101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3330

 

Introduced 2/14/2020, 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conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed.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 17701 RJF 67128 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3330LRB101 17701 RJF 67128 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 the State, including public
8institutions of higher education and public community colleges
9located in this State. "Governmental unit" does not include
10units of local government, including counties, cities,
11townships, villages, municipal governments, or local school
12districts. Nothing in this Act prevents the Smart Energy Design
13Assistance Center as the lead agency for the development and
14promotion of a program from contracting or partnering with
15units of local government or local school districts throughout
16the State on a voluntary basis.
17    "Investment grade audit" means a study by the qualified
18energy services provider selected for a particular energy
19performance contract project which includes detailed
20descriptions of the improvements recommended for the project,
21the estimated costs of the improvements, and the utility and
22operations and maintenance cost-savings projected to result
23from the recommended improvements.
24    "Operation and maintenance cost-savings" means a
25measurable decrease in operation and maintenance costs, and
26future replacement expenditures, that are a direct result of

 

 

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

 

 

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

 

 

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

 

 

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1contract. In conducting the review, the engineer shall focus
2primarily on the proposed improvements from an engineering
3perspective, the methodology and calculations related to cost
4savings, increases in revenue, and, if applicable, efficiency
5or accuracy of metering equipment. An engineer who reviews a
6contract shall maintain the confidentiality of any proprietary
7information the engineer acquires while reviewing the
8contract.
9    (c) SEDAC shall assist governmental units in identifying,
10evaluating, and implementing cost-effective conservation
11projects at their facilities. The assistance shall include: (1)
12notifying governmental units of their responsibilities under
13this Act; (2) apprising governmental units of opportunities to
14develop and finance energy performance contracting projects;
15(3) providing technical and analytical support, including
16procurement energy performance contracting services; (4)
17reviewing verification procedures for energy savings; and (5)
18assisting in the structuring and arranging of financing for
19energy performance contracting projects.
20    (d) SEDAC is authorized to fix, charge, and collect
21reasonable fees, not to exceed 2% of the total cost of the
22energy performance contract project, for any administrative
23support and resources or other services provided by SEDAC, or
24its designee, under this subsection (d) from the governmental
25units that use its technical support services. Governmental
26units are authorized to add the costs of these fees to the

 

 

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1total cost of the energy performance contract.
2    (e) The Governor is encouraged to develop and submit to the
3General Assembly a regular or supplemental budget request for
4the additional funds and staffing required by the Smart Energy
5Design Assistance Center to fulfill the duties required under
6this Section.
 
7    Section 25. Selection of a qualified energy service
8provider. The State process of implementing energy performance
9contracts for governmental units shall be as provided in this
10Section.
11    (a) Regarding requests for qualifications, the Capital
12Development Board is authorized to assemble a list of qualified
13energy service providers, in accordance with the provisions of
14the Illinois Procurement Code. The Capital Development Board
15shall attempt to use objective criteria in the selection
16process. The criteria for evaluation shall include substantive
17factors to assess the capability of the qualified energy
18service company or qualified provider in the areas of design,
19engineering, installation, maintenance, and repairs associated
20with performance contracts. The substantive factors shall be as
21follows: (1) experience in conversions to a different energy or
22fuel source, so long as it is associated with a comprehensive
23energy efficiency retrofit; (2) post-installation project
24monitoring, data collection, and reporting of savings; (3)
25overall project experience and qualifications; (4) management

 

 

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1capability; (5) ability to access long-term financing; (6)
2experience with projects of similar size and scope; and (7)
3other factors determined by the governmental unit to be
4relevant and appropriate and relate to the ability to perform
5the project.
6    (b) Regarding requests for proposals, before entering into
7a performance contract under this Section, a governmental unit
8shall issue a request for proposals from up to 3 qualified
9energy service providers. A governmental unit may thereafter
10award the performance contract to the qualified energy service
11company or qualified provider that best meets the needs of the
12governmental unit, which need not be the lowest cost provided.
13A cost-effective feasibility analysis shall be prepared in
14response to the request for proposals. The feasibility analysis
15included in the response to the request for proposals shall
16serve as the selection document for purposes of selecting a
17qualified energy service provider to engage in final contract
18negotiations. Factors to be included in selecting among the
19selected energy service providers include contract terms,
20comprehensiveness of the proposal, comprehensiveness of
21cost-savings measures, experience, quality of technical
22approach, and overall benefits to the governmental unit.
 
