SB869 Summary

• Creates the "Local Government Energy Efficiency Project Bond Act" enabling municipalities and counties to issue bonds to finance energy efficiency projects under Arkansas Constitution Amendment 89.

• Allows municipalities and counties to enter into guaranteed energy cost savings contracts with qualified providers where energy savings cover all project costs including financing over a specified term not exceeding 20 years.

• Requires qualified providers to guarantee that energy and operating cost savings meet or exceed project costs, with providers reimbursing shortfalls if annual savings fail to meet guaranteed amounts.

• Permits bonds to be secured by pledges of operating cost savings or guaranteed energy cost savings contracts, with bonds exempt from state, county, and municipal taxes.

• Applies only to municipalities and counties, excluding state agencies, school districts, and special taxing districts; allows optional compliance with Arkansas Energy Office rules.