SB 155

SB155 ENROLLED
1 SB155
2 I3I3T66-2
3 By Senators Woods, Allen, Waggoner, Roberts, Kitchens,
4 Shelnutt, Sessions, Smitherman, Singleton, Elliott,
5 Livingston, Coleman-Madison, Williams, Figures, Coleman
6 RFD: Finance and Taxation General Fund
7 First Read: 14-Jan-26
  Page 0
  SB155 Enrolled
1 Enrolled, An Act,
2
3Relating to economic and workforce development; to
4 establish the Coal-Impacted Communities Economic and Workforce
5 Development Grant Program to assist local development
6 organizations with economic and workforce development
7 initiatives in coal-impacted communities; to provide for the
8 purposes for which the grant funds may be used; to establish
9 the Coal-Impacted Communities Economic and Workforce
10 Development Grant Program Advisory Committee to review
11 applications and make recommendations; to establish the
12 Renewing Coal-Impacted Communities Act Fund in the State
13 Treasury; to provide for the distribution of revenues received
14 from rent and royalties derived from federal coal lease sales
15 in the state beginning after January 1, 2027; and to provide
16 an effective date.
17 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
18Section 1. This act shall be known and may be cited as
19 the Renewing Coal-Impacted Communities Act.
20Section 2. The Legislature finds and declares all the
21 following:
22(1) The Federal Lands Program regulates coal mining and
23 reclamation operations on federal lands pursuant to the
24 Surface Mining Control and Reclamation Act (SMCRA) and the
25 Mineral Leasing Act of 1920 (MLA).
26(2) The United States Department of the Interior Office
27 of Natural Resources Revenue (ONRR) collects royalties and
28 other revenues from coal production on federal lands and pays
  Page 1
  SB155 Enrolled
29 a portion of this revenue to the state where the mineral was
30 extracted.
31(3) The primary intent of the royalties is to
32 compensate states that host federal mineral extraction
33 activities, including the communities most impacted by mineral
34 extraction. Costs to these communities, include, but are not
35 limited to, infrastructure, increased demand on public
36 services, and workforce-related costs.
37(4) The McDuffie Coal Terminal at the Port of Mobile
38 serves as the primary export terminal for coal extracted from
39 federal lands in Alabama, handling the majority of coal
40 shipped from mining operations in coal-impacted communities.
41 The movement of coal through the McDuffie Coal Terminal at the
42 Port of Mobile generates significant economic activity,
43 creates jobs in transportation and logistics sectors, and
44 contributes substantial tax revenue to state and local
45 governments. Infrastructure improvements and maintenance at
46 the Port of Mobile are essential to maintaining the
47 competitiveness of Alabama's coal industry, ensuring efficient
48 market access for coal production, and supporting the broader
49 economic ecosystem dependent on coal mining activities.
50(5) It is the intent of the Legislature, by the passage
51 of this act, to require that all federal funds made available
52 to the state through 30 U.S.C. § 191(a), be expended within
53 coal-impacted communities, the Port of Mobile, and the State
54 General Fund.
55Section 3. The following words and phrases, whenever
56 used in this act, have the following meanings:
  Page 2
  SB155 Enrolled
57(1) COAL-IMPACTED COMMUNITIES. Areas or jurisdictions
58 of the state that meet one or more of the following criteria:
59a. Areas where coal is currently being mined on federal
60 lands.
61b. Areas where a significant population of the
62 workforce is engaged in the mining of coal on federal lands.
63c. Areas that have experienced substantial economic
64 impact due to the decline or cessation of coal mining
65 operations on federal lands.
66d. Jurisdictions where coal mining on federal lands has
67 historically been a major source of employment or tax revenue.
68e. For purposes of this definition, Fayette County,
69 Jefferson County, Tuscaloosa County, and Walker County are
70 designated as coal-impacted communities.
71(2) DEPARTMENT. The Alabama Department of Workforce.
72(3) FUND. The fund created in Section 6 of this act.
73(4) LOCAL DEVELOPMENT ORGANIZATION. Any organization
74 that is determined by the board to meet both of the following
75 criteria:
76a. The organization is an Alabama entity not operating
77 for profit, including, but not limited to, a municipality,
78 county, industrial development board, industrial development
79 authority, chamber of commerce, institution of higher
80 education, or some other foundation or nonprofit organization
81 charged with improving a community or region of the state.
82b. The organization has a record of supporting or
83 otherwise participating in economic or workforce development
84 in some parts of the state.
  Page 3
  SB155 Enrolled
85(5) PERSON. One or more individuals, corporations,
86 partnerships, associations, legal representatives, mutual
87 companies, joint-stock companies, trusts, unincorporated
88 organizations, trustees, bankruptcy, receivers, and
89 fiduciaries.
90(6) SECRETARY. The Secretary of the Department of
91 Workforce.
92Section 4. (a) The Coal-Impacted Communities Economic
93 and Workforce Development Grant Program is established for the
94 purpose of awarding grants to eligible local development
95 organizations for regional economic and workforce development
96 initiatives in coal-impacted communities in the state.