23    Section 30. Investment grade audit and contract execution.
24    (a) One qualified energy service provider selected as a
25result of the process provided under subsection (b) of Section

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1occurrences:
2        (1) subsequent material change to the baseline energy
3    consumption identified at the beginning of the performance
4    contract;
5        (2) changes in utility rates;
6        (3) changes in the number of days in the utility
7    billing cycle;
8        (4) changes in the total square footage of the
9    building;
10        (5) changes in the operational schedule of the
11    facility;
12        (6) changes in facility temperature;
13        (7) material change in the weather;
14        (8) material changes in the amount of equipment or
15    lighting used at the facility; or
16        (9) any other change which reasonably would be expected
17    to modify energy use or energy costs.
18    (c) For all projects carried out under this Act, the
19governmental unit shall report the name of the project, the
20project host, the investment on the project, and the expected
21energy savings to the Illinois Commerce Commission, and shall
22file with the Illinois Commerce Commission a copy of all
23reconciliation reports delivered under this subsection (c).
24The Illinois Commerce Commission may report energy savings from
25these projects to the federal Energy Information
26Administration under the Energy Policy Act of 1992 reporting

 

 

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1standards.
 
2    Section 65. Contingency provisions. Performance contracts
3shall include contingency provisions in the event that actual
4savings do not meet predicted savings
 
5    Section 70. Use of savings from performance contracts.
6Governmental units may direct savings realized under the
7performance contract to contract payment and other expenses as
8they deem necessary. Governmental units are encouraged to
9reinvest savings whenever practical into cost-savings
10measures, so long as the governmental unit is satisfying all
11obligations under the performance contract.
 
12    Section 75. Act takes precedence; repeal of prior
13conflicting statutes. In case of any conflict between the
14provisions of this Act and any other law, the provisions of
15this Act shall prevail and control. The provisions of any
16statute enacted prior to this Act which are inconsistent with
17this Act are hereby repealed. The Attorney General shall
18consult with the Smart Energy Design Assistance Center (SEDAC)
19in construing this Section.
 
20    Section 100. The Illinois Procurement Code is amended by
21changing Sections 20-60 and 40-25 as follows:
 

 

 

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1    (30 ILCS 500/20-60)
2    Sec. 20-60. Duration of contracts.
3    (a) Maximum duration. A contract may be entered into for
4any period of time deemed to be in the best interests of the
5State but not exceeding 10 years inclusive, beginning January
61, 2010, of proposed contract renewals. Third parties may lease
7State-owned dark fiber networks for any period of time deemed
8to be in the best interest of the State, but not exceeding 20
9years. The length of a lease for real property or capital
10improvements shall be in accordance with the provisions of
11Section 40-25. The length of energy conservation program
12contracts or energy savings contracts or leases shall be in
13accordance with the provisions of Section 45 of the Energy
14Performance Contracting Act 25-45. A contract for bond or
15mortgage insurance awarded by the Illinois Housing Development
16Authority, however, may be entered into for any period of time
17less than or equal to the maximum period of time that the
18subject bond or mortgage may remain outstanding.
19    (b) Subject to appropriation. All contracts made or entered
20into shall recite that they are subject to termination and
21cancellation in any year for which the General Assembly fails
22to make an appropriation to make payments under the terms of
23the contract.
24    (c) The chief procurement officer shall file a proposed
25extension or renewal of a contract with the Procurement Policy
26Board prior to entering into any extension or renewal if the

 

 

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1cost associated with the extension or renewal exceeds $249,999.
2The Procurement Policy Board may object to the proposed
3extension or renewal within 30 calendar days and require a
4hearing before the Board prior to entering into the extension
5or renewal. If the Procurement Policy Board does not object
6within 30 calendar days or takes affirmative action to
7recommend the extension or renewal, the chief procurement
8officer may enter into the extension or renewal of a contract.
9This subsection does not apply to any emergency procurement,
10any procurement under Article 40, or any procurement exempted
11by Section 1-10(b) of this Code. If any State agency contract
12is paid for in whole or in part with federal-aid funds, grants,
13or loans and the provisions of this subsection would result in
14the loss of those federal-aid funds, grants, or loans, then the
15contract is exempt from the provisions of this subsection in
16order to remain eligible for those federal-aid funds, grants,
17or loans, and the State agency shall file notice of this
18exemption with the Procurement Policy Board prior to entering
19into the proposed extension or renewal. Nothing in this
20subsection permits a chief procurement officer to enter into an
21extension or renewal in violation of subsection (a). By August
221 each year, the Procurement Policy Board shall file a report
23with the General Assembly identifying for the previous fiscal
24year (i) the proposed extensions or renewals that were filed
25with the Board and whether the Board objected and (ii) the
26contracts exempt from this subsection.

