Will energy fuel Mississippi’s economic growth? Mississippi Marketplace

By Katherine Lin | Originally published by Mississippi Today

Energy has been a theme for this legislative session’s economic development bills passed by both bodies,  in line with Gov. Tate Reeves’ plans to make Mississippi a leader in energy production.  

Last year, Gov. Tate Reeves announced an initiative called “Mississippi’s Power Play” in an effort to “attract more private sector investment and create more high-paying jobs for Mississippians.”  

“To continue Mississippi’s record-breaking economic growth, we must make required investments to drive energy sector growth in our state,” Reeves wrote in an announcement. 

Some measures passed by lawmakers this session:

• HB 1393: Creates the Mississippi Energy Infrastructure Fund under the Mississippi Development Authority. The fund will provide money to local governments to build energy projects, such as transmission lines and substation improvements. Lawmakers did not put any money in the fund this session, but supporters hope they will next year.
• SB 3116: added battery storage facility tax incentives to the existing tax incentives for renewable energy sources. The exemption gives projects a 10-year exemption of 50% of property taxes for projects over $100 million. There are already some facilities in Mississippi, and Entergy recently announced it is building new storage centers in Louisiana. 
• HB 1633: updated site selection grants to include electric and utility upgrades. The matching fund grants go to local governments and economic development groups.
• The Legislature has given MDA $43 million for site development grants, and $20 million is set aside for energy and utility improvements.

Marshall County battery plant laying off workers

Amplify Cell Technologies is laying off workers at its Marshall County electric vehicle battery manufacturing plant. When the project was announced in 2024, it was expected to invest $1.9 billion and create 2,000 jobs. At the time, it was the largest workforce commitment in the state’s history.

The company has not said how many people will be laid off.

The Legislature approved borrowing up to $482 million to loan the project through the Mississippi Major Economic Impact Act. MDA has a memorandum of understanding for all Major Economic Impact projects with goals and obligations, as well as clawback provisions to recoup the money if the company doesn’t meet its goals on time.

MDA said that the company “is in compliance with its contractual obligations” right now, and it would take action if the company does not hold up its end of the deal. The company committed to starting operations at the facility and creating 2,000 jobs by 2031.

“Amplify Cell has communicated to MDA its continued commitment to the project and to the successful fulfillment of its long‑term development plans in Mississippi,” MDA said in a statement. 

Mississippi alcohol shortages continue

There was momentary hope that the Legislature would be able to act to alleviate the alcohol shortage stemming from problems at the state’s Alcoholic Beverage Control warehouse. However, a bill proposed to address the crisis died in conference when Senate and House negotiators could not agree on a proposal, said Rep. Hank Zuber.

The bill would have allowed alcohol permit holders to purchase directly from any supplier in the state or country. However, some package shop owners have expressed skepticism that the bill would have had any impact, citing arduous paperwork, complicated logistics and additional costs.  

As of March 29, the warehouse had a backlog of around 170,000 cases, down from a high of over 200,000 in the middle of February. At a February committee hearing, the commissioner of the Department of Revenue said that if the warehouse could work through half its backlog by March, it would clear the backlog by May.

In case you missed it:

The University of Mississippi Medical Center’s revenue came in 20% below budget in February. Officials said this was a result of a Feb. 19 cyberattack that forced the state’s largest public medical system to cancel appointments and reschedule surgeries for nine days. UMMC said it expects to have a clearer picture of the cyberattack’s impact at the end of the fiscal year.

New investments:

• International Paper announced it will be building a new $225-million facility in Brandon, close to its existing Richland plant. 
• DG Foods is investing $1.19 million to expand its operations in Hazelhurst. The expansion of the poultry processing plant will create 32 new jobs. Poultry and eggs are the largest agricultural commodities in Mississippi.
• A $105 million mixed use development project recently by AnderCorp LLC and Bellamare Development broke ground in the Gulfport Town Center. Officials say that the project will be transformational for the city’s downtown.

This article was originally published by Mississippi Today and is republished here under a Creative Commons license.

Source: Original Article