The city of Birmingham, Alabama is on the brink of losing a significant stake in the governance of the state’s largest water utility following the enactment of a new bill signed into law by the governor. This move comes amid ongoing legal proceedings contesting the change as racially discriminatory.
The legislation transfers authority from Birmingham city officials—who previously appointed the majority of the nine-member board—to the governor, lieutenant governor, and officials from four neighboring counties that fall under the utility’s jurisdiction. As a result, the number of board members will be reduced to seven. This board is responsible for approving rate increases and overseeing infrastructure projects catering to 770,000 customers.
The Alabama Senate voted unanimously in favor of the bill, while the House of Representatives saw a partisan division in its vote.
“This utility board’s governance is crucial for all those it serves. The overwhelming legislative support for SB330 reflects its importance, and I am pleased to have signed it into law,” stated Republican Governor Kay Ivey.
Supporters of the new law cite concerns over rising rates, aging infrastructure, and recent controversies surrounding the utility board. They argue that redistributing power could prevent crises similar to what occurred in places like Jackson, Mississippi, or Detroit, Michigan.
Conversely, critics assert that altering the board’s structure won’t sufficiently address the utility’s existing issues. The Birmingham Water Works Board serves five counties, with Birmingham accounting for over 40% of its customers, and Jefferson County encompassing 91%. The new setup is designed to amplify the influence of neighboring areas, which contribute to the utility’s water supply, although they represent a smaller customer base.
Birmingham Mayor Randall Woodfin and city council members have responded with a federal lawsuit, accusing Governor Ivey of endorsing legislation that allegedly discriminates based on race. They argue it unjustly bolsters the voice of majority-white suburbs at the expense of Birmingham, a predominantly Black city where nearly half the utility’s customers reside.
“In America, representation is vital at every layer of government—national, state, and local,” Mayor Woodfin remarked during a press conference.
U.S. Chief District Judge Emily C. Marks has opted not to immediately block the legislation pending a hearing. Oral arguments from both sides will be heard on May 15.