101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1337

 

Introduced 2/7/2019, by Sen. Chapin Rose

 

SYNOPSIS AS INTRODUCED:
 
New Act
30 ILCS 500/20-60
30 ILCS 500/40-25
30 ILCS 500/25-45 rep.

    Creates the Energy Performance Contracting Act. Requires each governmental unit to implement cost-effective conservation improvements and maintain efficient operation of its facilities in order to minimize energy consumption and related environmental impacts, and reduce operating costs. Provides that any governmental unit may enter into an energy performance contract with a qualified energy service provider to produce utility savings or operating and maintenance cost-savings. Designates the Smart Energy Design Assistance Center as the lead agency for the development and promotion of a program of performance contracts in governmental units under the Act, and provides requirements and duties for that agency. Provides for the selection process of qualified energy service providers. Provides for audits, payments, and term requirements for energy performance contracts entered into under the Act. Provides for the monitoring and reporting of energy consumption and cost-savings under an energy performance contract. Provides for the use of savings from performance contracts. Provides that the provisions of the Act shall prevail and control over conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed. Defines terms. Amends the Illinois Procurement Code to make conforming changes. Effective immediately.


LRB101 00173 RJF 45173 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1337LRB101 00173 RJF 45173 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Energy
5Performance Contracting Act.
 
6    Section 5. Purpose. The purpose of this Act is to obtain
7long-term energy and cost-savings for all governmental units by
8facilitating prompt incorporation of energy conservation
9improvements or energy production equipment, or both, in
10connection with buildings or facilities owned, operated, or
11under the supervision and control of all governmental units, in
12cooperation with providers of such services and associated
13materials from the private sector. These arrangements will
14improve and protect the health, safety, security, and welfare
15of the people of this State by promoting energy conservation
16and independence, developing alternate sources of energy, and
17fostering business activity.
 
18    Section 10. Definitions. As used in this Act:
19    "Cost-effective" means that the present value to a
20governmental unit of the energy reasonably expected to be saved
21or produced by a facility, activity, measure, or piece of
22equipment over its useful life, including any compensation

 

 

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1received from a utility, is greater than the net present value
2of the costs of implementing, maintaining, and operating such
3facility, activity, measure, or piece of equipment over its
4useful life, when discounted at the cost of public borrowing.
5    "Cost-savings measure" means any facility improvement,
6repair or alteration, or any equipment, fixture, or furnishing
7to be added or used in any facility that is designed to reduce
8energy consumption and operating costs or increase the
9operating efficiency of facilities for their appointed
10functions that are cost effective. "Cost-savings measure"
11includes, but is not limited to, one or more of the following:
12        (1) replacement or modification of lighting
13    components, fixtures, and systems;
14        (2) renewable energy and alternate energy systems;
15        (3) cogeneration systems that produce steam or forms of
16    energy, such as heat or electricity, for use primarily
17    within a building or complex of buildings;
18        (4) devices that reduce water consumption or sewer
19    charges, including water-conserving fixtures, appliances,
20    and equipment, water-conserving landscape irrigation
21    equipment, or the substitution of non-water using
22    fixtures, appliances, and equipment;
23        (5) landscaping measures that reduce watering demands
24    and capture and hold applied water and rainfall, including
25    landscape contouring, including the use of berms, swales,
26    and terraces, the use of soil amendments that increase the

 

 

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1    water-holding capacity of the soil, including compost, and
2    rainwater harvesting equipment and equipment to make use of
3    water collected as part of a storm- water system installed
4    for water quality control;
5        (6) equipment for recycling or reuse of water
6    originating on the premises or from other sources,
7    including treated municipal effluent;
8        (7) equipment needed to capture water from
9    nonconventional, alternate sources, including air
10    conditioning condensate or graywater, for non-potable
11    uses;
12        (8) metering equipment needed to segregate water use in
13    order to identify water conservation opportunities or
14    verify water savings;
15        (9) changes in operation and maintenance practices;
16        (10) indoor air quality improvements that conform to
17    applicable building code requirements;
18        (11) daylighting systems;
19        (12) insulating the building structure or systems in
20    the building;
21        (13) storm windows or doors, caulking or weather
22    stripping, multi-glazed windows or door systems,
23    heat-absorbing or heat-reflective glazed and coated window
24    and door systems, additional glazing, reductions in glass
25    area, or other window and door system modifications that
26    reduce energy consumption;

