AAC
governments under Act 1275 of 2015. Act 1252 of 2013 was the enabling legislation for Amendment 89. Mr. Howland explained how counties and other govern- mental units can take advantage of the alternative financing mechanisms available, without the need of upfront capital. Most energy performance contracts are financed by leverag- ing contractually guaranteed energy savings over a period of up to 20 years. In essence, the improvements are paid for by the energy cost savings the project generates. As I recall, the Arkansas Energy Office can provide technical assistance such as providing a county a list of qualified potential energy service companies (ESCOs) that have experience in and are approved to do projects in Arkansas. Technical assistance by the Arkansas En- ergy Office can also include monitoring construction ac- tivities, verifying the validity of reported savings, and even resolving disputes. Te ESCO serves as a combination Architect/Engineering Company and General Contractor. Te ESCO provides assurances and indemnifies the public entities by virtue of an annual energy savings guar- antee. Te Arkansas Department of Finance and Administra- tion (ADFA), provides the financing for projects for the state of Arkansas and may be an attractive partner for local entities for small to medium sized projects. Washington County Judge Joseph Wood explains: “In April of 2017, Washington County began looking into performance contracting to address energy production, lowering the need for total energy consumption, and deferred maintenance throughout county buildings. Performance contracting is allowing Washington County to replace HVAC equipment, update campus building life and fire alarm safety systems, manage its utility consumption units with much higher energy
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RESEARCH CORNER
In making Washington County better, our elected officials see the opportunities and benefits of being
good stewards of our environment while being cost effi- cient in managing county facilities.”
— Washington County Judge Joseph Wood
efficient units, and install the largest, completely taxpayer owned, solar production facility in Arkansas. In making Wash- ington County better, our elected officials see the opportunities and benefits of being good stewards of our environment while being cost efficient in managing county facilities.” During the 2019 regular session of the General Assembly the CJAA supported Senate Bill (SB) 145 sponsored by Sena- tors David Wallace and Bart Hester, Act 464 of 2019. Te act amended the Renewable Energy Development Act and amended the authority of the Public Service Commission on renewable energy. Tese amendments are vital to the feasibil- ity of net metering by counties and cities and the feasibility of the establishment of energy efficiency improvements and net metering by cities, counties and local communities. We greatly appreciate the support and efforts of sponsors and the General Assembly, as well as Pulaski County Attorney
Adam Fogleman, the various stakeholders, and Ted Tomas and his staff at the Public Service Commission. Te authority of cities, counties and local communities to
acquire access to efficient energy and feasible net metering goes far beyond furnishing energy for buildings owned by city or county government. Local communities now have the authority to feasibly establish energy efficiency improvements for city and county owned buildings and to an extent for lo- cal communities, business or residents. Te CJAA fall conference in Benton during Sept. 23-25 will focus on these issues. Chet Howland, Financial Projects Manager for the Arkansas Energy Office, Pulaski County Attorney Adam Fogleman, and several of our county judges will update the CJAA on the efficacy and contract necessities regarding energy efficiency in Arkansas.
www.arcounties.org COUNTY LINES, SUMMER 2019 15
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