HB 531 would exempt contractors working on public highway, road, or bridge construction projects from paying state taxes on natural gas and liquefied petroleum gas (LPG) used during construction. Specifically, it removes utility gross receipts tax, utility service use tax, and state sales and use tax on these fuels for licensed contractors or subcontractors under government contracts. Counties and municipalities may also adopt similar local tax exemptions for the same purpose. The bill, set to take effect on September 1, 2026, applies only to projects funded by governmental entities as defined in Alabama law.
HB 176 requires Alabama's Environmental Management Department to adopt rules by January 1, 2027, enabling the beneficial reuse of foundry sand - waste material from metal casting - instead of landfilling. The rules would allow foundry sand to be used as raw material in asphalt/cement, road subbase, landfill drainage, flood control sandbags, and other applications that substitute for virgin materials. This directly affects foundries producing the sand and industries using construction materials, promoting waste reduction and resource efficiency under state environmental regulations. The bill mandates specific reuse pathways while maintaining existing regulatory oversight for solid waste management.
HB 135 creates the Alabama Port Infrastructure Grant Program under the Alabama Department of Economic and Community Affairs to fund improvements at publicly owned inland ports and transportation hubs connecting different shipping methods (like rail and barge). It allocates $5 million annually starting in 2026 for competitive grants, requiring 20% local matching funds and limiting state funding to 50% of project costs. The program prioritizes projects that reduce highway congestion, boost port tonnage, and enhance regional competitiveness, while explicitly excluding routine maintenance, administrative costs, and new port construction without prior feasibility studies. Funding must directly support capital improvements, dredging near existing ports, or infrastructure development outside normal operating budgets.
SB 226 allocates supplemental funding for Alabama's fiscal year ending September 30, 2026, primarily providing $387.5 million from the Public Road and Bridge Fund and $200 million from the Rebuild Alabama Fund to the Alabama Department of Transportation for highway and bridge projects. It also allocates $50 million for energy infrastructure development through the Strategic Energy Infrastructure Development Fund and $11 million to the Unified Judicial System for court operations. Additional funds support Medicaid, the Alabama Alcoholic Beverage Control Board, and geological surveys. The bill amends the main transportation appropriation to include the Alabama Highway Authority in debt service payments for highway bonds.
HB 133 revises how Lamar County distributes revenue from its one-cent privilege license tax. The bill amends an existing law to clarify that the state may charge up to 5% of collected taxes for administrative services, and it changes the distribution: half of the tax revenue must go to Lamar County's public schools, while the other half is allocated for road construction and maintenance (with one-fourth per commissioner's district). This affects Lamar County taxpayers and directly impacts the county's school funding and infrastructure budgets. The changes update outdated language in the original 1977 law but do not alter the tax rate or overall revenue amount.
