103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2119

 

Introduced 2/7/2023, by Rep. Joyce Mason

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/3-14.20  from Ch. 122, par. 3-14.20
105 ILCS 5/19b-1.1  from Ch. 122, par. 19b-1.1
105 ILCS 5/19b-1.2  from Ch. 122, par. 19b-1.2
105 ILCS 5/19b-1.3  from Ch. 122, par. 19b-1.3
105 ILCS 5/19b-1.4  from Ch. 122, par. 19b-1.4
105 ILCS 5/19b-1.5 new
105 ILCS 5/19b-2  from Ch. 122, par. 19b-2
105 ILCS 5/19b-2.1 new
105 ILCS 5/19b-3  from Ch. 122, par. 19b-3
105 ILCS 5/19b-4  from Ch. 122, par. 19b-4
105 ILCS 5/19b-5  from Ch. 122, par. 19b-5
105 ILCS 5/19b-7  from Ch. 122, par. 19b-7
105 ILCS 5/19b-8  from Ch. 122, par. 19b-8
105 ILCS 5/19b-90 new

    Amends the School Code. Provides that a duty of the regional superintendent of schools is to inspect and approve school building plans and specifications for energy conservation measures. In the Article concerning school energy conservation and saving measures, makes changes concerning definitions, the evaluation and submission of guaranteed energy savings contract proposals, performance reviews, the award of a contract, the written guarantee, installment payment contracts and lease purchase agreements, cost savings, available funds, an energy savings template, qualified providers, and the Smart Energy Design Assistance Center.


LRB103 24911 RJT 51245 b

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT
MAY APPLY

 

 

A BILL FOR

 

HB2119LRB103 24911 RJT 51245 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Sections
53-14.20, 19b-1.1, 19b-1.2, 19b-1.3, 19b-1.4, 19b-2, 19b-3,
619b-4, 19b-5, 19b-7, and 19b-8 and by adding Sections 19b-1.5,
719b-2.1, and 19b-90 as follows:
 
8    (105 ILCS 5/3-14.20)   (from Ch. 122, par. 3-14.20)
9    Sec. 3-14.20. Building plans and specifications. To
10inspect the building plans and specifications, including but
11not limited to plans and specifications for the heating,
12ventilating, lighting, seating, water supply, toilets, energy
13conservation measures resulting in building construction,
14renovations, or modifications, and safety against fire of
15public school rooms and buildings submitted to the regional
16superintendent of schools him by school boards, and to approve
17all those which comply substantially with the building code
18authorized in Section 2-3.12.
19    If a municipality or, in the case of an unincorporated
20area, a county or, if applicable, a fire protection district
21wishes to be notified of plans and specifications received by
22a regional office of education for any future construction or
23alteration of a public school facility located within that

 

 

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1entity's jurisdiction, then the entity must register this wish
2with the regional superintendent of schools. Within 10 days
3after the regional superintendent of schools receives the
4plans and specifications from a school board and prior to the
5bidding process, he or she shall notify, in writing, the
6registered municipality and, if applicable, the registered
7fire protection district where the school that is being
8constructed or altered lies that plans and specifications have
9been received. In the case of an unincorporated area, the
10registered county shall be notified. If the municipality, fire
11protection district, or county requests a review of the plans
12and specifications, then the school board shall submit a copy
13of the plans and specifications. The municipality and, if
14applicable, the fire protection district or the county may
15comment in writing on the plans and specifications based on
16the building code authorized in Section 2-3.12, referencing
17the specific code where a discrepancy has been identified, and
18respond back to the regional superintendent of schools within
1915 days after a copy of the plans and specifications have been
20received or, if needed for plan review, such additional time
21as agreed to by the regional superintendent of schools. This
22review must be at no cost to the school district.
23    If such plans and specifications are not approved or
24denied approval by the regional superintendent of schools
25within 3 months after the date on which they are submitted to
26him or her, the school board may submit such plans and

 

 

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1specifications directly to the State Superintendent of
2Education for approval or denial.
3(Source: P.A. 94-225, eff. 7-14-05.)
 
