ADE Director's Communication Memo Form


Memo Number : FIN-02-017

Date Created : 09/11/2001

Attention:

Superintendents
Co-op Directors

Type of Memo: Informational
Response Required: No
   
Section:   Public School Finance and Admin Support - Ms. Patricia Martin
Subject:
Energy Savings Contracts

Regulatory Authority:
Act 1717 of 2001 and Act 1220 of 2001

Contact Person:
Cindy Chaney

Phone Number:
501/682-4494

E-mail:
cchaney@arkedu.k12.ar.us

Act 1717 of 2001 amended certain requirements pertaining to Energy Savings Contracts. In particular, this Act extended the length of time over which the amount spent on an energy conservation measure would not exceed the amount saved on either energy or operational costs or both. Under specific requirements detailed in the Act, the length of time maybe either fifteen or twenty years. The Act does not authorize any changes to the financing of Energy Savings Contracts.

Section 12, Act 1220 of 2001, authorized the use of revolving loans for the financing of energy conservation measures. This Act also requires revolving loans, postdated warrants, installment contracts or lease-purchase agreements to be paid in full within ten years.

Any energy conservation measure to be financed for greater than ten years may not be financed with revolving loans, postdated warrants, installment contracts or lease-purchase agreements. Other qualified forms of financing may be used.

Attachments:
    None

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