 

 

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1        (14) automated or computerized energy control systems;
2        (15) heating, ventilation, or air conditioning system
3    modifications or replacements;
4        (16) indoor air quality improvements that conform to
5    applicable building code requirements;
6        (17) energy recovery systems;
7        (18) steam trap improvement programs that reduce
8    operating costs;
9        (19) building operation programs that reduce utility
10    and operating costs including, but not limited to,
11    computerized energy management and consumption tracking
12    programs, staff and occupant training, and other similar
13    activities;
14        (20) any life safety measures that provide long-term
15    operating cost reductions and are in compliance with State
16    and local statute;
17        (21) any life safety measures related to compliance
18    with the federal Americans with Disabilities Act that
19    provide long-term operating cost reductions and are in
20    compliance with State and local statute;
21        (22) a program to reduce energy costs through rate
22    adjustments, load shifting to reduce peak demand, and use
23    of alternative energy suppliers, such as, but not limited
24    to:
25            (A) changes to more favorable rate schedules; and
26            (B) negotiation of lower rates, same supplier or

 

 

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1        new suppliers, where applicable; and
2            (C) auditing of energy service billing and meters;
3        (23) services to reduce utility costs by identifying
4    utility errors and optimizing existing rate schedules
5    under which service is provided; and
6        (24) any other installation, modification of
7    installation, or remodeling of building infrastructure
8    improvements that produce utility or operational cost
9    savings for their appointed functions in compliance with
10    applicable State and local building codes.
11    "Energy performance contract" or "energy services
12agreement" means a contract between the governmental unit and a
13qualified energy service provider for evaluation,
14recommendation, and implementation of one or more cost-savings
15measures. A performance contract may be structured as either:
16        (1) a guaranteed energy savings performance contract,
17    which shall include, at a minimum, the design and
18    installation of equipment, and, if applicable, operation
19    and maintenance of any of the measures implemented, and
20    guaranteed annual savings which must meet or exceed the
21    total annual contract payments made by the governmental
22    unit for that contract, including financing charges to be
23    incurred by the governmental unit over the life of the
24    contract; or
25        (2) a shared savings contract, which shall include
26    provisions mutually agreed upon by the governmental unit

 

 

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1    and the qualified provider or qualified energy service
2    company as to the negotiated rate of payments based upon
3    energy and operational cost-savings and a stipulated
4    maximum energy consumption level over the life of the
5    contract.
6    "Governmental unit" means any State agency, authority, or
7any political subdivision of State or local government,
8including, but not limited to, county, city, township, village
9or municipal government, local school districts and
10institutions of higher education, any State-supported
11institution, or a joint action agency composed of political
12subdivisions.
13    "Investment grade audit" means a study by the qualified
14energy services provider selected for a particular energy
15performance contract project which includes detailed
16descriptions of the improvements recommended for the project,
17the estimated costs of the improvements, and the utility and
18operations and maintenance cost-savings projected to result
19from the recommended improvements.
20    "Operation and maintenance cost-savings" means a
21measurable decrease in operation and maintenance costs, and
22future replacement expenditures, that are a direct result of
23the implementation of one or more utility cost-savings
24measures. These savings shall be calculated in comparison with
25an established baseline of operation and maintenance costs.
26    "Person" means any corporate or non-corporate entity or

 

 

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1individual of any type.
2    "Public building" means any structure, building, or
3facility, including its equipment, furnishings, or appliances
4that is owned or operated by a governmental unit.
5    "Qualified energy service provider" means a person with a
6record of successful energy performance contract projects or a
7person who: (1) is experienced in the design, implementation,
8and installation of energy efficiency and facility improvement
9measures; (2) has the technical capabilities to ensure such
10measures generate energy and operational cost-savings; and (3)
11has the ability to secure the financing necessary to support
12energy savings guarantees.
13    "Utility cost-savings" means any utility expenses that are
14eliminated or avoided on a long-term basis as a result of
15equipment installed or modified, or services performed by a
16qualified energy service provider. "Utility cost-savings" does
17not include merely shifting personnel costs or similar
18short-term cost-savings.
 
