Arkansas
Financial Incentives
Tax Benefits: Arkansas provides a tax exemption for windmill blade and component
manufacturers.1
Loan Programs: The Arkansas Industrial Energy Technology Loan Program provides lowinterest loans to industries in Arkansas to implement energy efficiency retrofits or install
renewable energy technologies.2 The Sustainable Building Design Revolving Loan Fund
provides loans for energy efficiency improvements made to state buildings.3 Arkansas also offers
low-interest loans of up to $45,000 to small businesses for pollution control and energy
efficiency measures.4
Grants: The Arkansas Alternative Fuels Development Fund provides grants and other financial
incentives to alternative fuel producers and distributors.5
Rebates: Arkansas offers rebates of up to $200 for the purchase of certain Energy Star
appliances. Each household is eligible for one rebate in each of several categories. 6 Arkansas also
offers rebates for newly installed residential and commercial renewable energy systems and solar
water heating systems.7
Rules and Regulations
Building Codes, Appliance, and Equipment Standards: Residential and commercial buildings
in Arkansas are subject to the 2004 Arkansas Energy Code for New Building Construction,
which is based on the 2003 IECC and incorporates by reference the American Society of
Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Standard 90.1-2001 for
buildings other than low-rise residential buildings.8
Electricity Transmission, Interconnection and Storage: Residential renewable energy
systems, microturbines, and fuel cells of fewer than 25 kW and commercial systems of fewer
than 300 kW are eligible for interconnection and net metering.9 Customer-generators must meet
all local and national performance standards and must install an external disconnect switch
unless they meet certain requirements.10 For net metering, customers’ net excess generation
(NEG) is credited to their account, and any remaining excess generation at the end of an
annualized period is returned to the utility. Under certain circumstances, utilities are authorized
to increase fees charged to net-metered customers.
Government Procurement: The Arkansas Energy Office must develop a plan for a 20 percent
reduction from 2008 energy use levels in all existing major state-owned facilities by 2014 and a
30 percent reduction by 2017. New state-owned constructions must be at least 10 percent more
efficient than required by ASHRAE Standard 90.1-2007. Arkansas must also complete an energy
audit of every public agency by 2014.11 All diesel-powered motor vehicles, light trucks, and
equipment owned or leased by state agencies are required to use diesel fuel that contains a
minimum of 2 percent biofuel, with certain exceptions.12
Policies, Plans, and Governmental Affiliations
Policies and Plans: The Governor’s Commission on Global Warming issued a final report in
October 2008 recommending that Arkansas adopt a goal of reducing the state’s GHG emissions
below 2000 levels according to the following schedule: 20 percent by 2020; 35 percent by 2025;
and 50 percent by 2035. The report also proposed a set of 54 policies to meet this goal.13
Government Entities: Arkansas Department of Environmental Quality,14 Arkansas Economic
Development Commission,15 Arkansas Energy Office,16 Arkansas Public Service Commission,17
Governor’s Commission on Global Warming.18
Regional Memberships: Arkansas is a member of the SGA.
1
Ark. Code § 26-51-311; House Bill 2230 (2009).
http://arkansasenergy.org/energy-in-arkansas/energy-policy-and-legislation/recovery-2009/state-energyprogram/industrial-energy-technology-loan-fund.aspx.
3
http://www.arkansasenergy.org/energy-in-arkansas/energy-policy-and-legislation/recovery-2009/state-energyprogram/sustainable-building-design-revolving-loan-fund.aspx.
4
http://www.adeq.state.ar.us/poa/sba/envloans.htm.
5
Ark. Code §§ 15-13-101 to 15-13-102; Ark. Code §§ 15-13-301 to 15-13-305; Ark. Code § 19-6-809;
http://arkansasenergy.org/transportation/incentives-and-programs/state-incentives.aspx.
6
http://www.arkansasenergy.org/energy-in-arkansas/energy-policy-and-legislation/recovery-2009/energy-starappliance-rebate.aspx.
7
http://arkansasenergy.org/energy-in-arkansas/energy-policy-and-legislation/recovery-2009/state-energyprogram/renewable-technology-rebate-fund.aspx.
8
http://arkansasenergy.org/residential/builders/energy-code.aspx.
9
Ark. Code § 23-18-603 et seq.
10
Ark. Pub. Service Comm'n Order No. 8, Docket 06-105-U.
11
House Bill 1663 (2009).
12
Ark. Code §§ 15-13-101 to 15-13-102; Ark. Code §§ 15-13-202 to 15-13-205.
13
http://www.arclimatechange.us/ewebeditpro/items/O94F20338.pdf.
14
http://www.adeq.state.ar.us/.
15
http://arkansasedc.com/.
16
http://arkansasenergy.org/.
17
http://www.state.ar.us/psc/.
18
http://www.arclimatechange.us/.
2