SB 206: "South Georgia Energy Authority Act"; enact

Right now the cities of Ashburn, Douglas, Fitzgerald, Ocilla, and Tifton do not have a shared regional entity to secure and distribute natural gas supplies. This bill creates the South Georgia Energy Authority, a public corporation and political subdivision of the state, to acquire gas supplies and build or manage gas transmission and distribution projects that serve those five cities' natural gas utilities and, in some cases, customers directly. The Authority would be governed by an eight-member board: the mayor or a mayoral appointee from each of the five cities, plus three members with economic development experience chosen by the other five. It can borrow money, issue revenue bonds under Georgia's Revenue Bond Law, own property tax-free, set its own rates and fees, and is treated like a municipality for tort immunity and exemption from Georgia Public Service Commission regulation. The Authority cannot tax anyone and its debts are not backed by the state or any city's credit. The law takes effect upon passage, with its office based in Coffee County.

• Creates the South Georgia Energy Authority as a public corporation and political subdivision of Georgia, separate from any city or county government.
• Authorizes the Authority to acquire, build, and operate natural gas transmission, storage, and distribution projects serving Ashburn, Douglas, Fitzgerald, Ocilla, and Tifton.
• Lets the Authority issue revenue bonds to pay project costs, with bonds repaid only from Authority revenue, not taxpayer money or city credit.
• Grants the Authority power to set its own rates, fees, and charges for gas service and exempts it from Georgia Public Service Commission regulation, treating it like a municipality.
• Exempts Authority property and bond income from state and local taxes and gives the Authority the same tort immunity as a municipality.
• Denies the Authority any power to levy or collect taxes and sets Coffee County as the venue for lawsuits against it.

The five participating cities (Ashburn, Douglas, Fitzgerald, Ocilla, and Tifton) and their natural gas utilities, the mayors and appointees who would sit on the new board, bondholders who purchase Authority revenue bonds, and residents or businesses who receive natural gas service through the Authority's projects.

A new regional body would be empowered to buy gas supplies, build pipelines and storage, borrow money through bonds, and set gas rates for the five cities involved, potentially changing how natural gas is sourced and priced in that part of the state without directly taxing residents or obligating city or state credit for its debts.

• Section 2 establishes the Authority as a public body corporate and politic, an instrumentality of the state but not a state agency, with perpetual existence.
• Section 5 sets the eight-member board structure: five mayors or their appointees plus three members with at least three years of economic development experience.
• Section 6 lists general powers, including acquiring property (by purchase or condemnation), contracting for up to 50 years, and managing gas projects.
• Section 7 and Section 8 authorize the Authority to issue revenue bonds under the Revenue Bond Law to pay project costs, effective upon adoption of a board resolution.
• Section 9 makes clear that Authority bonds are not backed by the state or any city and do not create a public debt obligation.
• Section 11 exempts revenue bonds and their income from state taxation and Georgia usury interest-rate limits.
• Section 17 sets Coffee County as the Authority's principal office and the venue for lawsuits and bond validation actions.
• Section 18 exempts the Authority from Georgia Public Service Commission regulation and lets it set its own rates, fees, and charges.

1. 2025-05-13Effective Date 2025-05-13
2. 2025-05-13Act 245
3. 2025-05-13Senate Date Signed by Governor (Senado)
4. 2025-04-07Senate Sent to Governor (Senado)
5. 2025-03-28House Passed/Adopted (Cámara de Representantes)
6. 2025-03-28House Third Readers (Cámara de Representantes)
7. 2025-03-28House Committee Favorably Reported (Cámara de Representantes)
8. 2025-03-06House Second Readers (Cámara de Representantes)

• Carden Summers (R, SD-013)Patrocinador principal
• Blake Tillery (R, SD-019)
• Noel Williams (R, HD-148)

1. AprobadaVotación: Senado3 de marzo de 2025

   52 a favor, 0 en contra (4 sin votar, 0 ausentes)

   Local Consent Calendar: Senate Vote #114

2. AprobadaVotación: Cámara de Representantes28 de marzo de 2025

   160 a favor, 0 en contra (8 sin votar, 12 ausentes)

   Local Calendar : House Vote #332

• natural gas utilities
• public authorities
• south Georgia energy
• municipal bonds
• utility regulation