19    Section 15. Authorization.
20    (a) Each governmental unit shall implement cost-effective
21conservation improvements and maintain efficient operation of
22its facilities in order to minimize energy consumption and
23related environmental impacts, and reduce operating costs.
24Each governmental unit shall undertake an energy audit and
25implement cost-effective conservation measures. Energy

 

 

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1performance contracting shall be the preferred method for
2completing energy audits and implementing cost-effective
3conservation measures.
4    (b) Any governmental unit may enter into an energy
5performance contract with a qualified energy service provider
6to produce utility savings or operating and maintenance cost
7savings. Cost-savings measures implemented under such
8contracts shall comply with State or local building codes. Any
9governmental unit may implement other capital improvements in
10conjunction with a performance contract so long as the measures
11that are being implemented to achieve energy and operations and
12maintenance cost-savings are a significant portion of an
13overall project. A governmental unit may enter into an energy
14savings performance contract for a period of more than one year
15only if the governmental unit finds that the amount the
16governmental unit would spend on the energy or water
17conservation measures will not exceed the amount to be saved in
18energy, water, wastewater, and operating costs over 20 years
19from the date of installation.
 
20    Section 20. Smart Energy Design Assistance Center (SEDAC).
21    (a) The Smart Energy Design Assistance Center (SEDAC) based
22at the University of Illinois at Urbana-Champaign is hereby
23designated to be the lead agency for the development and
24promotion of a program of performance contracts in governmental
25units. SEDAC will coordinate its activities with the Capital

 

 

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1Development Board. SEDAC, under the direction of the Governor,
2will have the following duties with respect to this program:
3        (1) assistance to the Capital Development Board to
4    assemble a list of qualified energy service providers and
5    to negotiate master service contracts and pricing
6    schedules with such qualified energy service providers;
7        (2) development of a standardized energy performance
8    contract process and standard energy performance contract
9    documents, including request for qualifications, request
10    for proposals, investment grade audit contract, energy
11    services agreement, including the form of the project
12    savings guarantee, and project financing agreement; and
13        (3) promotion of the energy performance contract
14    program to all governmental units.
15    (b) SEDAC shall establish guidelines and an approval
16process for awarding energy performance contracts. The
17guidelines adopted under this subsection (b) must require that
18the cost-savings projected by a qualified provider be reviewed
19by a licensed professional engineer who has a minimum of 3
20years of experience in energy calculation and review, is not an
21officer or employee of a qualified provider for the contract
22under review, and is not otherwise associated with the
23contract. In conducting the review, the engineer shall focus
24primarily on the proposed improvements from an engineering
25perspective, the methodology and calculations related to cost
26savings, increases in revenue, and, if applicable, efficiency

 

 

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1or accuracy of metering equipment. An engineer who reviews a
2contract shall maintain the confidentiality of any proprietary
3information the engineer acquires while reviewing the
4contract.
5    (c) SEDAC shall assist governmental units in identifying,
6evaluating, and implementing cost-effective conservation
7projects at their facilities. The assistance shall include: (1)
8notifying governmental units of their responsibilities under
9this Act; (2) apprising governmental units of opportunities to
10develop and finance energy performance contracting projects;
11(3) providing technical and analytical support, including
12procurement energy performance contracting services; (4)
13reviewing verification procedures for energy savings; and (5)
14assisting in the structuring and arranging of financing for
15energy performance contracting projects.
16    (d) SEDAC is authorized to fix, charge, and collect
17reasonable fees, not to exceed 2% of the total cost of the
18energy performance contract project, for any administrative
19support and resources or other services provided by SEDAC, or
20its designee, under this subsection (d) from the governmental
21units that use its technical support services. Governmental
22units are authorized to add the costs of these fees to the
23total cost of the energy performance contract.
24    (e) The Governor is encouraged to develop and submit to the
25General Assembly a regular or supplemental budget request for
26the additional funds and staffing required by the Smart Energy

 

 

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1Design Assistance Center to fulfill the duties required under
2this Section.
 