97(b) The Secretary of the Department of Workforce shall
98 implement and administer the grant program.
99(c) Grant funds awarded under this program may be used
100 to support coal-impacted communities through:
101(1) Workforce development and training programs;
102(2) Quality of place initiatives that enhance community
103 livability and economic competitiveness;
104(3) Public works, infrastructure, and public services;
105(4) Capital improvement that support community
106 resilience and economic development; and
107(5) Operations of the Alabama Surface Mining
108 Commission.
109Section 5. (a) To ensure that coal-impacted communities
110 have meaningful input into the expenditure of grant funds, a
111 Coal-Impacted Communities Economic and Workforce Development
112 Grant Program Advisory Committee is established to review
  Page 4
  SB155 Enrolled
113 applications and make recommendations to the secretary. Each
114 advisory committee member shall be appointed to a four-year
115 term and shall serve at the pleasure of their respective
116 appointing authority.     The advisory committee shall meet at
117 least annually. Additional meetings may be called at the
118 discretion of the secretary.
119(b) The committee shall consist of the following
120 members:
121(1) One member appointed by the Governor from a
122 coal-impacted community.
123(2) One member appointed by the Lieutenant Governor
124 from a coal-impacted community.
125(3) One member appointed by the President Pro Tempore
126 of the Senate from a coal-impacted community.
127(4) One member appointed by the Speaker of the House of
128 Representatives from a coal-impacted community.
129(5) One member appointed by the Fayette County
130 Legislative Delegation.
131(6) One member appointed by the Jefferson County
132 Legislative Delegation.
133(7) One member appointed by the Tuscaloosa County
134 Legislative Delegation.
135(8) One member appointed by the Walker County
136 Legislative Delegation.
137(9) The President of the Alabama Mining Association.
138(c) The appointing authorities shall coordinate their
139 appointments to assure the advisory board membership is
140 inclusive and reflects the racial, gender, geographic, urban,
  Page 5
  SB155 Enrolled
141 rural, and economic diversity of the state.
142Section 6. (a) The Renewing Coal-Impacted Communities
143 Act Fund is created within the State Treasury to provide grant
144 funds to local development organizations for the purpose of
145 improving economic and workforce development in coal-impacted
146 communities. The fund shall be administered by the department
147 and shall be comprised of revenues received from rent and
148 royalties derived from federal coal lease sales in the state
149 beginning after January 1, 2027, or allocated by the
150 Legislature from other funds for the purposes of this act.
151 Amounts deposited into the fund shall be budgeted and allotted
152 in accordance with Sections 41-4-80 through 41-4-96 and
153 Sections 41-19-1 through 41-19-12, Code of Alabama 1975. All
154 funds received into the fund shall remain in the fund and not
155 revert or be expended for any other purposes other than those
156 set out in this act.
157(b) The department may retain up to 10 percent of the
158 total funds allocated for the Coal-Impacted Communities
159 Economic and Workforce Development Grant Program for actual
160 expenses relating to administering the program and conducting
161 financial audits.   Members of the board shall serve without
162 compensation but may be reimbursed for expenses incurred for
163 the performance of official board duties, including expenses
164 incurred in attending meetings or otherwise conducting board
165 business. Reimbursement shall be made in accordance with the
166 per diem and travel expense rates authorized for state
167 officers and employees under applicable state law and any
168 rules or policies adopted pursuant thereto.
  Page 6
  SB155 Enrolled
169Section 7. The Secretary of the Department of Workforce
170 shall adopt rules as necessary to implement and administer the
171 provisions of this act.
172Section 8. Notwithstanding any other law to the
173 contrary, beginning January 1, 2027 and ending December 31,
174 2030, the revenues derived from the payment of rent and
175 royalties of federal coal lease sales occurring in the state
176 after January 1, 2027 shall be distributed annually as
177 follows:
178(1) The first one million dollars ($1,000,000) shall be
179 deposited in the State General Fund.
180(2) The next five-hundred thousand dollars ($500,000)
181 shall be distributed to the Alabama State Port Authority for
182 the McDuffie Coal Terminal at the Port of Mobile.
183(3) The next two-hundred fifty thousand dollars
184 ($250,000) shall be distributed to the Alabama Surface Mining
185 Commission.
186(4) The remaining revenues shall be deposited in the
187 Renewing Coal-Impacted Communities Act Fund and shall be used
188 by the department to award grants to eligible local
189 development organizations pursuant to the provisions of this
190 act.
191Section 9. This act shall become effective on October
192 1, 2026.
  Page 7
  SB155 Enrolled
193
194
195
196
197
198
199________________________________________________
200President and Presiding Officer of the Senate
201
202
203
204________________________________________________
205Speaker of the House of Representatives
206
207
208 SB155
209 Senate 10-Feb-26
210 I hereby certify that the within Act originated in and passed
211 the Senate, as amended.
212
213Patrick Harris,
214Secretary.
215
216
217
218
219 House of Representatives
220 Amended and passed: 24-Feb-26
221
222
223
224
225 Senate concurred in House amendment 25-Feb-26
226
227
228
229
230 By: Senator Woods
  Page 8