HB146 Alabama 2021 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Randy WoodRepresentative
Republican
Session: Regular Session 2021
Title: Wastewater treatment facilities, loan payback period by local governing bodies extended, Sec. 22-34-11 am'd.
Summary: HB146 allows local governments to extend the repayment period for wastewater facility loans beyond 20 years if allowed by federal law, as long as it stays within the project's design life.
What This Bill Does
It lets a local public body extend loan repayment beyond the current 20-year limit, when permitted by federal law, up to the project's design life. It also outlines how the public body can raise and pledge revenue (such as sewer fees, licenses, taxes, and special assessments) to repay the loan and cover operating costs. Repayment must start within one year after construction and be fully paid within 20 years, with possible extension under federal law, and the body must keep proper project accounts and follow default remedies.

Who It Affects
Local governing bodies (cities or counties) that receive loans from the Alabama Water Pollution Control Authority for wastewater facility construction, who could have longer repayment periods and use specified revenue sources to repay the loan.
Residents and businesses in the service area who may pay sewer/waste disposal fees, taxes, licenses, or special assessments that support loan repayment.

Key Provisions
Extends the loan repayment period beyond 20 years if consistent with federal law, but not exceeding the project's design life.
Public bodies may establish dedicated revenue sources to repay the loan and to cover operation, maintenance, and equipment replacement, including sewer/waste disposal fees, licenses/permits, taxes, special assessments, and other revenues.
Public bodies may pledge revenues or incur obligations to enable funding, including entering agreements or delegating duties as needed.
Revenues must be set to cover debt service at 110% to 125% of the maximum annual principal and interest due on the bonds funding the loan, as determined by the authority.
Repayment begins within one year after construction and must be completed no later than 20 years after completion, with possible extension under the Federal Clean Water Act up to the design life.
Public bodies must maintain project accounts under generally accepted accounting standards; the bill provides remedies for default; the act takes effect immediately after governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Wastewater Systems