AZ SB1172

Establishes energy and water savings accounts for cities, towns, counties, school districts, community colleges, the Arizona Board of Regents, and the state to fund energy or water savings projects in public facilities using capital investment monies from utility companies.

Allows public entities to enter into guaranteed energy cost savings contracts with qualified providers where the cost of improvements does not exceed energy and operational cost savings over the expected life of measures (up to 25 years).

Requires qualified providers to conduct independent third-party validation of cost savings calculations by licensed professional engineers and prepare annual measurement and verification reports for the first three years.

Mandates repayment schedules that result in lower total energy or water costs for the public entity, with monthly transfers from maintenance and operation budgets to repay capital investments plus reasonable carrying charges.

Allows public entities to use rebate, grant, and other funding sources (including federal bonds and ARRA funds) to reduce project costs and required repayment amounts; requires reporting of all projects to the Department of Commerce Energy Office.