AR HB1646

Limits the maximum term of energy savings contracts for school districts to the useful life of the energy conservation measures, or the weighted average useful life if multiple types of measures are financed through a single debt issue.

Establishes performance-based efficiency project requirements under the Local Government Capital Improvement Revenue Bond Act, requiring estimated annual efficiency savings equal to at least 135% of annual implementation costs and independent professional engineer verification.

Modifies the maximum term for guaranteed energy cost savings contracts from 20 years to the lesser of 20 years or the useful life of the energy cost savings measures being financed.

Requires the Arkansas Energy Office to evaluate and approve qualified providers within 90 days of application, giving full consideration to all completed energy efficiency projects regardless of financing type or arrangement method.

Adds provisions requiring weighted average useful life calculations based on initial capital costs when multiple energy efficiency measures are financed through a single debt issue.