3    Section 25. Selection of a qualified energy service
4provider. The State process of implementing energy performance
5contracts for governmental units shall be as provided in this
6Section.
7    (a) Regarding requests for qualifications, the Capital
8Development Board is authorized to assemble a list of qualified
9energy service providers, in accordance with the provisions of
10the Illinois Procurement Code. The Capital Development Board
11shall attempt to use objective criteria in the selection
12process. The criteria for evaluation shall include substantive
13factors to assess the capability of the qualified energy
14service company or qualified provider in the areas of design,
15engineering, installation, maintenance, and repairs associated
16with performance contracts. The substantive factors shall be as
17follows: (1) experience in conversions to a different energy or
18fuel source, so long as it is associated with a comprehensive
19energy efficiency retrofit; (2) post-installation project
20monitoring, data collection, and reporting of savings; (3)
21overall project experience and qualifications; (4) management
22capability; (5) ability to access long-term financing; (6)
23experience with projects of similar size and scope; and (7)
24other factors determined by the governmental unit to be
25relevant and appropriate and relate to the ability to perform

 

 

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1the project.
2    (b) Regarding requests for proposals, before entering into
3a performance contract under this Section, a governmental unit
4shall issue a request for proposals from up to 3 qualified
5energy service providers. A governmental unit may thereafter
6award the performance contract to the qualified energy service
7company or qualified provider that best meets the needs of the
8governmental unit, which need not be the lowest cost provided.
9A cost-effective feasibility analysis shall be prepared in
10response to the request for proposals. The feasibility analysis
11included in the response to the request for proposals shall
12serve as the selection document for purposes of selecting a
13qualified energy service provider to engage in final contract
14negotiations. Factors to be included in selecting among the
15selected energy service providers include contract terms,
16comprehensiveness of the proposal, comprehensiveness of
17cost-savings measures, experience, quality of technical
18approach, and overall benefits to the governmental unit.
 
19    Section 30. Investment grade audit and contract execution.
20    (a) One qualified energy service provider selected as a
21result of the process provided under subsection (b) of Section
2225 shall prepare an investment grade energy audit, which, upon
23acceptance, shall be part of the final energy performance
24contract or energy services agreement which shall be executed
25with the governmental unit. The investment grade energy audit

 

 

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1shall include estimates of the amounts by which utility
2cost-savings and operation and maintenance cost-savings would
3increase and estimates of all costs of such utility
4cost-savings measures or energy-savings measures, including,
5but not limited to, itemized costs of design, engineering,
6equipment, materials, installation, maintenance, repairs, and
7debt service.
8    (b) Notwithstanding the provisions of subsection (a), if
9after preparation of the investment grade energy audit the
10governmental unit decides not to execute an energy services
11agreement, and the costs and benefits described in the energy
12audit are not materially different from those described in the
13feasibility study submitted in response to the request for
14proposals, then the costs incurred in preparing the investment
15grade energy audit shall be paid to the qualified energy
16service provider by the governmental unit. Otherwise, the costs
17of the investment grade energy audit shall be deemed part of
18the costs of the energy performance contract or energy services
19agreement.
 
20    Section 35. Installment payment and lease-purchase
21agreements.
22    (a) A governmental unit may use designated funds, bonds, or
23master lease for any energy performance contract, including
24purchases using installment payment contracts or
25lease-purchase agreements, so long as that use is consistent

 

 

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1with the purpose of the appropriation.
2    (b) A guaranteed energy performance savings contract may
3provide for financing, including tax-exempt financing, by a
4third party. The contract for third party financing may be
5separate from the energy performance contract. A separate
6contract for third party financing must include a provision
7that the third party financier must not be granted rights or
8privileges that exceed the rights and privileges available to
9the guaranteed energy performance savings contractor.
 
