GeorgiaSB 2062025-2026 Regular SessionSenate

"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

9 provisions identified: 3 benefits, 1 costs, 5 mixed.

Georgia tax break for gas-bond investors

Authority revenue bonds, transfers of those bonds, and income from them are exempt from all taxation within Georgia. This tax break applies to investors and people receiving transferred bonds. The law does not establish a federal tax exemption or state an investor's savings.

New gas authority for South Georgia

The law creates the South Georgia Energy Authority, based in Coffee County, to serve Ashburn, Douglas, Fitzgerald, Ocilla, and Tifton. It can build and operate gas storage, transmission, and distribution systems and supply city utilities. It can also sell gas directly to consumers, including where local governments do not provide gas. It can acquire land through purchase, lease, or eminent domain, subject to applicable law. Service contracts and leases can last up to 50 years; the law sets no project budget or customer prices.

Stronger repayment protections for gas investors

The Authority can pledge project or other revenues and set money aside for bond payments in its bond documents. All money received under the law must be held in trust and used only as the law allows. Bond owners retain rights to that money until it is used under the relevant bond documents. While bonds or notes remain unpaid, the law bars creating competing public entities that harm those owners' rights. The law also protects bondholder rights against changes that impair repayment powers and allows court enforcement.

Limits on claims against gas authority

The Authority has a city's protection from injury and negligence claims, to the extent permitted by law. Its officers, agents, and employees receive matching protection while doing Authority work. Contract lawsuits require a written obligation approved at a board meeting and entered in the board minutes. Creditors cannot use legal process to seize and sell Authority property. These rules limit options for people seeking payment or recovery from the Authority.

Gas authority sets charges, not taxes

The Authority can set, change, and collect rates and fees for the gas, services, and facilities it provides. It can use gas supply contracts and hedging agreements to manage price risk. For gas facilities and service, it receives city-style treatment and exemption from Georgia Public Service Commission regulation to the same extent as a city. The Authority cannot tax people or property, but it can still charge for services. The law sets no customer rates or guaranteed bill savings.

Gas authority can cover contractor losses

The Authority can agree to protect parties contracting with it or its agents against liability for injury or property damage. It can also cover losses and liability itself through self-insurance. These powers protect contracting parties but can put Authority money at risk. The law states no dollar limits.

Local board oversees the gas authority

The eight-member board includes five mayors or their designees and three at-large members chosen by those city representatives. At-large members need at least three years of economic-development experience and serve four-year terms. City representatives serve at their appointing authority's pleasure, with terms tied to the mayors' terms. Board members receive no pay but get reimbursed for actual, reasonable, and necessary work expenses. Travel, meal, and entertainment costs need advance approval at a public meeting.

Gas projects use revenue-backed borrowing

The Authority can issue revenue bonds to build or improve gas projects, buy gas supplies, or refinance existing debt. Bond payments come only from Authority revenues named in the bond resolution, not state or local government credit. Local governments can separately contract to pay Authority costs, including debt payments, in exchange for services or facilities. The board can set interest rates on bonds and other obligations without Georgia's stated revenue-bond or usury limits. The law sets no borrowing amount or interest rate.

Gas authority property avoids local taxes

Authority-owned property is public property held for government purposes. Its real and personal property is exempt from state and local taxes and special assessments, subject to general law. This lowers the Authority's tax costs and limits revenue available to affected taxing governments. The exemption does not change household tax rules or guarantee lower gas bills.

Sponsors & Cosponsors

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 • Other: 8

Senate vote • 3/3/2025

LOCAL CONSENT CALENDAR

Yes: 52 • No: 0 • Other: 4

Actions Timeline

Senate Date Signed by Governor
5/13/2025Senate
Act 245
5/13/2025
Effective Date
5/13/2025
Senate Sent to Governor
4/7/2025Senate
House Committee Favorably Reported
3/28/2025House
House Third Readers
3/28/2025House
House Passed/Adopted
3/28/2025House
House Second Readers
3/6/2025House
House First Readers
3/4/2025House
Senate Committee Favorably Reported
3/3/2025Senate
Senate Passed/Adopted
3/3/2025Senate
Senate Read and Referred
2/20/2025Senate
Senate Hopper
2/19/2025Senate

Bill Text

SB 206/AP* (v10)
PDF

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