Local Government Energy Efficiency Project Bond Act Goes Into Effect

The Local Government Energy Efficiency Project Bond Act (Act 1275 of 2015), which provides financing for energy efficiency projects for municipalities and counties under Amendment 89 of the Arkansas Constitution, recently went into effect.  The Act authorizes Arkansas municipalities and counties to enter into a guaranteed energy cost savings contract with the goal of reducing energy consumption or operating costs of government facilities.  The Act also allows for these projects to be financed through the issuance of bonds for energy efficiency improvements that will generate sufficient savings to make principal and interest payments on the bonds.  The Act was endorsed by both the Arkansas Advanced Energy Association and the Arkansas Municipal League.