SB74 Alabama 2021 Session

Summary

Primary Sponsor

J.T. WaggonerSenator

Republican

Session

Regular Session 2021

Title

Shelby Co., privately owned sewer systems using public rights-of-way of public roads, required to be regulated and certified by PSC, const. amend.

Summary

In Shelby County, a local constitutional amendment would bring certain privately owned sewer systems that use public road rights‑of‑way under Public Service Commission regulation, subject to voter approval.

What This Bill Does

It applies only in Shelby County and would bring privately owned sewer systems that use public rights‑of‑way and discharge to Grade III or higher facilities under PSC certification and rate regulation. Until PSC sets new rates, those rates would follow the most recent rate control agreement or the utility's last published rate. Local governments can opt out of PSC regulation for affected customers through a rate control agreement, but if that agreement is invalid or terminated, PSC regulation is restored and there is a five‑year waiting period before opt‑out can be used again. If service spans more than one municipality, the opt‑out would go to the municipality with an existing rate control agreement as of January 1, 2021, subject to Shelby County Commission approval.

Who It Affects

• Private sewer system operators in Shelby County that use public rights‑of‑way and discharge to Grade III or higher facilities with residential or commercial customers billed a flat fee or based on water usage; these systems would be certified and regulated by the PSC.
• Residents and commercial customers served by those sewer systems; their rates would be set or regulated by the PSC (or by a rate control agreement if opt‑out applies).

Key Provisions

• Provision 1: Privately owned sewer systems in Shelby County that use public rights‑of‑way and discharge to Grade III or higher facilities become subject to PSC certification and rate regulation; implementation is determined by the PSC and rates are set under Title 37 Alabama.
• Provision 2: An opt‑out mechanism allows the county, a municipality, or a GUSC to avoid PSC regulation for affected customers if a rate control agreement is in place; if the agreement is invalid, terminated, or otherwise unenforceable, PSC jurisdiction is restored and there is a five‑year ban on re‑opting out; in multi‑municipality service areas, the opt‑out would vest with the municipality that has a rate control agreement as of Jan 1, 2021, subject to Shelby County Commission approval.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Shelby County