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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 1-15.30, 20-60, and 40-25 and by adding the
6heading of Article 34 and Sections 34-5, 34-10, 34-15, 34-20,
734-25, 34-30, 34-35, 34-40, 34-45, 34-50, 34-55, and 34-60 as
8follows:
 
9    (30 ILCS 500/1-15.30)
10    Sec. 1-15.30. Contract. "Contract" means all types of State
11agreements, including change orders and renewals, regardless
12of what they may be called, for the procurement, use, or
13disposal of supplies, services, professional or artistic
14services, or construction or for leases of real property,
15whether the State is lessor or lessee, or capital improvements,
16or performance contracting, or guaranteed energy savings
17contracts, and including master contracts, contracts for
18financing through use of installment or lease-purchase
19arrangements, renegotiated contracts, amendments to contracts,
20and change orders.
21(Source: P.A. 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793
22for the effective date of changes made by P.A. 96-795).)
 

 

 

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1    (30 ILCS 500/20-60)
2    Sec. 20-60. Duration of contracts.
3    (a) Maximum duration. A contract, other than a contract
4entered into pursuant to the State University Certificates of
5Participation Act, or guaranteed energy savings contract or a
6performance contract that guarantees energy or operational
7cost savings, may be entered into for any period of time deemed
8to be in the best interests of the State but not exceeding 10
9years inclusive, beginning January 1, 2010, of proposed
10contract renewals. A guaranteed energy savings contract or
11performance contract shall not be entered into for a period of
12time exceeding 20 years, beginning July 1, 2012. The length of
13a lease for real property or capital improvements shall be in
14accordance with the provisions of Section 40-25. A contract for
15bond or mortgage insurance awarded by the Illinois Housing
16Development Authority, however, may be entered into for any
17period of time less than or equal to the maximum period of time
18that the subject 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(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
296-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
3effective date of changes made by P.A. 96-795); 96-920, eff.
47-1-10; 96-1478, eff. 8-23-10.)
 
5    (30 ILCS 500/40-25)
6    Sec. 40-25. Length of leases.
7    (a) Maximum term. Except for installment payment
8performance contracts and guaranteed energy savings contracts
9and performance-based lease purchase agreements, leases Leases
10shall be for a term not to exceed 10 years inclusive, beginning
11January, 1, 2010, of proposed contract renewals and shall
12include a termination option in favor of the State after 5
13years. Installment payment performance contracts and
14guaranteed energy savings contracts and performance-based
15lease purchase agreements that guarantee energy or operational
16cost savings shall be for a term not to exceed 20 years.
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 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

 

 

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1to make payments under the terms of the lease.
2    (d) Holdover. Beginning January 1, 2010, no lease may
3continue on a month-to-month or other holdover basis for a
4total of more than 6 months. Beginning July 1, 2010, the
5Comptroller shall withhold payment of leases beyond this
6holdover period.
7(Source: P.A. 96-15, eff. 6-22-09; 96-795, eff. 7-1-10 (see
8Section 5 of P.A. 96-793 for the effective date of changes made
9by P.A. 96-795).)
 
10    (30 ILCS 500/Art. 34 heading new)
11
ARTICLE 34. PERFORMANCE AND GUARANTEED ENERGY SAVINGS
12
CONTRACTS

 
13    (30 ILCS 500/34-5 new)
14    Sec. 34-5. Definitions. In this Article, the words and
15phrases have the meanings set forth in this Code.
16    "State agency" shall have the definition set forth in this
17Code. The Capital Development Board, created pursuant to 20
18ILCS 3105, shall have the authority to act on behalf of any
19State agency in this Article.
 
