In 2013, Governor Phil Bryant signed landmark legislation into law positioning Mississippi as a leading destination for energy-related economic development. The Energy Works: Mississippi’s Energy Roadmap plan is a forward-thinking approach to energy policy that also positions Mississippi to accommodate a diverse mix of investment in the energy sector.
The Energy Infrastructure Revolving Loan Fund aids Mississippi communities in financing energy infrastructure such as gas lines and transmission lines for companies that invest more than $50 million in an economic development project. This law provides a new low-interest financing tool to help companies locate or expand in Mississippi.
While Mississippi boasts energy costs around 20 percent lower than the national average, HB 844 further cuts energy costs by exempting sales tax on energy used in manufacturing. Advanced manufacturing is a key target sector for Mississippi and comprises a large portion of the state’s economy.
The Sales Tax Reduction on Electricity for Enhanced Oil Recovery decreases the sales tax paid on electricity to 1.5 percent for oil and gas produced in the state using carbon dioxide as a method of enhanced oil recovery (EOR). Existing Mississippi EOR policy is considered by many to be the best in the nation, and HB 841 further positions the state to grow this industry.
The Rebate on Research and Development Costs defrays R & D costs of companies that operate in Mississippi and partner with a state institution of higher learning. Under this law, a corporation that collaborates with a state university for research and development purposes, including energy-related research, is eligible for a 25 percent rebate of the total research costs. This law helps companies take advantage of the wealth of energy expertise and resources available in Mississippi’s research institutions.
The Energy Sustainability and Development Act codifies MDA’s Energy and Natural Resource Division, which works to promote Mississippi as a leader in energy development, job creation, and research. In addition, the act mandates that state agencies work with MDA and the Department of Finance and Administration to develop energy management plans and report usage to lower costs and conserve energy.
This legislation reduces the severance tax to 1.30 percent for oil and gas extracted from horizontally drilled wells for a period of 30 months or until payout of the well. It applies to all qualified wells horizontally drilled between July 1, 2013, and June 30, 2018.
Enhanced Building Codes for State Owned Buildings requires that all major facility projects overseen by the Department of Finance and Administration for state-owned buildings must be constructed to the American Society of Heating, Refrigerating and Air-Conditioning Engineers 2010 standard. These standards help state-owned buildings become more energy efficient.
This legislation revises the energy code standard for commercial buildings to adhere to the 2010 energy code standard as created by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. Combining HB 1281 with HB 1266 helps the state become more energy efficient and makes Mississippi the first state in the Southeast to adopt this code standard for commercial buildings and public facilities.
The Mississippi Alternative Fuel School Bus and Municipal Motor Vehicle Revolving Loan Program provides public school districts and municipalities with loans to cover 100 percent of the incremental cost of purchasing alternative fuel vehicles and related systems or converting existing vehicles to accept alternative fuels, whether propane gas, compressed natural gas, or liquefied natural gas.