HB34 Alabama 2022 Session

Updated Feb 15, 2022

Summary

Primary Sponsor: Randy WoodRepresentative
Republican
Session: Regular Session 2022
Title: Wastewater treatment facilities, loan payback period by local governing bodies extended, Sec. 22-34-11 am'd.
Summary: HB34 would let local governments extend the repayment period for Alabama Water Pollution Control Authority wastewater facility loans beyond 20 years, up to the project’s design life, when allowed by federal law.
What This Bill Does
It amends the loan terms to allow repayment extensions beyond 20 years if permitted by the Federal Clean Water Act, as long as the extension does not exceed the project’s design life. The local public body must establish dedicated revenue sources to repay the loan and cover operation, maintenance, and equipment replacement costs, and may raise funds through sewer charges, licenses, taxes, special assessments, or other revenue. The public body can commit to debt service, pledge revenues, and enter agreements to enable loan funding, and the authority has remedies if there is a default.

Who It Affects
Local governing bodies (cities/counties) that receive loans from the Alabama Water Pollution Control Authority for wastewater facility construction, who could extend loan repayment beyond 20 years up to design life.
Residents or utility customers served by the wastewater system, who may see changes in rates, fees, or assessments as funding sources are used to repay extended loan debt and cover ongoing costs.

Key Provisions
Amends Section 22-34-11 to extend the loan repayment period for authority-funded wastewater projects beyond 20 years, alignment with federal law, and not exceeding the project's design life.
Requires the public body to establish a dedicated revenue source to repay loan funds and cover operation, maintenance, and equipment replacement costs.
Authorizes the public body to levy or collect sewer/waste disposal charges, licenses, permits, taxes, special assessments, or other revenue to pay the authority and fund the project.
Permits the public body to undertake agreements and pledge revenues to ensure loan repayment, including potential general obligation pledges.
Maintains that repayment begins within one year after project completion and is fully repaid within 20 years after completion, with possible extension under federal law up to the design life.

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