proper shall be met; and

(ii)  If such
requirements are not met, the authority may require all or a portion of the funds
provided by this section to be repaid.

(c)  Upon receipt of
the application from a local entity for a grant, loan or other financial
assistance under this section, the authority shall determine whether the
project meets the definition of an approved project and determine whether to
provide the assistance requested in the form of a grant, loan or other
financial assistance.

(d)  The authority
shall have sole discretion in providing grants, loans or providing other
financial assistance under this section.  The terms of a grant, loan or other
financial assistance provided under this section and the manner of repayment of
any grant, loan or other financial assistance shall be within the discretion of
the authority.  Repayments of grants, loans or other financial assistance made
under this section shall be deposited to the credit of the Mississippi Energy
Infrastructure Fund.

(5)  An electric utility
provider shall not be eligible to be a direct recipient of funding from the Mississippi
Energy Infrastructure Fund.

(6)  The authority shall
promulgate rules and regulations, in accordance with the Mississippi
Administrative Procedures Law, for the implementation of this section.

(7)  This section shall be
repealed on July 1, 2029.

SECTION 2.  This act
shall take effect and be in force from and after July 1, 2026.