MONTGOMERY – Governor Kay Ivey on Friday released the Rebuild Alabama bill. The bill will be filed in the Alabama Legislature by Representative Bill Poole ahead of the 2019 Regular Session, which begins on Tuesday.
Governor Ivey also issued the following statement:
“I look forward to working with members of the Alabama Legislature to address our critical infrastructure needs across Alabama. We have waited far too long to tackle this issue and Alabama lags far behind our neighboring states,” she said. “This is a hard issue, and we certainly have a lot of hard work ahead of us, but now is the time to Rebuild Alabama.”
The Rebuild Alabama Act Summary
6 cents, effective
October 1, 2019
2 cents, effective
October 1, 2020
2 cents, effective
October 1, 2021
Distribution of New Revenue
State – 66.67 percent
Counties – 25 percent
Municipalities – 8.33 percent
Use of New Revenue
ALDOT, counties, and municipalities cannot use the new revenue for: salaries or other compensation that are not direct project costs, purchase or maintenance of equipment, or building structures or buildings that are not installed as part of a road or bridge project.
ALDOT, counties, and municipalities can only use the new revenue for: maintenance or construction of roads and bridges, match funds for federal road or bridge projects, or the payment of any debt, subject to certain limits in the Act, associated with road or bridge projects.
All new revenue paid to ALDOT and separately to counties and municipalities shall be deposited into a separate fund. ALDOT’s
proceeds flow to the Rebuild Alabama Fund that will be audited annually and ALDOT will annually report to the Joint Transportation Committee itemized specific projects. county and municipality proceeds shall also be audited and reported by the Examiners of Public Accounts.
Beginning June 1, 2023, and every other year thereafter: The Department of Revenue will calculate the National Highway Construction Cost Index (NHCCI) issued by the US Federal Highway Association for the current year compared against the previous year. Can not increase or decrease by more than 1 cent.
$250 license and registration fee on elective vehicles (EVs), $125 on hybrid- electric vehicles (HEVs). Distribution of the first $150 on EVs, and first $75 on HEVs, shall be distributed 66.67 percent to the state, 25 percemt to the counties, and 8.33 perccent to municipalities. Remainder shall be deposited in the Rebuild Alabama Fund to support the Electric Transportation Infrastructure Grant Program until 2 percent of the total vehicle registrations in AL are EVs and HEVs.
Up to $10,200,000 annually will be distributed for the purpose to finance the improvement of the ship channel providing access to the facilities of the Alabama State Docks. Such funds to service bond in datedness not to exceed $150,000,000. Will terminate at the earlier of June1, 2035 or when the debt is repaid.
Total cost of bill to average Alabama driver:
$55 a year, $4.58 a month (Source: Alabama Transportation Institute based on 12,000 annual miles and 22MPG)