97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1504

 

Introduced , by Rep. Brandon W. Phelps

 

SYNOPSIS AS INTRODUCED:
 
30 ILCS 500/20-5
30 ILCS 500/25-45
30 ILCS 500/Art. 32 heading new
30 ILCS 500/32-3 new
30 ILCS 500/32-4 new
30 ILCS 500/32-5 new
30 ILCS 500/32-10 new
30 ILCS 500/32-15 new
30 ILCS 500/32-20 new
30 ILCS 500/32-25 new

    Amends the Illinois Procurement Code. Provides that the Illinois Department of Corrections and the Capital Development Board shall enter into a contract with a qualified provider to reduce energy usage and carbon footprints of State correctional facilities. Creates a new Article in the Illinois Procurement Code concerning the procurement of energy conservation measures. Provides that a State purchasing officer shall submit a request for proposals for a guaranteed energy savings contract and shall evaluate any sealed proposal from a qualified provider. Provides that sealed proposals must be opened by a State purchasing officer at a public opening. Provides that a State purchasing officer shall select the qualified provider that best meets the needs of the State agency. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1504LRB097 10230 PJG 50426 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 5. The Illinois Procurement Code is amended by
5changing Sections 20-5 and 25-45 and by adding the heading of
6Article 32 and Sections 32-3, 32-4, 32-5, 32-10, 32-15, 32-20,
7and 32-25 as follows:
 
8    (30 ILCS 500/20-5)
9    Sec. 20-5. Method of source selection. Unless otherwise
10authorized by law, all State contracts shall be awarded by
11competitive sealed bidding, in accordance with Section 20-10,
12except as provided in Sections 20-15, 20-20, 20-25, 20-30,
1320-32, 20-35, 30-15, and 40-20.
14(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
15    (30 ILCS 500/25-45)
16    Sec. 25-45. Energy conservation program. State purchasing
17officers may enter into energy conservation program contracts
18that provide for utility cost savings. The chief procurement
19officer shall promulgate and adopt rules in accordance with
20Article 32 of this Act for the implementation of this Section.
21    For the purposes of promoting energy conservation and
22carbon reduction in State owned facilities, the State

 

 

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1purchasing officer of the Illinois Department of Corrections
2(IDOC) shall work in conjunction with the State purchasing
3officer of the Capital Development Board (CDB) to follow the
4procedure prescribed in Article 32 of this Act for the
5procurement of guaranteed energy saving contracts. After
6evaluating proposals, IDOC shall enter into a contract with the
7qualified provider to reduce energy usage and carbon footprints
8of the correctional facilities administered by IDOC. If, in the
9judgment of IDOC and CDB, it is in the State's best interest to
10award contracts to more than one qualified provider, they may
11do so. The State shall award any contracts under this paragraph
12by March 1, 2012. This paragraph is no longer operative after
13January 1, 2013.
14(Source: P.A. 90-572, eff. date - See Sec. 99-5.)
 
15    (30 ILCS 500/Art. 32 heading new)
16
ARTICLE 32. ENERGY CONSERVATION MEASURES

 
17    (30 ILCS 500/32-3 new)
18    Sec. 32-3. Applicable laws. Other State laws and related
19administrative requirements apply to this Article, including,
20but not limited to, the following laws and related
21administrative requirements: the Illinois Human Rights Act,
22the Prevailing Wage Act, the Public Construction Bond Act, the
23Public Works Preference Act, the Employment of Illinois Workers
24on Public Works Act, the Freedom of Information Act, the Open

 

 

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1Meetings Act, the Illinois Architecture Practice Act of 1989,
2the Professional Engineering Practice Act of 1989, the
3Structural Engineering Practice Act of 1989, and the Contractor
4Unified License and Permit Bond Act.
 
5    (30 ILCS 500/32-4 new)
6    Sec. 32-4. Applicability. In order to protect the integrity
7of historic buildings, no provision of this Article shall be
8interpreted to require the implementation of energy
9conservation measures that conflict with respect to any
10property eligible for, nominated to, or entered on the National
11Register of Historic Places, pursuant to the National Historic
12Preservation Act of 1966, or the Illinois Register of Historic
13Places, pursuant to the Illinois Historic Preservation Act.
 
14    (30 ILCS 500/32-5 new)
15    Sec. 32-5. Definitions. As used in this Article, unless the
16context clearly requires otherwise:
17    "Energy conservation measure" means any improvement,
18repair, alteration, or betterment of any building or facility
19owned or operated by the State or any equipment, fixture, or
20furnishing to be added to or used in any such building or
21facility, subject to all applicable building codes, that is
22designed to reduce energy consumption or operating costs, and
23may include, without limitation, one or more of the following:
24        (1) Insulation of the building structure or systems

 

 

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1    within the building.
2        (2) Storm windows or doors, caulking or
3    weatherstripping, multiglazed windows or doors, heat
4    absorbing or heat reflective glazed and coated window or
5    door systems, additional glazing, reductions in glass
6    area, or other window and door system modifications that
7    reduce energy consumption.
8        (3) Automated or computerized energy control systems.
9        (4) Heating, ventilating, or air conditioning system
10    modifications or replacements.
11        (5) Replacement or modification of lighting fixtures
12    to increase the energy efficiency of the lighting system
13    without increasing the overall illumination of a facility,
14    unless an increase in illumination is necessary to conform
15    to the applicable State or local building code for the
16    lighting system after the proposed modifications are made.
17        (6) Energy recovery systems.
18        (7) Energy conservation measures that provide
19    long-term operating cost reductions.
20    "Guaranteed energy savings contract" means a contract for:
21(i) the implementation of an energy audit, data collection, and
22other related analyses preliminary to the undertaking of energy
23conservation measures; (ii) the evaluation and recommendation
24of energy conservation measures; (iii) the implementation of
25one or more energy conservation measures; and (iv) the
26implementation of project monitoring and data collection to

