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Republican Sponsorship
Government Operations

HB1608

To Establish The Public Entity Streetlight System Investment Act; And To Reduce Public Entity Street Lighting Costs.

Failed

Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment

Sponsors

AI-Generated Summary

House Bill 1608, the 'Public Entity Streetlight System Investment Act,' provides Arkansas municipalities, counties, and the state with the authority to purchase streetlight fixtures currently owned by electric utilities. The bill aims to reduce public lighting costs and improve municipal control over street lighting assets by allowing public entities to own their lighting systems rather than renting them via utility tariffs. It establishes procedures for determining compensation to utilities for these assets, including depreciation and salvage values. The bill also mandates that new or replacement lighting fixtures must meet specific energy-efficiency and light-pollution standards, such as being fully shielded and having specific color temperature limits. Utilities are required to create alternative tariff rates for supplying power to public-owned fixtures that exclude maintenance and facility charges. Finally, the bill empowers the Arkansas Public Service Commission to resolve any disputes between public entities and utilities regarding the sale, maintenance, or operation of these systems.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are public entities—specifically municipalities, counties, and the State of Arkansas—that will gain greater control over their lighting infrastructure, potentially reducing long-term costs and improving lighting quality. Local taxpayers may also benefit if the projected savings from municipal ownership and energy-efficient lighting upgrades are realized in lower government expenditures. Additionally, citizens may benefit from improved public safety due to better-managed lighting systems and potentially reduced light pollution in their communities.

Who Might Suffer?

Electric utility companies are the primary entities negatively impacted, as the bill allows municipalities to take ownership of existing lighting assets and eliminates the utilities' 'facilities charges,' which are a recurring source of revenue. Utilities will also face additional administrative requirements, such as filing alternative tariff rates and coordinating the transfer or removal of fixtures. Furthermore, any private maintenance contractors currently employed by utilities to manage these streetlights may experience a disruption or loss of business if public entities choose to shift their maintenance contracts to other service providers.

Read Full Bill on arkleg.state.ar.us