The bill establishes regulations for the operation of motor vehicles equipped with automated driving systems (ADS) in Alabama, defining key terms such as "ADS-equipped vehicle," "fully autonomous vehicle," and "on-demand autonomous vehicle network." It allows these vehicles to operate without a conventional human driver, provided they can achieve a minimal risk condition. Additionally, it mandates that fully autonomous vehicles maintain liability coverage of at least $100,000 and designates the automated driving system as the operator when engaged. The bill also clarifies that liability for accidents involving ADS-equipped vehicles will follow existing state and federal laws and protects original manufacturers from liability for defects due to third-party modifications.

Moreover, the bill includes new legal language that enhances environmental protection regulations by requiring state agencies to conduct comprehensive environmental impact assessments before approving new development projects. It removes outdated provisions that allowed expedited project approvals without adequate environmental review, specifically deleting exemptions for small-scale developments from environmental assessments. This aims to close loopholes that could lead to environmental degradation, thereby strengthening environmental safeguards and promoting sustainable development practices in Alabama. The act is set to take effect on October 1, 2024.