§ 41-10-48.03 — Definitions

Alabama § 41-10-48.03

• Jurisdiction: Alabama
• Title 41: State Government
• Ch. 10: Authorities
• Art. 2E: Powering Growth Act

Text

For the purposes of this article, the following words shall have the following meanings:
(1) AUTHORITY. The State Industrial Development Authority.
(2) BONDS. Includes bonds, notes, or other evidence of indebtedness except as otherwise provided in this article.
(3) ELECTRIC PROVIDER. The same meaning as provided in Section 37-16-3 and shall also include the Tennessee Valley Authority and an authority as defined in Section 11-50A-1.
(4) ELIGIBLE PROJECT. a. Energy infrastructure projects and associated costs that:
1. Support a qualifying project approved by the Department of Commerce pursuant to Section 40-18-372;
2. Provide or enhance the energy infrastructure necessary for development of a site approved by the State Industrial Development Authority for grants pursuant to Article 2D of this chapter; or
3. Support the construction, enhancement, expansion, or upgrade of energy infrastructure projects in areas where the energy infrastructure is anticipated to facilitate future economic development as determined by the authority, with an emphasis on such development in rural areas.
b. This term shall not include funding for activities associated with the general maintenance, repair, or upkeep of energy infrastructure.
(5) ENERGY BANK. The Alabama Energy Infrastructure Bank.
(6) ENERGY FUND. The Alabama Energy Infrastructure Fund established under Section 41-10-48.04.
(7) ENERGY INFRASTRUCTURE PROJECTS. Generation infrastructure, transmission infrastructure, and projects addressing long-lead items.
(8) FINANCIAL ASSISTANCE. Includes, but is not limited to, contractual guarantees supporting eligible projects, credit enhancement, capital or debt reserves for bonds or debt instrument financing, interest rate subsidies, provision of letters of credit and credit instruments, provision of bond or other debt financing instrument security, reimbursable or other contractual arrangements, and other lawful forms of financing and methods of leveraging funds that are approved by the authority, and in the case of federal funds, as allowed by federal law.
(9) FINANCING AGREEMENT. Any agreement entered into between the authority and an electric provider pertaining to a loan or other financial assistance and other provisions as the authority may determine. The term includes, without limitation, a loan agreement, trust indenture, security agreement, reimbursement agreement, guarantee agreement, bond or note, ordinance or resolution, or similar instrument.
(10) LOAN. An obligation subject to repayment which is provided by the authority to an electric provider for all or a part of the costs of an eligible project. A loan may be disbursed in anticipation of reimbursement for or direct payment of costs of an eligible project or to refinance temporary financing used to pay costs of an eligible project.
(11) LOAN OBLIGATION. A bond, note, or other evidence of an obligation issued by an electric provider.
(12) LONG-LEAD ITEMS. Equipment, components, or materials necessary for energy infrastructure projects that require extended manufacturing, procurement, or delivery times of at least 24 months and with a total cost that exceeds two hundred fifty thousand dollars ($250,000), as may be approved by the authority.
(13) PERMITTED INVESTMENTS. Includes any of the following:
a. Certificates of deposit, savings accounts, deposit accounts, or money market deposits that are any of the following:
1. Secured as provided in Chapter 14A.
2. Fully insured by the FDIC.
3. Made with a bank whose unsecured, long-term obligations are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
b. Direct obligations of, or obligations the full and timely payment of which is guaranteed by, the United States of America, including unit investment trusts and mutual funds that invest solely in such obligations.
c. Bonds, debentures, notes, pass through securities, or other obligations issued or guaranteed by any federal agency or corporation which has been or may hereafter be created by or pursuant to an act of the Congress of the United States of America as an agency or instrumentality thereof if the obligations are either of the following:
1. Backed by the full faith and credit of the United States of America.
2. Rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by the rating agency.
d. Commercial paper that is rated not less than “P-1” by Moody’s Investors Service or “A-1+” by Standard and Poor’s at the time of purchase.
e. Money market funds rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
f. Bonds, warrants, notes, or other obligations issued by any state, county, or municipality which are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
g. Investment agreements, including, without limitation, guaranteed investment contracts, repurchase agreements, and forward purchase agreements, provided that all of the following are satisfied:
1. Any securities purchased or held pursuant to the agreement are otherwise permitted investments.
2. The counterparty’s long-term debt obligations are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
3. The securities, if purchased, are owned by the bank or a trustee for any of the bank’s obligations and are held by the bank, the trustee, or a third-party custodian acceptable to the bank or, if held as collateral, are held by the bank, the trustee, or a third-party custodian acceptable to the bank with a perfected first security interest in such collateral.
h. Investment or cash management agreements with a commercial bank whose senior long-term debt obligations are, at the time of the acquisition of any such investment or cash management agreement for the account of the bank, rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency, or with a commercial bank that is owned or controlled by a bank holding company whose senior long-term debt obligations, at the time of the acquisition of any such investment or cash management agreement for the account of the bank, are rated by at least one nationally recognized securities rating agency in one of the three highest rating categories assigned by that rating agency.
(14) REVENUES. When used with respect to the authority, any receipts, fees, income, or other payments received or to be received by the authority as a result of the authority’s activities under this article including, without limitation, receipts and other payments deposited with the authority and investment earnings on its funds and accounts.
(15) RURAL AREA. Any county within the state not having a population in excess of 150,000 inhabitants as determined by reference to the last federal decennial census.
(16) STRATEGIC DEVELOPMENT FUND. The Strategic Energy Infrastructure Development Fund established under Section 41-10-48.12.
(17) TRANSMISSION INFRASTRUCTURE. Facilities and systems responsible for transporting electricity from generation sources and for also processing, converting, and delivering such electricity into voltages required for the eligible project, including, but not limited to, high-voltage transmission lines, transformers, breakers, relays, substations, interconnection facilities, and associated equipment.

Legislative History

(Act 2025-394, §1.)