Before initiating a project under the Arkansas Guaranteed Energy Cost Savings Act the campus must obtain written approval from the President or Chief Financial Officer. Board Policy 730.3.

Energy Cost Savings Contracts to be issued under the Arkansas Guaranteed Energy Cost Savings Act must be procured through contractors pre-qualified by the Arkansas Division of Environmental Quality – Office of Energy. After a campus committee review of contractor proposals the Chancellor or campus chief executive officer selects a contractor to produce an investment grade audit (“IGA”).

Upon receipt of the IGA the campus determines whether to proceed with the proposed project. If the campus elects to proceed, the campus must submit to the President a project proposal and a description of the dollar amount of savings guaranteed.  After the President’s approval of the proposal an energy cost savings contract is negotiated and drafted through the General Counsel’s office.

When the contract terms have been finalized the proposed project is submitted to the Board for approval, together with a request to approve any financing required.