GeorgiaSB 2062025-2026 Regular SessionSenateWALLET

"South Georgia Energy Authority Act"; enact

Sponsored By: Carden Summers (Republican), Blake Tillery (Republican)

Signed by Governor

Intragovernmental CoordinationState and Local Governmental OperationsLocal Bill

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Bond financing and investor protections

The Authority can issue revenue bonds to pay project costs or refund older debt. The board sets bond interest rates, and bond income and transfers are exempt from Georgia tax. Bonds are paid only from Authority revenues, not the State’s credit. Funds are held in trust for bondholders, and bond documents can include strong remedies, like a receiver after default. The Authority and local governments may sign contracts to make payments that support operations and debt service.

New regional gas authority formed

The law creates the South Georgia Energy Authority as a public body. It serves five South Georgia cities and their gas service areas. An eight-member board runs it, with five city representatives and three members with economic development experience. Members are unpaid but can be reimbursed for approved expenses. Earlier laws that conflict with this Act are repealed.

Legal limits on lawsuits and venue

The Authority and its staff have the same tort immunity that cities have when doing public work. The Authority’s property cannot be seized or sold to pay a judgment. You can sue the Authority on a contract only if it is written, approved by the board in a meeting, and entered in the minutes. Lawsuits and bond or contract validation cases must be filed in Coffee County, and service is by serving an officer.

Sets its own natural gas rates

The Authority sets and changes the rates and fees it charges for its gas services. It can sign gas supply, prepayment, and hedging deals to manage fuel costs. It can pledge its revenues to back its bonds. For natural gas service, it is treated like a city and is exempt from the state Public Service Commission. Rate oversight comes from the Authority, not the PSC.

Broad powers to build gas projects

The Authority can plan, build, own, and run natural gas pipelines, storage, and related projects. It can buy or lease land and, when law allows, use eminent domain. It can sign contracts and leases with cities or counties for up to 50 years. It can hire staff, accept grants, and borrow money. These powers help expand gas service in the region.

No taxing power; property tax-exempt

The Authority cannot levy or collect any tax on people or property. Its offices and project property are treated as public and are exempt from state and local taxes, as general law allows. This lowers the Authority’s costs but can reduce the local tax base where projects sit.

Sponsors & Cosponsors

Sponsors

  • Carden Summers

    Republican • Senate

  • Blake Tillery

    Republican • Senate

Cosponsors

  • Noel Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 212 • No: 0

House vote 3/28/2025

Local Calendar

Yes: 160 • No: 0

Senate vote 3/3/2025

LOCAL CONSENT CALENDAR

Yes: 52 • No: 0

Actions Timeline

  1. Senate Date Signed by Governor

    5/13/2025Senate
  2. Act 245

    5/13/2025
  3. Effective Date

    5/13/2025
  4. Senate Sent to Governor

    4/7/2025Senate
  5. House Committee Favorably Reported

    3/28/2025House
  6. House Third Readers

    3/28/2025House
  7. House Passed/Adopted

    3/28/2025House
  8. House Second Readers

    3/6/2025House
  9. House First Readers

    3/4/2025House
  10. Senate Committee Favorably Reported

    3/3/2025Senate
  11. Senate Passed/Adopted

    3/3/2025Senate
  12. Senate Read and Referred

    2/20/2025Senate
  13. Senate Hopper

    2/19/2025Senate

Bill Text

  • SB 206/AP* (v10)

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