 

 

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1verify post-installation energy consumption and energy-related
2operating costs. The contract shall provide that all payments,
3except obligations on termination of the contract before its
4expiration, are to be made over time and that the savings are
5guaranteed to the extent necessary to pay the costs of the
6energy conservation measures. Energy savings may include
7energy reduction and offsetting sources of renewable energy
8funds including renewable energy credits and carbon credits.
9    "Qualified provider" means a person or business whose
10employees are experienced and trained in the design,
11implementation, or installation of energy conservation
12measures. The minimum training required for any person or
13employee under this paragraph shall be the satisfactory
14completion of at least 40 hours of course instruction dealing
15with energy conservation measures. A qualified provider to whom
16the contract is awarded shall give a sufficient bond to the
17State agency for its faithful performance.
18    "Request for proposals" means a competitive selection
19achieved by negotiated procurement. The request for proposals
20shall be announced through public notice, at least 14 days
21before the request date, in the Illinois Procurement Bulletin,
22from the State purchasing officer that will administer the
23program, requesting innovative solutions and proposals for
24energy conservation measures. Proposals submitted shall be
25sealed. The request for proposals shall include all of the
26following:

 

 

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1        (1) The name and address of the State agency.
2        (2) The name, address, title, and phone number of the
3    State purchasing officer.
4        (3) Notice indicating that the State agency is
5    requesting qualified providers to propose energy
6    conservation measures through a guaranteed energy savings
7    contract.
8        (4) The date, time, and place where proposals must be
9    received.
10        (5) The evaluation criteria for assessing the
11    proposals.
12        (6) Any other stipulations and clarifications the
13    State agency may require.
 
14    (30 ILCS 500/32-10 new)
15    Sec. 32-10. Evaluation of proposal. Before entering into a
16guaranteed energy savings contract under Section 32-15, a State
17purchasing officer shall submit a request for proposals. The
18State purchasing officer shall evaluate any sealed proposal
19from a qualified provider. The evaluation shall analyze the
20estimates of all costs of installations, modifications, or
21remodeling, including, without limitation, costs of a
22pre-installation energy audit or analysis, design,
23engineering, installation, maintenance, repairs, debt service,
24conversions to a different energy or fuel source, or
25post-installation project monitoring, data collection, and

 

 

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1reporting. The evaluation shall include a detailed analysis of
2whether either the energy consumed or the operating costs, or
3both, will be reduced. If technical assistance is not available
4by a licensed architect or registered professional engineer on
5the State agency's staff, then the evaluation of the proposal
6shall be done by a registered professional engineer or
7architect who is retained by the State agency. Any licensed
8architect or registered professional engineer evaluating a
9proposal under this Section may not have any financial or
10contractual relationship with a qualified provider or other
11source that would constitute a conflict of interest. The State
12agency may pay a reasonable fee for evaluation of the proposal
13or include the fee as part of the payments made under Section
1432-20.
 
15    (30 ILCS 500/32-15 new)
16    Sec. 32-15. Award of guaranteed energy savings contract.
17Sealed proposals must be opened by the State purchasing officer
18at a public opening at which the contents of the proposals must
19be announced. Each person or entity submitting a sealed
20proposal must receive at least 10 days notice of the time and
21place of the opening. The State purchasing officer shall select
22the qualified provider that best meets the needs of the State
23agency. The State agency shall provide public notice of (i) the
24meeting at which it proposes to award a guaranteed energy
25savings contract, (ii) the names of the parties to the proposed

 

 

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1contract, and (iii) the purpose of the contract. The public
2notice shall be made at least 10 days prior to the meeting.
3After evaluating the proposals under Section 32-10, a State
4purchasing officer may enter into a guaranteed energy savings
5contract with a qualified provider if he or she finds that the
6amount the State agency would spend on the energy conservation
7measures recommended in the proposal would not exceed the
8amount to be saved in either energy or operational costs, or
9both, within a 10-year period from the date of installation, if
10the recommendations in the proposal are followed.
 
11    (30 ILCS 500/32-20 new)
12    Sec. 32-20. Guarantee. The guaranteed energy savings
13contract shall include a written guarantee of the qualified
14provider that either the energy or operational cost savings, or
15both, will meet or exceed within 20 years the costs of the
16energy conservation measures. The qualified provider shall
17reimburse the State agency for any shortfall of guaranteed
18energy savings projected in the contract. A qualified provider
19shall provide a sufficient bond to the State agency for the
20installation and the faithful performance of all the measures
21included in the contract. The guaranteed energy savings
22contract may provide for payments over a period of time, not to
23exceed 20 years from the date of the final installation of the
24measures.
 

 

 

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1    (30 ILCS 500/32-25 new)
2    Sec. 32-25. Operational and energy cost savings. The State
3agency shall document the operational and energy cost savings
4specified in the guaranteed energy savings contract and shall
5designate and appropriate that amount for an annual payment of
6the contract. If the annual energy savings are less than
7projected under the guaranteed energy savings contract, the
8qualified provider shall pay the difference as provided in
9Section 32-20.
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.