100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB0950

 

Introduced 2/7/2017, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/25-45

    Amends the Illinois Procurement Code. Provides for executive agencies, the Department of Central Management Services, and the Capital Development Board to enter into guaranteed energy savings contracts. Requires the agencies to enter into a request for proposals before entering into a guaranteed energy savings contracts; sets forth requirements for the request for proposals. Sets forth provisions concerning the evaluation of proposals. Requires guaranteed energy savings contracts to result in energy or operational cost savings within 20 years. Requires contractors to reimburse the State for any shortfall of guaranteed energy savings projected in the contract. Sets forth other requirements, and provides that certain State laws apply to any contracts entered into under the provisions. Provides that no provision shall be interpreted to require the implementation of energy conservation measures that conflict with respect to any property eligible for, nominated to, or entered on the National Register of Historic Places or the Illinois Register of Historic Places. Removes prior provisions allowing the chief procurement officer to promulgate rules for entering into energy conservation program contracts.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 25-45 as follows:
 
6    (30 ILCS 500/25-45)
7    Sec. 25-45. Executive agency energy conservation and
8saving measures Energy conservation program.
9    (a) Definitions. As used in this Section:
10    "Board" means the Capital Development Board or its
11successors.
12    "Contracting authority" means the Department, the Board,
13or other such agencies as may be delegated to execute certain
14of its statutory procurement functions through
15intergovernmental agreements specifically developed for the
16purpose of securing energy conservation services.
17    "Department" means the Department of Central Management
18Services acting in its capacity as the statutory owner and
19manager of all properties owned and operated by the State of
20Illinois on behalf of agencies, boards, and commissions
21functioning under the executive authority of the Governor.
22    "Energy conservation measure" means any improvement,
23repair, alteration, or betterment of any executive agency

 

 

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1facility or any equipment, fixture, or furnishing to be added
2to or used in an executive agency facility, that is designed to
3reduce energy consumption or operating costs, and may include,
4but is not limited to, one or more of the following:
5        (1) Insulation of the building structure or systems
6    within the building.
7        (2) Storm windows or doors, caulking or weather
8    stripping, multiglazed windows or doors, heat-absorbing or
9    heat-reflective glazed and coated window or door systems,
10    additional glazing, reductions in glass area, or other
11    window and door system modifications that reduce energy
12    consumption.
13        (3) Automated or computerized energy control systems.
14        (4) Heating, ventilating, or air conditioning system,
15    modifications, or replacements.
16        (5) Replacement or modification of lighting fixtures
17    to increase the energy efficiency of the lighting system
18    without increasing the overall illumination of a building,
19    unless an increase in illumination is necessary to conform
20    to the applicable State or local building code for the
21    lighting system after the proposed modifications are made.
22        (6) Energy recovery systems.
23        (7) Energy conservation measures that provide
24    long-term operating cost reductions.
25    "Executive agency facility" means a building owned and
26operated by the State of Illinois through an agency, board, or

 

 

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1commission statutorily functioning under the executive
2authority of the Governor or other constitutional officers.
3    "Guaranteed energy savings contract" means a contract for:
4(i) the implementation of an energy audit, data collection, and
5other related analyses preliminary to the undertaking of energy
6conservation measures; (ii) the evaluation and recommendation
7of energy conservation measures; (iii) the implementation of
8one or more energy conservation measures; and (iv) the
9implementation of project monitoring and data collection to
10verify post installation energy consumption and energy related
11operating costs. The contract shall provide that all payments,
12except obligations on termination of the contract before its
13expiration, are to be made over time and that the savings are
14guaranteed to the extent necessary to pay the costs of the
15energy conservation measures. "Energy savings" may include
16energy reduction and offsetting sources of renewable energy
17funds, including renewable energy credits and carbon credits.
18    "Qualified provider" means a person whose employees are
19experienced and trained in the design, implementation, or
20installation of energy conservation measures. The minimum
21training required for any person or employee under this Section
22shall be the satisfactory completion of at least 40 hours of
23course instruction dealing with energy conservation measures.
24A qualified provider to whom the contract is awarded shall give
25a sufficient bond to the executive agency or for its faithful
26performance.

