SB68 Alabama 2022 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2022

Title

Wastewater treatment facilities, loan payback period by local governing bodies extended, Sec. 22-34-11 am'd.

Summary

SB68 lets local governments extend repayment terms for Alabama Water Pollution Control Authority loans used to fund wastewater facilities and sets how they must pay the debt.

What This Bill Does

It authorizes local governments to obtain loans from the Alabama Water Pollution Control Authority to finance wastewater treatment facility construction. It requires the local government to establish dedicated revenue sources (such as sewer charges, licenses, taxes, and special assessments) to repay the loan and operate the project. It sets repayment terms: begin within one year after construction is complete, and be fully repaid within 20 years (with possible extension under the Federal Clean Water Act not to exceed the project's design life); and it requires maintaining project accounts to GAAP standards. It also allows the Authority to pursue remedies if there is a default.

Who It Affects

• Local governing bodies (cities, towns, counties) that receive AWPC loans and must establish revenue sources and manage debt service for wastewater projects.
• Wastewater ratepayers and service users who may pay fees, licenses, taxes, or special assessments used to fund loan repayment and facility operation.

Key Provisions

• Authorizes local public bodies to fund AWPC loans for wastewater projects and to dedicate revenue for debt service and operation.
• Public bodies may: (1) pay debt service to the authority; (2) levy and remit revenues such as sewer fees, licenses, permits, taxes, and special assessments; (3) use those revenues to satisfy contractual obligations or pledge them as security; (4) ensure revenues equal 110% to 125% of the maximum annual debt service; (5) enter agreements and delegate duties to facilitate loan funding.
• If the borrower defaults, the authority may use remedies allowed by state law.
• Loan repayment begins within one year after project completion and ends within 20 years after completion, with possible extension under the Federal Clean Water Act, not exceeding the project’s design life.
• Recipients must maintain project accounts according to generally accepted government accounting standards.

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