HB5503 97TH GENERAL ASSEMBLY

LRB097 15518 PJG 60642 b

97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB5503

Introduced 2/15/2012, by Rep. Brandon W. Phelps

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.811 new
30 ILCS 500/30-45

Creates the Energy Efficiency Program for State Government Buildings Act. Creates the Energy Efficiency Program for State Government Buildings to be administered by the Capital Development Board. Provides that the Energy Efficiency Program for State Government Buildings shall provide for implementation of low cost/no cost energy conservation measures, engineering analyses, energy efficiency measures, building improvements, and monitoring of results for State-owned or State-leased buildings. Provides that savings from the implementation of energy efficiency measures under a guaranteed energy savings performance contract shall be used to satisfy the obligations under the guaranteed energy savings performance contract and to repay the cost of the other means used to finance the energy efficiency measures. Provides that the Board shall establish high-performance building standards. Provides that the Board shall establish, by rule, a process for procurement of energy savings performance contracts. Sets forth provisions concerning an energy audit training program and life-cycle energy cost analyses. Requires an annual report on energy efficiency measures in State government. Creates the Energy Efficiency in State Government Buildings Fund. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning energy efficiency.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Energy Efficiency Program for State Government Buildings Act.

Section 5. Purpose. The General Assembly finds and declares it to be the public policy of the State to maximize the use of energy efficiency measures in the construction, renovation, and maintenance of buildings owned or leased by the State. In furtherance of this policy, the Capital Development Board shall administer an energy efficiency program, to be known as the Energy Efficiency Program for State Government Buildings.

Section 10. Definitions. As used in this Act, unless the context requires otherwise:

"Aggregate simple payback period" means the simple payback period of a set of energy efficiency measures taken together for a building.

"Building" means all contiguous land, structures, appurtenances, and improvements that use energy.

"Board" means the Capital Development Board.

"Capital cost avoidance" means savings generated when expenditures of appropriated capital construction or appropriated capital outlay funds are avoided because the budgeted capital improvements or items of equipment are contained within the energy efficiency measures provided by a guaranteed energy savings performance contract.

"Director" means the Executive Director of the Capital Development Board.

"Energy audit" means examination of a building's energy-using systems, energy consumption and costs, occupancy patterns, and operation and maintenance procedures.

"Energy efficiency measure" means any construction, improvement, repair, alteration, or betterment of a building that is intended to reduce energy consumption; or any equipment, fixture, or furnishing to be added to or used in a building that will be a cost-effective energy-related project that is intended to reduce energy consumption.

"ENERGY STAR" means the voluntary program administered by the United States Environmental Protection Agency and the United States Department of Energy that is designed to protect the environment through the promotion of energy-efficient products and practices.

"Engineering analysis" means a detailed cost-benefit analysis of energy efficiency investments, including a review of potential cost savings through operation and maintenance changes.

"Guaranteed energy savings performance contract" means an agreement for the provision of energy services or equipment, including energy efficiency measures, energy conservation measures and alternate energy technologies for State government buildings, in which a person agrees to design, construct, install, maintain, operate, or manage energy systems or equipment to improve energy efficiency of, or produce energy in connection with, a State government building. Payments for a guaranteed energy savings performance contract shall be made from measured and verified savings generated from implementation of the energy efficiency measures financed by the contract. The term of a guaranteed energy savings performance contract shall not exceed the life of the energy savings generated from implementation of the energy efficiency measures financed by the contract. If the measured and verified savings are not sufficient to pay the financial obligations under the contract, the contractor is liable for the contract payments.

"High-performance building" means a State government building that is designed, constructed, and capable of being operated in a manner that:

(1) increases environmental performance and economic value over time;

(2) safeguards the health of occupants;

(3) enhances satisfaction and productivity of workers through energy-efficient systems;

(4) incorporates environmentally friendly materials and products; and

(5) reduces waste.

"Life-cycle cost analysis" means a method for estimating the total cost of an energy-using component or building over its useful life, including cost factors such as purchase price or construction, renovation, or leasing costs, energy use, maintenance, interest, and inflation.

"Low cost/no cost energy conservation measures" means those energy saving practices and energy efficiency measures, usually involving operation and maintenance practices, that can be accomplished by existing personnel within existing operating budgets.

"Operating costs" means expenditures associated with operating and maintaining a properly functioning building and its systems including but not limited to the heating, ventilation, cooling, lighting, plumbing, water heating, electrical, and laundry systems and their controls.

"Simple payback period" means the number of years it takes to pay back, from estimated savings, the initial cost of an energy efficiency measure with the simple payback period equal to the initial cost divided by the estimated annual savings.

"Savings" means the reduction in expenditures, excluding any State government and university personnel expenditures, that are measured and verified, including but not limited to energy usage, operating costs, and capital cost avoidance that occur as a result of the implementation of energy efficiency measures.