10    Section 40. Payment schedule and savings. Each performance
11contract shall provide that all payments between parties,
12except obligations on termination of the contract before its
13expiration, shall be made over time, and the objective of each
14energy performance contract is implementation of cost-savings
15measures and energy and operational cost-savings.
 
16    Section 45. Term of Contracts. An energy performance
17contract, and payments provided thereunder, may extend beyond
18the fiscal year in which the energy performance contract became
19effective, subject to appropriation of moneys, if required by
20law, for costs incurred in future fiscal years. The energy
21performance contract may extend for a term not to exceed 25
22years. The allowable length of the contract may also reflect
23the useful life of the cost-savings measures. Energy
24performance contracts may provide for payments over a period of

 

 

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1time not to exceed deadlines specified in the energy
2performance contract from the date of the final installation of
3the cost-saving measures.
 
4    Section 50. Allocation of obligations. Subject to
5appropriations as provided in Sections 30 and 35 of this Act,
6each governmental unit shall allocate sufficient moneys for
7each fiscal year to make payment of any amounts payable by the
8governmental unit under performance contracts during that
9fiscal year.
 
10    Section 55. Use of moneys; reconciliation.
11    (a) The governmental unit engaging in the performance
12contract shall retain the savings achieved by entering into the
13performance contract. In no event shall the governmental unit
14utilize those savings to supplant otherwise appropriated funds
15for the governmental unit.
16    (b) Unless otherwise provided by law or ordinance, a
17governmental unit may use funds designated for operating and
18capital expenditures or utilities for any performance
19contract, including, without limitation, contracts entered
20into under Section 25 of this Act.
21    (c) The energy performance contract may provide that
22reconciliation of the amounts owed under an energy performance
23contract shall occur in a period beyond one year with final
24reconciliation occurring within the term of the performance

 

 

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1contract.
2    (d) The energy performance contract shall require the
3qualified provider to provide to the governmental unit an
4annual reconciliation of the guaranteed energy cost-savings.
5If the reconciliation reveals a shortfall in annual energy cost
6savings, the qualified provider is liable for that shortfall.
7If the reconciliation reveals an excess in annual energy cost
8savings, the excess savings may be used to cover potential
9energy cost-savings shortages in subsequent contract years.
 
10    Section 60. Monitoring; reports.
11    (a) During the term of each energy performance contract,
12the qualified energy service company or qualified provider
13shall monitor the reductions in energy consumption and
14cost-savings attributable to the cost-savings measures
15installed under the performance contract, and shall, no less
16than annually, prepare and provide a report to the governmental
17unit documenting the performance of the cost-savings measures
18to the governmental unit.
19    (b) The qualified provider or qualified energy service
20company and governmental unit may agree to make modifications
21in calculating savings based on any of the following
22occurrences:
23        (1) subsequent material change to the baseline energy
24    consumption identified at the beginning of the performance
25    contract;

 

 

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1        (2) changes in utility rates;
2        (3) changes in the number of days in the utility
3    billing cycle;
4        (4) changes in the total square footage of the
5    building;
6        (5) changes in the operational schedule of the
7    facility;
8        (6) changes in facility temperature;
9        (7) material change in the weather;
10        (8) material changes in the amount of equipment or
11    lighting used at the facility; or
12        (9) any other change which reasonably would be expected
13    to modify energy use or energy costs.
14    (c) For all projects carried out under this Act, the
15governmental unit shall report the name of the project, the
16project host, the investment on the project, and the expected
17energy savings to the Illinois Commerce Commission, and shall
18file with the Illinois Commerce Commission a copy of all
19reconciliation reports delivered under this subsection (c).
20The Illinois Commerce Commission may report energy savings from
21these projects to the federal Energy Information
22Administration under the Energy Policy Act of 1992 reporting
23standards.
 
24    Section 65. Contingency provisions. Performance contracts
25shall include contingency provisions in the event that actual

 

 

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1savings do not meet predicted savings
 
2    Section 70. Use of savings from performance contracts.
3Governmental units may direct savings realized under the
4performance contract to contract payment and other expenses as
5they deem necessary. Governmental units are encouraged to
6reinvest savings whenever practical into cost-savings
7measures, so long as the governmental unit is satisfying all
8obligations under the performance contract.
 
