Alabama Gov. Kay Ivey signed into law a $20 million investment to the Alabama State Port Authority for upgrades to McDuffie Coal Terminal at the Port of Mobile, in addition to a bill that expands the tax credits businesses receive when they use the public ports in Alabama.

“This investment in the port is truly an investment in the entire state,” Port Authority CEO John Driscoll said in a news release. “The infusion of cash means we will be able to do more, faster to ensure the Alabama Port Authority is the most modern and efficient port.”

The $20 million was part of the $3 billion General Fund budget that Ivey signed into law. Previously, $25 million in funds from the Education Trust Fund (ETF) surplus was allocated to the port for the coal terminal, but that was stripped from the bill after outcry about ETF funds being used for non-educational purposes.

The funds will be used to upgrade the coal terminal from an import terminal to an export terminal, as reliance on thermal coal in the state wanes and demand for metallurgical (met) coal, mined in the Tuscaloosa region, increases worldwide. Met coal is a key ingredient in the manufacturing of steel.

In addition, Ivey signed into law House Bill 293, which expands the credits that Alabama businesses can receive for using the ports in Alabama for their cargo needs. The bill changes the calculation of the incentive to factor in the net increase in the cargo volume moving through the port. The more a company increases the cargo volume, the bigger credit they can receive per cargo unit, port officials said. The new incentive law will take effect in 2024.