Section 15. Energy Efficiency Program for State Government Buildings.

(a) The Energy Efficiency Program for State Government Buildings shall provide for implementation of low cost/no cost energy conservation measures, engineering analyses, energy efficiency measures, building improvements, and monitoring of results for State-owned or State-leased buildings.

(b) Any engineering analysis conducted on a State-owned building shall assess the energy efficiency of the building and make recommendations for improving the efficient use of energy within the building. The analyses shall be performed by qualified engineers, architects, or other persons trained in energy efficiency who may be employees of the Board.

(c) Except as provided in subsection (e) of this Section, measures to improve the energy efficiency of a State-owned building that have an aggregate simple payback period of 5 years or less shall be implemented subject to appropriation. No more than 5% of the cost of energy efficiency measures for a building may be used for monitoring the results.

(d) If funds are appropriated for energy efficiency improvements, the Board shall prioritize projects among the various State-owned buildings to determine which projects shall be implemented to best use the available funding.

(e) If no funds are appropriated for energy efficiency improvements, energy efficiency measures for a State-owned building may be financed by other means. These other means include but are not limited to guaranteed energy savings performance contracts as defined under this Act. These energy efficiency measures shall not be limited to those that have an aggregate simple payback period of 5 years or less, but shall result in reasonable economic benefit to the State. Ownership of the energy efficiency measures shall be transferred to the State upon completion of the guaranteed energy savings performance contract or as otherwise agreed upon in the contract. Savings from the implementation of the energy efficiency measures under the guaranteed energy savings performance contract shall be used to satisfy the obligations under the guaranteed energy savings performance contract and to repay the cost of the other means used to finance the energy efficiency measures, and may be used to repay expenses incurred by the Board to reimburse the Board for expenses related to the guaranteed energy savings performance contract, including but not limited to staff time for monitoring, overseeing, and managing the project. All savings projected under a guaranteed energy savings performance contract shall be guaranteed to the State.

(f) The savings in reduced expenditures that are specified as payment sources shall be documented in the guaranteed energy savings performance contract. Savings shall be determined by using one of the measurement and verification methodologies listed in the United States Department of Energy's "International Performance Measurement and Verification Protocol". If specific data limitations or documented unique characteristics of the project prevent use of the "International Performance Measurement and Verification Protocol", an alternative method that is compatible shall be adopted upon documentation and approval of the Director.

Section 20. Required high-performance building standards.

(a) To improve energy efficiency throughout State government, the Board and the universities that manage their own capital construction projects shall:

(1) beginning July 1, 2013, require that all construction or renovation of State government buildings for which 50% or more of the total capital cost is paid by the State shall be designed and constructed, or renovated, to meet the high-performance building standards established in this Act; this item (1) applies to all projects that have not entered the design phase prior to January 1, 2013;

(2) require that all building leases entered into by the State or any of its agencies on and after July 1, 2022, shall meet the high-performance building standards; from July 1, 2013 and prior to July 1, 2022, a building that meets the high-performance building standards established in this Act shall be given a preference in the State leasing process over other buildings that do not meet the high-performance building standards; and

(3) incorporate ENERGY STAR-qualified products in State agency procurements to the extent economically feasible using a life-cycle cost analysis.

(b) The Board shall promulgate administrative rules pursuant to the Illinois Administrative Procedure Act necessary to implement this Section. The Board shall establish the criteria for the high-performance building standards and the benchmarks by which the high-performance building standards will be measured. At a minimum, the Board shall:

(1) include the standards for site selection and management, water efficiency, energy conservation, waste reduction, material and resource use, and indoor air quality; and

(2) require that each high-performance building be designed, constructed, or renovated so that it is capable of being rated as an ENERGY STAR building in accordance with the criteria and rating system adopted by the United States Environmental Protection Agency and in effect at the time the building is designed or, in the case of buildings that are leased by the State on or after July 1, 2022, at the time the lease is entered into.

(c) In developing the criteria for the high-performance building standards, the Board shall consider and encourage the use of:

(1) building materials manufactured with recycled content within the State; and

(2) renewable energy sources.

(d) The Board shall develop, by rule, a certification process for the attainment of high-performance building standards with respect to the following 5 keys areas of human and environmental health:

(1) sustainable site development;

(2) water savings;

(3) energy efficiency;

(4) material selection; and

(5) environmental quality.

Section 25. Energy audit training program. The Board, with the assistance of the Governor's Office of Management and Budget, shall institute an energy audit training program to identify energy saving techniques for State-owned building maintenance staff. Additional programs shall be developed to educate State employees and other building occupants on energy awareness and practices to reduce energy use in State-owned buildings. Local government employees may be included in training and educational programs.