9    Section 75. Act takes precedence; repeal of prior
10conflicting statutes. In case of any conflict between the
11provisions of this Act and any other law, the provisions of
12this Act shall prevail and control. The provisions of any
13statute enacted prior to this Act which are inconsistent with
14this Act are hereby repealed. The Attorney General shall
15consult with the Smart Energy Design Assistance Center (SEDAC)
16in construing this Section.
 
17    Section 100. The Illinois Procurement Code is amended by
18changing Sections 20-60 and 40-25 as follows:
 
19    (30 ILCS 500/20-60)
20    Sec. 20-60. Duration of contracts.
21    (a) Maximum duration. A contract may be entered into for
22any period of time deemed to be in the best interests of the

 

 

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1State but not exceeding 10 years inclusive, beginning January
21, 2010, of proposed contract renewals. Third parties may lease
3State-owned dark fiber networks for any period of time deemed
4to be in the best interest of the State, but not exceeding 20
5years. The length of a lease for real property or capital
6improvements shall be in accordance with the provisions of
7Section 40-25. The length of energy conservation program
8contracts or energy savings contracts or leases shall be in
9accordance with the provisions of Section 45 of the Energy
10Performance Contracting Act 25-45. A contract for bond or
11mortgage insurance awarded by the Illinois Housing Development
12Authority, however, may be entered into for any period of time
13less than or equal to the maximum period of time that the
14subject bond or mortgage may remain outstanding.
15    (b) Subject to appropriation. All contracts made or entered
16into shall recite that they are subject to termination and
17cancellation in any year for which the General Assembly fails
18to make an appropriation to make payments under the terms of
19the contract.
20    (c) The chief procurement officer shall file a proposed
21extension or renewal of a contract with the Procurement Policy
22Board prior to entering into any extension or renewal if the
23cost associated with the extension or renewal exceeds $249,999.
24The Procurement Policy Board may object to the proposed
25extension or renewal within 30 calendar days and require a
26hearing before the Board prior to entering into the extension

 

 

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1or renewal. If the Procurement Policy Board does not object
2within 30 calendar days or takes affirmative action to
3recommend the extension or renewal, the chief procurement
4officer may enter into the extension or renewal of a contract.
5This subsection does not apply to any emergency procurement,
6any procurement under Article 40, or any procurement exempted
7by Section 1-10(b) of this Code. If any State agency contract
8is paid for in whole or in part with federal-aid funds, grants,
9or loans and the provisions of this subsection would result in
10the loss of those federal-aid funds, grants, or loans, then the
11contract is exempt from the provisions of this subsection in
12order to remain eligible for those federal-aid funds, grants,
13or loans, and the State agency shall file notice of this
14exemption with the Procurement Policy Board prior to entering
15into the proposed extension or renewal. Nothing in this
16subsection permits a chief procurement officer to enter into an
17extension or renewal in violation of subsection (a). By August
181 each year, the Procurement Policy Board shall file a report
19with the General Assembly identifying for the previous fiscal
20year (i) the proposed extensions or renewals that were filed
21with the Board and whether the Board objected and (ii) the
22contracts exempt from this subsection.
23    (d) Notwithstanding the provisions of subsection (a) of
24this Section, the Department of Innovation and Technology may
25enter into leases for dark fiber networks for any period of
26time deemed to be in the best interests of the State but not

 

 

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1exceeding 20 years inclusive. The Department of Innovation and
2Technology may lease dark fiber networks from third parties
3only for the primary purpose of providing services to (i) to
4the offices of Governor, Lieutenant Governor, Attorney
5General, Secretary of State, Comptroller, or Treasurer and
6State agencies, as defined under Section 5-15 of the Civil
7Administrative Code of Illinois or (ii) for anchor
8institutions, as defined in Section 7 of the Illinois Century
9Network Act. Dark fiber network lease contracts shall be
10subject to all other provisions of this Code and any applicable
11rules or requirements, including, but not limited to,
12publication of lease solicitations, use of standard State
13contracting terms and conditions, and approval of vendor
14certifications and financial disclosures.
15    (e) As used in this Section, "dark fiber network" means a
16network of fiber optic cables laid but currently unused by a
17third party that the third party is leasing for use as network
18infrastructure.
19(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;
20revised 10-11-18.)
 