4    (105 ILCS 5/19b-1.1)  (from Ch. 122, par. 19b-1.1)
5    Sec. 19b-1.1. Energy conservation measure. "Energy
6conservation measure" means any improvement, repair,
7alteration, or betterment of any building or facility owned or
8operated by a school district or area vocational center or any
9equipment, fixture, or furnishing to be added to or used in any
10such building or facility, according to plans and
11specifications designed and approved subject to the building
12code authorized in Section 2-3.12 of this Code, that is
13proposed designed to reduce energy consumption or operating
14costs, and may include, without limitation, one or more of the
15following:
16        (1) Insulation of the building structure or systems
17    within the building.
18        (2) Storm windows or doors, caulking or
19    weatherstripping, multiglazed windows or doors, heat
20    absorbing or heat reflective glazed and coated window or
21    door systems, additional glazing, reductions in glass
22    area, or other window and door system modifications that
23    reduce energy operating costs consumption.
24        (3) Automated or computerized energy control systems.
25        (4) Heating, ventilating, or air conditioning system

 

 

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1    modifications or replacements.
2        (5) Replacement or modification of lighting fixtures
3    to increase the energy efficiency of the lighting system
4    without increasing the overall illumination of a facility,
5    unless an increase in illumination is necessary to conform
6    to the applicable State or local building code for the
7    lighting system after the proposed modifications are made.
8        (6) Energy recovery systems.
9        (7) (Blank). Energy conservation measures that provide
10    long-term operating cost reductions.
11    "Energy conservation measure" does not include new
12construction or building additions beyond the square footage
13and footprint of existing buildings or structures, except
14areas required for the primary use of mechanical and
15electrical upgrades or as necessary for the sole use of an
16energy unit installation, such as geothermal or solar array
17equipment. "Energy conservation measure" does not include new
18or additional spaces, such as classrooms, gymnasiums, or
19administrative or common areas, or site renovations, such as
20parking lots, playgrounds, athletic fields, or track and field
21areas. New construction or additions shall be designed and
22constructed in accordance with applicable energy conservation
23laws and codes and may not be included in the calculations of
24any energy savings with respect to a guaranteed energy savings
25contract.
26(Source: P.A. 95-612, eff. 9-11-07.)
 

 

 

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1    (105 ILCS 5/19b-1.2)  (from Ch. 122, par. 19b-1.2)
2    Sec. 19b-1.2. Guaranteed energy savings contract.
3"Guaranteed energy savings contract" means a contract for: (i)
4the implementation of an energy audit, an investment grade
5audit, data collection, and other related analyses preliminary
6to the undertaking of energy conservation measures; (ii) the
7evaluation and recommendation of energy conservation measures;
8(iii) the implementation of one or more energy conservation
9measures; and (iv) the implementation of project monitoring
10and data collection to verify post-installation energy
11consumption and energy-related operating costs. The contract
12shall provide that all payments, except obligations on
13termination of the contract before its expiration, are to be
14made over time and that the savings are guaranteed to the
15extent necessary to pay the costs of the energy conservation
16measures. Energy saving may include energy reduction and
17offsetting sources of renewable energy funds including
18renewable energy credits and carbon credits. A contract may be
19subject to change orders in the ordinary course of a
20construction project but may not be amended to include
21projects not originally included in the request for proposals
22required by Section 19b-1.4 of this Code.
23(Source: P.A. 96-1197, eff. 7-22-10.)
 
24    (105 ILCS 5/19b-1.3)  (from Ch. 122, par. 19b-1.3)

 

 

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1    Sec. 19b-1.3. Qualified provider. "Qualified provider"
2means a person or business whose employees are experienced and
3trained in the design, implementation, or installation of
4energy conservation measures. The minimum training required
5for any person or employee under this Section shall be the
6satisfactory completion of at least 40 hours of course
7instruction dealing with energy conservation measures. A
8person or business may not engage in the practice of
9architecture, engineering, or structural engineering unless
10the person is licensed or the business is registered in
11accordance with the Illinois Architecture Practice Act of
121989, the Professional Engineering Practice Act of 1989, or
13the Structural Engineering Practice Act of 1989 and the rules
14adopted pursuant to those Acts. A person or business may not
15engage in the practice of plumbing unless the person is
16licensed in accordance with the Illinois Plumbing License Law.
17A qualified provider to whom the contract is awarded shall
18give a sufficient bond to the school district or area
19vocational center for its faithful performance.
20(Source: P.A. 92-767, eff. 8-6-02.)
 
