Arkansas Code
Subchapter 8 - Local Government Energy Efficiency Project Bond Act
§ 14-164-808. Bonds — Issuance generally

(a)
(1) A municipality or county may issue bonds for an energy efficiency project within, near, or within and near the municipality or county.
(2) Bonds shall be issued pursuant to an ordinance adopted by the legislative body specifying:
(A) The principal amount of bonds to be issued;
(B) The purpose or purposes for which the bonds are to be issued; and
(C) Any other provisions deemed important with respect to the bonds.

(b) A legislative body shall not adopt an ordinance regarding the issuance of bonds unless the legislative body has determined that:
(1) All of the work on the energy efficiency project will be performed by a qualified provider; and
(2) The qualified provider has provided a guarantee of the operating cost savings to be realized from the energy efficiency project that:
(A) The energy cost savings and operating cost savings to be realized over the term of the guaranteed energy cost savings contract meet or exceed the costs of the energy efficiency project; and
(B) If the annual energy or operating cost savings fail to meet or exceed the annual costs of the energy efficiency project as required by the guaranteed energy cost savings contract, the qualified provider shall reimburse the issuer for any shortfall of guaranteed energy cost savings over the term of the guaranteed energy cost savings contract.

(c) The maximum term of the bonds may not exceed the shorter of:
(1) The useful life of the energy efficiency project; or
(2) Twenty (20) years.