(Phoenix, AZ) – Thirty-eight jurisdictions in Arizona have received an allocation of Qualified Energy Conservation Bonds (QECBs) from the Arizona Department of Commerce. Part of the American Recovery and Reinvestment Tax Act of 2009 (ARRA), this new program authorizes QECBs to be issued by the State, local jurisdictions and tribal governments to finance government programs and initiatives designed to reduce greenhouse gas emissions.
“These bonds allow energy and water efficiency projects to start now; creating jobs for Arizonans in some of the areas hardest hit by the current economic downturn,” said Governor Jan Brewer.
QECBs are qualified tax credit bonds that were originally authorized by the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Pub. L.110-343) with a national limitation of $800 million. ARRA increased the amount of QECBs that may be issued from $800 million to $3.2 billion. This expansion is intended to enable states to issue QECBs to finance, among other purposes, retrofits of existing public and private buildings through loans, grants or other repayment mechanisms to individual homeowners or businesses. Other repayment mechanisms can include periodic fees assessed on a government bill or utility bill that approximates the energy savings of energy efficiency or conservation retrofits. Retrofits can include heating, cooling, lighting, water-saving, storm water-reducing, or other efficiency measures.
The QECB program is another example of a financing mechanism administered by Commerce to create jobs, foster economic development and develop critical infrastructure. Additional information about the QECB program is available on the Commerce website at http://www.azcommerce.com/BusAsst/Incentives/QECB.htm.