AN ACT ALLOWING MUNICIPALITIES TO ISSUE BONDS FOR ENERGY GRID MODERNIZATION PROJECTS.

SB 1040 allows cities and towns (municipalities) to issue bonds specifically to fund modernization of their local energy grids. The bill amends Chapter 109 of state law to explicitly permit this bond issuance for grid projects, such as upgrading infrastructure or improving reliability. This provides municipalities with a new financial tool to invest in energy system upgrades without requiring separate legislative approval for each project. The policy change directly affects local governments seeking to modernize their electricity infrastructure through borrowing.