20    (30 ILCS 500/34-10 new)
21    Sec. 34-10. Energy conservation measure.
22    "Energy conservation measure" means any improvement,
23repair, alteration, or betterment of any building or facility

 

 

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1owned or operated by a State agency or any equipment, fixture,
2or furnishing to be added to or used in any such building or
3facility that is designed to reduce energy consumption or
4operating costs, and may include, without limitation, one or
5more of the following:
6        (1) Insulation of the building structure or systems
7    within the building.
8        (2) Storm windows or doors, caulking or
9    weather-stripping, multiglazed windows or doors, heat
10    absorbing or heat reflective glazed and coated window or
11    door systems, additional glazing, reductions in glass
12    area, or other window and door system modifications that
13    reduce energy consumption.
14        (3) Automated or computerized energy control systems.
15        (4) Heating, ventilating, or air conditioning system
16    modifications or replacements.
17        (5) Replacement or modification of lighting fixtures
18    to increase the energy efficiency of the lighting system
19    without increasing the overall illumination of a facility,
20    unless an increase in illumination is necessary to conform
21    to the applicable State or local building code for the
22    lighting system after the proposed modifications are made.
23        (6) Energy recovery systems.
24        (7) Energy conservation measures that provide
25    long-term operating cost reductions.
 

 

 

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1    (30 ILCS 500/34-15 new)
2    Sec. 34-15. Performance and guaranteed energy savings
3contract. "Guaranteed energy savings contract" or "performance
4contract" means a contract for: (i) the implementation of an
5energy audit, data collection, and other related analyses
6preliminary to the undertaking of energy conservation
7measures; (ii) the evaluation and recommendation of energy
8conservation measures; (iii) the implementation of one or more
9energy conservation measures; and (iv) the implementation of
10project monitoring and data collection to verify
11post-installation energy consumption and energy-related
12operating costs. The contract shall provide that all payments,
13except obligations on termination of the contract before its
14expiration, are to be made over time and that the savings are
15guaranteed to the extent necessary to pay the costs of the
16energy conservation measures. Energy saving may include energy
17reduction and offsetting sources of renewable energy funds
18including renewable energy credits and carbon credits.
 
19    (30 ILCS 500/34-20 new)
20    Sec. 34-20. Prequalification/qualified providers.
21    (a) Prequalification. The Capital Development Board shall
22establish procedures to prequalify firms or entities seeking to
23provide services for performance and guaranteed energy savings
24contracts, and insure such firms are qualified providers of
25such services.

 

 

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1    (b) Qualified provider. "Qualified provider" means a
2person or business whose employees are experienced and trained
3in the design, implementation, or installation of energy
4conservation measures. The minimum training required for any
5person or employee under this Section shall be the satisfactory
6completion of at least 40 hours of course instruction dealing
7with energy conservation measures. A qualified provider to whom
8the contract is awarded shall give a sufficient bond to the
9State agency or area vocational center for its faithful
10performance.
 
11    (30 ILCS 500/34-25 new)
12    Sec. 34-25. Request for proposals.
13    "Request for proposals" means a competitive selection
14achieved by negotiated procurement. The request for proposals
15shall be administered by the Capital Development Board and
16notification of the procurement will be in accordance with this
17Code, but in no case shall the Board provide less than a 30 day
18notice of the request for proposals. Proposals submitted shall
19be sealed. The request for proposals shall include all of the
20following:
21        (1) The name and address of the proposed project.
22        (2) The name, address, title, and phone number of a
23    contact person.
24        (3) Notice indicating that the State agency is
25    requesting qualified providers to propose energy

 

 

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1    conservation measures through a performance or guaranteed
2    energy savings contract.
3        (4) The date, time, and place where proposals must be
4    received.
5        (5) The evaluation criteria for assessing the
6    proposals.
7        (6) Any other stipulations and clarifications the
8    State agency may require.
 
9    (30 ILCS 500/34-30 new)
10    Sec. 34-30. Evaluation of proposal. Before entering into a
11performance or guaranteed energy savings contract, a State
12agency shall submit a request for proposals. The Capital
13Development Board shall evaluate any sealed proposal from a
14qualified provider on behalf of the State agency. The
15evaluation shall analyze the estimates of all costs of
16installations, modifications or remodeling, including, without
17limitation, costs of a pre-installation energy audit or
18analysis, design, engineering, installation, maintenance,
19repairs, debt service, conversions to a different energy or
20fuel source, or post-installation project monitoring, data
21collection, and reporting. The evaluation shall include a
22detailed analysis of whether either the energy consumed or the
23operating costs, or both, will be reduced. The evaluation of
24the proposal shall be done by a registered professional
25engineer or architect, who is retained by the Capital

 

 

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1Development Board or State agency, and selected in accordance
2with the Architectural, Engineering and Land Surveying
3Qualifications Based Selection Act. A licensed architect or
4registered professional engineer evaluating a proposal under
5this Section must not have any financial or contractual
6relationship with a qualified provider or other source that
7would constitute a conflict of interest.
 