 

 

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1    (b) Before entering into a guaranteed energy savings
2contract, the contracting authority shall issue a request for
3proposals in accordance with Article 30 of this Code requesting
4competitive sealed offers for innovative solutions and
5conservation measures. A request for proposals shall be
6published in the volume of the Illinois Procurement Bulletin
7under the authority of the chief procurement officer for the
8Capital Development Board for at least 30 days before offers
9are due. The request for proposals shall, at a minimum, include
10all of the following:
11        (1) The name and address of the executive agency.
12        (2) The name, address, title, and phone number of an
13    executive agency contact person who will respond to
14    questions regarding the request for proposals.
15        (3) Notice indicating that the contracting authority
16    is requesting qualified providers to propose energy
17    conservation measures through a guaranteed energy savings
18    contract.
19        (4) The date, time, and place where offers must be
20    received.
21        (5) The evaluation criteria for evaluating offers.
22        (6) Any other stipulations and clarifications the
23    contracting authority or executive agency facility may
24    require.
25        (7) A written disclosure that identifies any energy
26    services contractor that participated in the preparation

 

 

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1    of specifications. If no energy services contractor
2    participated in the preparation of specifications, then
3    the request for proposals must include a disclosure that no
4    energy services contractor participated in the preparation
5    of the specifications.
6    (c) The evaluation of offers shall analyze the estimates of
7all costs of installations, modifications, or remodeling,
8including, but not limited to, costs of a pre-installation
9energy audit or analysis, design, engineering, installation,
10maintenance, repairs, debt service, conversions to a different
11energy or fuel source, or post-installation project
12monitoring, data collection, and reporting. The evaluation
13shall include a detailed analysis of whether either the energy
14consumed or the operating costs, or both, will be reduced. If a
15licensed architect or registered professional engineer on the
16executive agency's or contracting authority's staff is
17unavailable to serve as an evaluator, then the evaluation shall
18include a registered professional engineer or architect, who is
19retained by the executive agency or contracting authority. A
20licensed architect or registered professional engineer
21participating on an evaluation team under this Section must not
22have any financial or contractual relationship with an offeror
23or other source that would constitute a conflict of interest.
24The contracting authority or executive agency facility may pay
25a reasonable fee for evaluation of the proposal or include the
26fee as part of the payments made under subsection (e) of this

 

 

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1Section. Any contracting agency shall coordinate with the Board
2to ensure that there are no conflicts with the proposals and
3current or upcoming Board projects.
4    (d) After evaluating the proposals, a contracting
5authority for an executive agency facility may enter into a
6guaranteed energy savings contract with the best-qualified
7offeror if the contracting authority finds that the amount it
8would spend on the energy conservation measures recommended in
9the proposal would not exceed the amount to be saved in either
10energy or operational costs, or both, within a 20-year period
11from the date of installation if the recommendations in the
12proposal are followed. Contracts let or awarded must be
13published in the volume of the Illinois Procurement Bulletin
14under the authority of the chief procurement officer for the
15Capital Development Board or as otherwise prescribed by
16agreement between the Capital Development Board and the
17contracting authority.
18    (e) The guaranteed energy savings contract shall include
19the contractor's guarantee that either the energy or
20operational cost savings, or both, will meet or exceed within
2120 years the costs of the energy conservation measures. The
22contractor shall reimburse the State for any shortfall of
23guaranteed energy savings projected in the contract. A
24contractor shall provide a sufficient bond, as determined by
25the State, to the contracting authority for the installation
26and the faithful performance of all the measures included in

 

 