 

 

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1    (d) Notwithstanding the provisions of subsection (a) of
2this Section, the Department of Innovation and Technology may
3enter into leases for dark fiber networks for any period of
4time deemed to be in the best interests of the State but not
5exceeding 20 years inclusive. The Department of Innovation and
6Technology may lease dark fiber networks from third parties
7only for the primary purpose of providing services (i) to the
8offices of Governor, Lieutenant Governor, Attorney General,
9Secretary of State, Comptroller, or Treasurer and State
10agencies, as defined under Section 5-15 of the Civil
11Administrative Code of Illinois or (ii) for anchor
12institutions, as defined in Section 7 of the Illinois Century
13Network Act. Dark fiber network lease contracts shall be
14subject to all other provisions of this Code and any applicable
15rules or requirements, including, but not limited to,
16publication of lease solicitations, use of standard State
17contracting terms and conditions, and approval of vendor
18certifications and financial disclosures.
19    (e) As used in this Section, "dark fiber network" means a
20network of fiber optic cables laid but currently unused by a
21third party that the third party is leasing for use as network
22infrastructure.
23(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;
24101-81, eff. 7-12-19.)
 
25    (30 ILCS 500/40-25)

 

 

SB3330- 22 -LRB101 17701 RJF 67128 b

1    Sec. 40-25. Length of leases.
2    (a) Maximum term. Except as otherwise provided under
3subsection (a-5), leases shall be for a term not to exceed 10
4years inclusive, beginning January, 1, 2010, of proposed
5contract renewals and shall include a termination option in
6favor of the State after 5 years. The length of energy
7conservation program contracts or energy savings contracts or
8leases shall be in accordance with the provisions of Section 45
9of the Energy Performance Contracting Act 25-45.
10    (a-5) Extended term. A lease for real property owned by the
11University of Illinois to be used by the University of Illinois
12at Chicago for an ambulatory surgical center, which would
13include both clinical services and retail space, may exceed 10
14years in length where: (i) the lease requires the lessor to
15make capital improvements in excess of $100,000; and (ii) the
16Board of Trustees of the University of Illinois determines a
17term of more than 10 years is necessary and is in the best
18interest of the University. A lease under this subsection (a-5)
19may not exceed 30 years in length.
20    (b) Renewal. Leases may include a renewal option. An option
21to renew may be exercised only when a State purchasing officer
22determines in writing that renewal is in the best interest of
23the State and notice of the exercise of the option is published
24in the appropriate volume of the Procurement Bulletin at least
2530 calendar days prior to the exercise of the option.
26    (c) Subject to appropriation. All leases shall recite that

 

 

SB3330- 23 -LRB101 17701 RJF 67128 b

1they are subject to termination and cancellation in any year
2for which the General Assembly fails to make an appropriation
3to make payments under the terms of the lease.
4    (d) Holdover. Beginning January 1, 2010, no lease may
5continue on a month-to-month or other holdover basis for a
6total of more than 6 months. Beginning July 1, 2010, the
7Comptroller shall withhold payment of leases beyond this
8holdover period.
9(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
10101-426, eff. 1-1-20.)
 
11    (30 ILCS 500/25-45 rep.)
12    Section 105. The Illinois Procurement Code is amended by
13repealing Section 25-45.
 
14    Section 995. No acceleration or delay. Where this Act makes
15changes in a statute that is represented in this Act by text
16that is not yet or no longer in effect (for example, a Section
17represented by multiple versions), the use of that text does
18not accelerate or delay the taking effect of (i) the changes
19made by this Act or (ii) provisions derived from any other
20Public Act.
 
21    Section 999. Effective date. This Act takes effect upon
22becoming law.