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SB 421: $300M Bond Plan for Water, Waste, and Pollution Projects

Table Of Contents

SB 421 by Senator Bart Hester

Title & Purpose

SB 421 is titled “An Act to Create the Arkansas Environmental Facilities Financing Act of 2025” and aims to establish a financing mechanism for water, waste disposal, and pollution abatement projects across Arkansas.

Key Provisions

  • Authorization of Bonds

      1. The bill authorizes the Arkansas Natural Resources Commission (ANRC) to issue general obligation bonds for environmental infrastructure.
      2. These bonds will be used to finance water projects, wastewater treatment facilities, and pollution control measures.
  • Bond Limitations

      1. The total principal amount of bonds issued cannot exceed $300 million.
      2. Bonds may be issued in series, with different amounts and maturity dates as needed.
  • Use of Bond Proceeds

      1. Proceeds from the bonds will be deposited into the Arkansas Environmental Facilities Financing Act of 2025 Bond Fund.
      2. Funds will be allocated for:
        1. Construction and improvement of public water and wastewater systems.
        2. Development of solid waste disposal and pollution abatement facilities.
        3. Financial assistance programs for municipalities, counties, and public utilities.
  • Tax Exemptions

      1. Bonds issued under this act will be exempt from state, county, and municipal taxes, ensuring lower borrowing costs.
  • Debt Service & Repayment

      1. The State of Arkansas pledges to repay the bonds with revenues from authorized sources.
      2. The State Treasurer is responsible for bond repayment, which will be managed through the State Debt Service Fund.
  • Oversight & Administration

      1. The ANRC will oversee project selection, bond issuance, and fund allocation.
      2. Reports and audits will be required to ensure proper use of funds and financial accountability.
  • Voter Approval Requirement
  • Since the bill involves state-backed debt, it requires voter approval in a statewide election before bonds can be issued.

Implications & Impact

  • Environmental Benefits: Improves water quality and waste management infrastructure across the state.
  • Economic Impact: Supports job creation in construction and infrastructure projects.
  • Financial Responsibility: Ensures state-backed debt is properly managed with oversight mechanisms.