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1the contract. The guaranteed energy savings contract may
2provide for payments over a period of time, not to exceed 20
3years from the date of final installation of the energy
4conservation measures.
5    (f) The contracting authority may enter into an installment
6payment contract or lease purchase agreement with a contractor
7for services solicited under this Section or with a third
8party, as authorized by law, for the funding or financing of
9the purchase and installation of energy conservation measures.
10The State of Illinois may issue certificates evidencing the
11indebtedness incurred pursuant to the contracts. Each contract
12or agreement entered into by a contracting authority pursuant
13to this Section shall be authorized by official action of the
14contracting authority. The authority granted in this Section is
15in addition to any other authority granted by law. If an energy
16audit is performed by an energy services contractor for an
17executive agency facility within the 3 years immediately
18preceding the request for proposals, then the contracting
19authority must publish as a reference document in the
20solicitation for energy conservation measures the following:
21        (1) an executive summary of the energy audit, provided
22    that the contracting authority and executive agency
23    facility may exclude any proprietary or trademarked
24    information or practices; or
25        (2) the energy audit, provided that the contracting
26    authority and executive agency facility may redact any

 

 

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1    proprietary or trademarked information or practices.
2    An executive agency facility or contracting authority may
3not withhold the disclosure of information related to: (i) the
4executive agency facility's consumption of energy, (ii) the
5physical condition of the executive agency's facilities, and
6(iii) any limitations prescribed by the executive agency
7facility or contracting authority.
8    (g) Guaranteed energy savings contracts may extend beyond
9the fiscal year in which they become effective. The agency
10responsible for payments under such a contract shall include in
11its annual budget and appropriations measures for each
12subsequent fiscal year any amounts payable under guaranteed
13energy savings contracts during that fiscal year.
14    (h) In cooperation with the contracting authority, the
15executive agency facility shall document the operational and
16energy cost savings specified in the guaranteed energy savings
17contract and designate and appropriate that amount for an
18annual payment of the contract. If the annual energy savings
19are less than projected under the guaranteed energy savings
20contract the contractor shall pay the difference as provided in
21subsection (e) of this Section.
22    (i) An executive agency facility or contracting authority
23may use funds designated for operating or capital expenditures
24for any guaranteed energy savings contract including purchases
25using installment payment contracts or lease purchase
26agreements. An executive agency facility or contracting

 

 

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1authority that enters into such a contract or agreement may
2covenant in the contract or agreement that payments made under
3the contract or agreement shall be payable from the first funds
4legally available in each fiscal year.
5    (j) Operating and maintenance funds and other amounts
6appropriated for distribution to or reimbursement of an
7executive agency facility or contracting authority shall not be
8reduced as a result of energy savings realized from a
9guaranteed energy savings contract or a lease purchase
10agreement for the purchase and installation of energy
11conservation measures.
12    (k) Other State laws and related administrative
13requirements apply to this Section, including, but not limited
14to, the following laws and related administrative
15requirements: the Illinois Human Rights Act, the Prevailing
16Wage Act, the Public Construction Bond Act, the Employment of
17Illinois Workers on Public Works Act, the Freedom of
18Information Act, the Open Meetings Act, the Illinois
19Architecture Practice Act of 1989, the Professional
20Engineering Practice Act of 1989, the Structural Engineering
21Practice Act of 1989, the Local Government Professional
22Services Selection Act, and the Contractor Unified License and
23Permit Bond Act.
24    (l) In order to protect the integrity of historic
25buildings, no provision of this Section shall be interpreted to
26require the implementation of energy conservation measures

 

 

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1that conflict with respect to any property eligible for,
2nominated to, or entered on the National Register of Historic
3Places, pursuant to the federal National Historic Preservation
4Act of 1966, or the Illinois Register of Historic Places,
5pursuant to the Illinois Historic Preservation Act.
6State purchasing officers may enter into energy conservation
7program contracts that provide for utility cost savings. The
8chief procurement officer shall promulgate and adopt rules for
9the implementation of this Section.
10(Source: P.A. 90-572, eff. date - See Sec. 99-5.)