Alabama Moves Forward on Energy Efficiency with New Act Sent to Governor’s Office

Senate Bill 220, or the Property Insurance and Energy Reduction Act of Alabama, provides property owners across the state a chance to implement projects related to energy efficiency and community resilience to storm-related events. The Act works through the issuance of bonds, notes, and other financial methods by counties, municipalities, or improvement districts who adopt the program. Financing will be made available through the assessment on the property tax bill for local property owners who wish to pursue energy efficiency improvements as a means of reducing consumption of electricity, natural gas, propane and other forms of energy. This program will also allow owners to make improvements that protect their property against weather related events. Qualifying improvements include wind resistant improvements, flood mitigation, and energy conservation and efficiency improvements. Energy conservation and efficiency improvements, include, but are not limited to, the following:

  • Air sealing
  • Installation of insulation
  • Installation of energy-efficient heating, cooling, or ventilation systems
  • Building modifications to increase the use of daylight
  • Replacement of windows
  • Installation of energy controls or energy efficient lighting systems
  • Installation of electric vehicle charging equipment
  • Installation of efficient lighting equipment
  • Other improvements that lead to demonstrable savings

Senate Bill 220 is currently on its way to the Governor’s office to be signed into law. Once official, local governments will need to adopt the program in order to make financing available to property owners in their regions.