Section 30. Life-cycle energy cost analyses. The Board shall require persons submitting bids or plans for State-owned buildings to be constructed or substantially renovated after July 15, 2013, to include within those bids or plans life-cycle energy cost analyses. The Board shall consider those life-cycle cost analyses when evaluating competing bids or plans.

Section 35. Report on energy efficiency measures in State government. The Board shall report on or before October 15, 2013, and on or before every October 15 thereafter to the Legislative Research Unit and the Commission on Government Forecasting and Accountability on progress made to maximize the use of energy-efficiency measures in State government. The Commission on Government Forecasting and Accountability shall transmit the report to the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate. The report shall include but not be limited to:

(1) a summary of initiatives undertaken by the Board during the reporting period to promote adoption of low cost/no cost energy-efficiency measures, including employee training efforts;

(2) a summary of energy-efficiency measures installed and energy improvements made during the reporting period;

(3) energy consumption and expenditure data for facilities owned or leased by State government and any documented savings made as a result of energy-efficiency measures and improvements;

(4) a status report on the number of buildings newly constructed, renovated, or leased in accordance with the high-performance building standards required under this Act and the amount of savings realized based upon a life-cycle cost analysis;

(5) any efforts made during the reporting period to promote acquisition of energy-efficient products pursuant to this Act and the amount of savings expected to be realized in the first year of operation from the purchase of ENERGY STAR-qualified products pursuant to this Act;

(6) any recommendations for future funding of energy improvements or other measures needed to assure energy efficiency in State government; and

(7) any improvements in energy efficiency planned or realized through the use of ENERGY STAR-qualified products and guaranteed energy savings performance contracts.

Section 40. Energy Efficiency in State Government Buildings Fund.

(a) A special fund in the State treasury is hereby created which shall be known as the Energy Efficiency in State Government Buildings Fund. The Fund shall be used to provide financial assistance to State government agencies for the purposes of this Act. Notwithstanding any other law to the contrary, the Energy Efficiency in State Government Buildings Fund is not subject to sweeps, administrative charge-backs, or any other fiscal or budgetary maneuver that would in any way transfer any amounts from the Energy Efficiency in State Government Buildings Fund into any other fund of the State.

(b) The Fund may receive State appropriations, gifts, grants, and federal funds and shall include earnings from the investment of moneys in the Fund.

(c) Administration of this Fund shall be the responsibility of the Board. The Board shall establish terms and conditions for the operation of the Fund including the application process. The Board shall establish and implement fiscal controls and accounting periods for projects that receive financial assistance from the Fund.

Section 45. Administrative rules; energy savings performance contracts.

(a) Each agency responsible for managing State-owned property shall review the utility usage of the property and shall cooperate with the Board to determine which properties are good candidates for guaranteed energy savings performance contracts. The responsible agency is encouraged to implement guaranteed energy savings performance contracts where appropriate.

(b) The Board may implement the provisions of this Act through the promulgation of administrative rules pursuant to the Illinois Administrative Procedure Act.

(c) The Director shall promulgate administrative rules in accordance with the provisions of the Illinois Administrative Procedure Act establishing a process for procurement of energy savings performance contracts, including required contract language. The following entities shall adhere to these regulations when procuring services under a guaranteed energy savings performance contract:

(1) any governing body of a university that manages its own capital construction program; or

(2) any State agency that manages its own capital construction program.

(d) All State agencies, including those identified in subsection (c) of this Section, shall submit proposed guaranteed energy savings performance contracts to the Board for review and approval prior to contract execution.

(e) The Director shall report all authorized guaranteed energy savings performance contracts to the Speaker of the House of Representatives, the Minority Leader of the House of Representatives, the President of the Senate, and the Minority Leader of the Senate for its review.

Section 95. The State Finance Act is amended by adding Section 5.811 as follows:

(30 ILCS 105/5.811 new)

Sec. 5.811. Energy Efficiency in State Government Buildings Fund.

Section 100. The Illinois Procurement Code is amended by changing Section 30-45 as follows:

(30 ILCS 500/30-45)

Sec. 30-45. Other Acts. This Article is subject to applicable provisions of the following Acts:

(1) the Prevailing Wage Act;

(2) the Public Construction Bond Act;

(3) the Public Works Employment Discrimination Act;

(4) the Public Works Preference Act (repealed on June 16, 2010 by Public Act 96-929);

(5) the Employment of Illinois Workers on Public Works Act;

(6) the Public Contract Fraud Act;

(7) the Illinois Construction Evaluation Act; and

(8) the Project Labor Agreements Act; and .

(9) the Energy Efficiency Program for State Government Buildings Act.

(Source: P.A. 97-199, eff. 7-27-11; 97-333, eff. 8-12-11.)

Section 999. Effective date. This Act takes effect upon becoming law.