21    (105 ILCS 5/19b-1.4)  (from Ch. 122, par. 19b-1.4)
22    Sec. 19b-1.4. Request for proposals. "Request for
23proposals" means a competitive selection achieved by
24negotiated procurement. The request for proposals shall be
25submitted to the administrators of the Capital Development

 

 

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1Board Procurement Bulletin for publication and through at
2least one public notice, at least 30 days before the request
3date in a newspaper published in the district or vocational
4center area, or if no newspaper is published in the district or
5vocational center area, in a newspaper of general circulation
6in the area of the district or vocational center, from a school
7district or area vocational center that will administer the
8program, requesting innovative solutions and proposals for
9energy conservation measures. Proposals submitted shall be
10sealed. The request for proposals shall include all of the
11following:
12        (1) The name and address of the school district or
13    area vocation center.
14        (2) The name, address, title, and phone number of a
15    contact person.
16        (3) Notice indicating that the school district or area
17    vocational center is requesting qualified providers to
18    propose energy conservation measures through a guaranteed
19    energy savings contract.
20        (4) The date, time, and place where proposals must be
21    received.
22        (5) The evaluation criteria for assessing the
23    proposals.
24        (6) Any other stipulations and clarifications the
25    school district or area vocational center may require.
26(Source: P.A. 95-612, eff. 9-11-07; 96-1197, eff. 7-22-10.)
 

 

 

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1    (105 ILCS 5/19b-1.5 new)
2    Sec. 19b-1.5. Energy operating cost. "Energy operating
3cost" means any expenditure paid by a school district or area
4vocational center to a third party for the furnishing of heat,
5cold, power, electricity, water, or light to any building or
6facility owned or operated by a school district or area
7vocational center. "Energy operating cost" shall be directly
8related to the energy consumption costs of a structure paid to
9a utility provider. "Energy operating cost" does not include
10calculations related to general maintenance and custodial
11costs, including, but not limited to, window cleaning, floor
12waxing, carpet vacuuming and cleaning, the mowing of lawns,
13trash removal, playground maintenance, parking lot
14maintenance, and similar costs.
 
15    (105 ILCS 5/19b-2)  (from Ch. 122, par. 19b-2)
16    Sec. 19b-2. Evaluation of proposal; performance review.
17Before entering into a guaranteed energy savings contract
18under Section 19b-3, a school district or area vocational
19center shall submit a request for proposals. The school
20district or area vocational center shall evaluate any sealed
21proposal from a qualified provider. The evaluation shall
22analyze the estimates of all costs of installations,
23modifications or remodeling, including, without limitation,
24costs of a pre-installation energy audit or analysis, design,

 

 

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1engineering, installation, maintenance, repairs, debt service,
2conversions to a different energy or fuel source, or
3post-installation project monitoring, data collection, and
4reporting. The evaluation shall include a detailed analysis of
5whether either the energy consumed or the energy operating
6costs, or both, will be reduced and shall be submitted to the
7administrators of the Capital Development Board for
8publication in the Illinois Procurement Bulletin. If technical
9assistance is not available by a licensed architect or
10registered professional engineer on the school district or
11area vocational center staff, then the evaluation of the
12proposal shall be done by a registered professional engineer
13or architect, who is retained by the school district or area
14vocational center. A licensed architect or registered
15professional engineer evaluating a proposal or reviewing
16contract performance under this Section must certify in
17writing that he or she does not have any financial or
18contractual relationship with a qualified provider or other
19source that would constitute a conflict of interest. The
20school district or area vocational center may pay a reasonable
21fee for evaluation of the proposal or the review of contract
22performance or include the fee as part of the payments made
23under Section 19b-4.
24    Performance reviews shall be conducted by the school board
25of the school district or the governing board of the area
26vocational center at least once every 4 years or at shorter

 

 

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1intervals at the discretion of the school district or area
2vocational center to verify the outcomes of the guaranteed
3energy savings contract and shall include any improvement,
4repair, alteration, or betterment of any building or facility
5owned or operated by the school district or area vocational
6center or any equipment, fixture, or furnishing added to or
7used in any such building or facility. A qualified provider
8may not withhold the disclosure of information related to the
9content of a proposal or the performance of the contract.
10(Source: P.A. 95-612, eff. 9-11-07.)
 
11    (105 ILCS 5/19b-2.1 new)
12    Sec. 19b-2.1. Submission of proposals. Proposals must be
13properly identified. Proposals may not be reviewed until after
14the deadline for submission has passed as set forth in the
15request for proposals. All qualified providers identified by
16the Smart Energy Design Assistance Center (SEDAC), in
17consultation with the Capital Development Board, pursuant to
18subsection (b) of Section 19b-90 of this Code that submit
19proposals shall be disclosed after the deadline for submission
20but not before. Proposals shall identify the names of all
21parties to the proposed contract, including those that may be
22subcontracted during the performance of the contract. A
23proposal must meet all material requirements of the request
24for proposal or the proposal may be rejected as nonresponsive.
25Proposals may be withdrawn prior to evaluation for any cause.