21    (30 ILCS 500/40-25)
22    (Text of Section before amendment by P.A. 100-1047)
23    Sec. 40-25. Length of leases.
24    (a) Maximum term. Leases shall be for a term not to exceed
2510 years inclusive, beginning January, 1, 2010, of proposed

 

 

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1contract renewals and shall include a termination option in
2favor of the State after 5 years. The length of energy
3conservation program contracts or energy savings contracts or
4leases shall be in accordance with the provisions of Section
525-45.
6    (b) Renewal. Leases may include a renewal option. An option
7to renew may be exercised only when a State purchasing officer
8determines in writing that renewal is in the best interest of
9the State and notice of the exercise of the option is published
10in the appropriate volume of the Procurement Bulletin at least
1160 calendar days prior to the exercise of the option.
12    (c) Subject to appropriation. All leases shall recite that
13they are subject to termination and cancellation in any year
14for which the General Assembly fails to make an appropriation
15to make payments under the terms of the lease.
16    (d) Holdover. Beginning January 1, 2010, no lease may
17continue on a month-to-month or other holdover basis for a
18total of more than 6 months. Beginning July 1, 2010, the
19Comptroller shall withhold payment of leases beyond this
20holdover period.
21(Source: P.A. 100-23, eff. 7-6-17.)
 
22    (Text of Section after amendment by P.A. 100-1047)
23    Sec. 40-25. Length of leases.
24    (a) Maximum term. Except as otherwise provided under
25subsection (a-5), leases shall be for a term not to exceed 10

 

 

SB1337- 23 -LRB101 00173 RJF 45173 b

1years inclusive, beginning January, 1, 2010, of proposed
2contract renewals and shall include a termination option in
3favor of the State after 5 years. The length of energy
4conservation program contracts or energy savings contracts or
5leases shall be in accordance with the provisions of Section 45
6of the Energy Performance Contracting Act 25-45.
7    (a-5) Extended term. A lease for real property owned by the
8University of Illinois to be used by the University of Illinois
9at Chicago for an ambulatory surgical center, which would
10include both clinical services and retail space, may exceed 10
11years in length where: (i) the lease requires the lessor to
12make capital improvements in excess of $100,000; and (ii) the
13Board of Trustees of the University of Illinois determines a
14term of more than 10 years is necessary and is in the best
15interest of the University. A lease under this subsection (a-5)
16may not exceed 30 years in length.
17    (b) Renewal. Leases may include a renewal option. An option
18to renew may be exercised only when a State purchasing officer
19determines in writing that renewal is in the best interest of
20the State and notice of the exercise of the option is published
21in the appropriate volume of the Procurement Bulletin at least
2260 calendar days prior to the exercise of the option.
23    (c) Subject to appropriation. All leases shall recite that
24they are subject to termination and cancellation in any year
25for which the General Assembly fails to make an appropriation
26to make payments under the terms of the lease.

 

 

SB1337- 24 -LRB101 00173 RJF 45173 b

1    (d) Holdover. Beginning January 1, 2010, no lease may
2continue on a month-to-month or other holdover basis for a
3total of more than 6 months. Beginning July 1, 2010, the
4Comptroller shall withhold payment of leases beyond this
5holdover period.
6(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19.)
 
7    (30 ILCS 500/25-45 rep.)
8    Section 105. The Illinois Procurement Code is amended by
9repealing Section 25-45.
 
10    Section 995. No acceleration or delay. Where this Act makes
11changes in a statute that is represented in this Act by text
12that is not yet or no longer in effect (for example, a Section
13represented by multiple versions), the use of that text does
14not accelerate or delay the taking effect of (i) the changes
15made by this Act or (ii) provisions derived from any other
16Public Act.
 
17    Section 999. Effective date. This Act takes effect upon
18becoming law.