AZ SB1296

Establishes energy and water savings accounts for cities, towns, counties, and school districts to fund energy or water efficiency projects in public facilities using capital investment monies from utility companies.

Allows public entities to enter into guaranteed energy savings contracts with qualified providers, with repayment schedules extending up to 25 years or the expected life of the measures, whichever is shorter.

Requires energy savings to be verified through baseline measurements, annual monitoring reports for the first three years, and reimbursement by providers for any shortfall in guaranteed savings.

Permits use of rebate grants, clean renewable energy bonds, and American Recovery and Reinvestment Act funding to reduce project costs and repayment obligations to utility companies.

Requires public entities to report project details to the Department of Commerce Energy Office, including project name, provider, total cost, and expected energy and cost savings.