 

 

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1No person or business that contracts with a school district or
2area vocational center to write specifications or otherwise
3provides specifications or assessments for a procurement need
4under this Section shall submit a bid or proposal or receive a
5contract for that procurement need. All projects procured
6under this Section shall comply with Section 2-3.12 of this
7Code and the Health/Life Safety Code for Public Schools set
8forth in 23 Ill. Adm. Code 180, if applicable, and are subject
9to review by the regional office of education.
 
10    (105 ILCS 5/19b-3)  (from Ch. 122, par. 19b-3)
11    Sec. 19b-3. Award of guaranteed energy savings contract.
12Sealed proposals must be opened by a member or employee of the
13school board or governing board of the area vocational center,
14whichever is applicable, at a public opening at which the
15contents of the proposals must be announced. Each person or
16entity submitting a sealed proposal must receive at least 13
17days notice of the time and place of the opening. The school
18district or area vocational center shall select the lowest
19responsive and responsible qualified provider that best meets
20the needs of the district or area vocational center. The
21school district or area vocational center shall provide public
22notice of the meeting at which it proposes to award a
23guaranteed energy savings contract of the names of the parties
24to the proposed contract and of the purpose of the contract.
25The public notice shall be made at least 10 days prior to the

 

 

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1meeting. After evaluating the proposals under Section 19b-2, a
2school district or area vocational center may enter into a
3guaranteed energy savings contract with a qualified provider
4if it finds that the amount it would spend on the energy
5conservation measures recommended in the proposal would not
6exceed the amount to be saved in either energy operating or
7operational costs for the reasonably projected payback period
8for the improvements, as certified by resolution of the school
9district or area vocational center, or 20 years, whichever is
10less, or both, within a 20-year period from the date of
11installation, if the recommendations in the proposal are
12followed. Contracts let or awarded must be submitted to the
13administrators of the Capital Development Board Procurement
14Bulletin for publication. The final contract and any
15subsequent modifications and successful proposals,
16evaluations, and the performance review shall be considered
17public records under the Freedom of Information Act and
18subject to inspection and copying by the public.
19(Source: P.A. 95-612, eff. 9-11-07; 96-1197, eff. 7-22-10.)
 
20    (105 ILCS 5/19b-4)  (from Ch. 122, par. 19b-4)
21    Sec. 19b-4. Guarantee. The guaranteed energy savings
22contract shall include a written guarantee of the qualified
23provider that either the energy operating or operational cost
24savings, or both, will meet or exceed, within the reasonably
25projected payback period for the improvements, as certified by

 

 

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1resolution of the school district or area vocational center,
2or 20 years, whichever is less, the costs of the energy
3conservation measures. The qualified provider shall reimburse
4the school district or area vocational center for any
5shortfall of guaranteed energy savings projected in the
6contract. A qualified provider shall provide a sufficient bond
7to the school district or area vocational center for the
8installation and the faithful performance of all the measures
9included in the contract. The guaranteed energy savings
10contract may provide for payments over a period of time, not to
11exceed the reasonably projected payback period for the
12improvements, as certified by resolution of the school
13district or area vocational center, or 20 years, whichever is
14less, from the date of final installation of the measures.
15(Source: P.A. 92-767, eff. 8-6-02.)
 
16    (105 ILCS 5/19b-5)  (from Ch. 122, par. 19b-5)
17    Sec. 19b-5. Installment payment contract; lease purchase
18agreement. A school district or school districts in
19combination or an area vocational center may enter into an
20installment payment contract or lease purchase agreement with
21a qualified provider or with a third party, as authorized by
22law, for the funding or financing of the purchase and
23installation of energy conservation measures by a qualified
24provider. Every school district or area vocational center may
25issue certificates evidencing the indebtedness incurred

 

 

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1pursuant to the contracts or agreements. Any such contract or
2agreement shall be valid whether or not an appropriation with
3respect thereto is first included in any annual or
4supplemental budget adopted by the school district or area
5vocational center. Each contract or agreement entered into by
6a school district or area vocational center pursuant to this
7Section shall be authorized by official action of the school
8board or governing board of the area vocational center,
9whichever is applicable. The authority granted in this Section
10is in addition to any other authority granted by law.
11    If an energy audit is performed by an energy services
12contractor for a school district within the 3 years
13immediately preceding the solicitation, then the school
14district must publish as a reference document in the
15solicitation for energy conservation measures the following:
16        (1) an executive summary of the energy audit provided
17    that the school district may exclude any proprietary or
18    trademarked information or practices; or
19        (2) the energy audit provided that the school district
20    may redact any proprietary or trademarked information or
21    practices.
22A school district may not withhold the disclosure of
23information related to (i) the school district's energy
24operating costs consumption of energy, (ii) the physical
25condition of the school district's facilities, and (iii) any
26limitations prescribed by the school district.

 

 

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1    The solicitation must include a written disclosure that
2identifies any energy services contractor or qualified
3provider that participated in the preparation of the
4specifications issued by the school district. If no energy
5services contractor or qualified provider participated in the
6preparation of the specifications issued by the school
7district, then the solicitation must include a written
8disclosure that no energy services contractor or qualified
9provider participated in the preparation of the specifications
10for the school district. The written disclosure shall be
11published in the Capital Development Board Procurement
12Bulletin with the Request for Proposal.
13(Source: P.A. 96-1197, eff. 7-22-10; 97-333, eff. 8-12-11.)
 
14    (105 ILCS 5/19b-7)  (from Ch. 122, par. 19b-7)
15    Sec. 19b-7. Energy operating Operational and energy cost
16savings. The school district or area vocational center shall
17document the operational and energy operating cost savings
18specified in the guaranteed energy savings contract and
19designate and appropriate that amount for an annual payment of
20the contract. If the annual energy operating cost savings are
21less than projected under the guaranteed energy savings
22contract, the qualified provider shall pay, within 90 days,
23the difference as provided in Section 19b-4.
24(Source: P.A. 92-767, eff. 8-6-02.)
 

 

 

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1    (105 ILCS 5/19b-8)  (from Ch. 122, par. 19b-8)
2    Sec. 19b-8. Available funds. A school district or area
3vocational center may use funds designated for energy
4operating cost operating or capital expenditures for any
5guaranteed energy savings contract, including purchases using
6installment payment contracts or lease purchase agreements. A
7school district or area vocational center that enters into
8such a contract or agreement may covenant in such contract or
9agreement that payments made thereunder shall be payable from
10the first funds legally available in each fiscal year.
11(Source: P.A. 92-767, eff. 8-6-02.)
 
12    (105 ILCS 5/19b-90 new)
13    Sec. 19b-90. Energy savings template, qualified providers,
14and Smart Energy Design Assistance Center (SEDAC).
15    (a) Any contract under this Section shall utilize the
16template provided for such contracts through a statewide
17organization representing Illinois school business officials
18or follow the requirements in subsections (c) and (d) of this
19Section, at the discretion of the school district or area
20vocational center.
21    (b) The Smart Energy Design Assistance Center (SEDAC)
22based at the University of Illinois at Urbana-Champaign, under
23the direction of the Governor, shall assist school districts
24and area vocational centers in compiling a list of qualified
25energy service providers, with respect to the review of

 

 

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1performance contracts.
2    (c) At the request of a school district or area of
3vocational center, SEDAC shall establish guidelines and an
4approval process for awarding energy performance contracts.
5The guidelines adopted under this subsection (c) must require
6that the cost-savings projected by a qualified provider be
7reviewed by a licensed professional engineer who:
8        (1) has a minimum of 3 years of experience in energy
9    calculation and review;
10        (2) is not an officer or employee of a qualified
11    provider for the contract under review; and
12        (3) is not otherwise associated with the contract.
13    In conducting the review, the engineer shall focus
14primarily on the proposed improvements from an engineering
15perspective and the methodology and calculations related to
16energy-related cost savings.
17    (d) At the request of a school district or area of
18vocational center, SEDAC shall assist a school district or
19area vocational center in identifying, evaluating, and
20implementing cost-effective conservation projects at its
21facilities. The assistance shall include:
22        (1) providing technical and analytical support,
23    including the procurement of energy performance
24    contracting services;
25        (2) reviewing verification procedures for energy
26    savings; and

 

 

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1        (3) assisting in the structuring and arranging of
2    financing for energy performance contracting projects.
3    (e) SEDAC is authorized to fix, charge, and collect
4reasonable fees that will, subject to appropriation, be funded
5by the State.