8    (30 ILCS 500/34-35 new)
9    Sec. 34-35. Award of performance or guaranteed energy
10savings contract.
11    (a) Sealed proposals must be opened by the Capital
12Development Board, at a public opening at which the contents of
13the proposals must be announced. Each person or entity
14submitting a sealed proposal must receive at least 14 days
15notice of the time and place of the opening. The Capital
16Development Board shall select the qualified provider that best
17meets the needs of the State agency. After evaluating the
18proposals under Section 34-30, the Capital Development Board or
19the Capital Development Board acting on behalf of the State
20agency may enter into a performance or guaranteed energy
21savings contract with a qualified provider if it finds that the
22amount it would spend on the energy conservation measures
23recommended in the proposal would not exceed the amount to be
24saved in either energy or operational costs, or both, within a
2520-year period from the date of installation, if the

 

 

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1recommendations in the proposal are followed. Contracts let or
2awarded must be published in the Procurement Bulletin.
3    (b) The request for proposals and any contracts awarded to
4a qualified provider shall require that any subsequent need for
5architectural, engineering, and land surveying services which
6arise after the submittal of the request for qualifications,
7the request for proposals, or contract award shall be procured
8by the provider using a qualifications based selection process
9consisting of publication of notice of availability of such
10services, a statement of desired qualifications, an evaluation
11based on such desired qualifications, and the development of a
12shortlist ranking the firms in order of qualifications, and
13then negotiations with such ranked firms for a fair and
14reasonable fee. Compliance with the Architectural,
15Engineering, and Land Surveying Qualifications Based Selection
16Act, 30 ILCS 535, shall be deemed prima facie compliance with
17these provisions. Every performance or guaranteed energy
18savings contract shall include the requirements of this
19paragraph.
20    (c) The request for proposals shall require that each and
21every contractor, subcontractor, architectural, engineering
22and land surveying firm or entity shall be listed and the
23quotation or price for such services shall also be listed. In
24the event that prior to or after award, any of the listed firms
25shall have a reduction in their listed price, the performance
26or guaranteed energy savings contract shall be modified and

 

 

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1such savings shall be for the benefit of the State agency with
2a corresponding reduction in the contract amount. The
3information in the request for proposals shall be considered
4confidential and only for the use of the State agency.
 
5    (30 ILCS 500/34-40 new)
6    Sec. 34-40. Guarantee. The performance or guaranteed
7energy savings contract shall include a written guarantee of
8the qualified provider that either the energy or operational
9cost savings, or both, will meet or exceed within 20 years the
10costs of the energy conservation measures. The qualified
11provider shall reimburse the State agency for any shortfall of
12guaranteed energy savings projected in the contract. A
13qualified provider shall provide a sufficient bond to the State
14agency for the installation and the faithful performance of all
15the measures included in the contract. The performance or
16guaranteed energy savings contract may provide for payments
17over a period of time, not to exceed 20 years from the date of
18final installation of the measures.
 
19    (30 ILCS 500/34-45 new)
20    Sec. 34-45. Installment payment contract; lease purchase
21agreement. A State agency may enter into an installment payment
22contract or lease purchase agreement with a qualified provider
23or with a third party, as authorized by law, for the funding or
24financing of the purchase and installation of energy

 

 

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1conservation measures by a qualified provider. Any such
2contract or agreement shall be valid whether or not an
3appropriation with respect thereto is first included in any
4annual or supplemental budget adopted by the Illinois General
5Assembly, but only for a term of two years after such funding
6ceases. Each contract or agreement entered into by a State
7agency shall be authorized by official action of the State
8agency or Capital Development Board.
9    If an energy audit is performed by an energy services
10contractor for the State agency within the 3 years immediately
11preceding the solicitation, then the State agency must publish
12as a reference document in the solicitation for energy
13conservation measures the following:
14        (1) an executive summary of the energy audit provided
15    that the State agency may exclude any proprietary or
16    trademarked information or practices; or
17        (2) the energy audit provided that the State agency may
18    redact any proprietary or trademarked information or
19    practices.
20    A State agency may not withhold the disclosure of
21information related to (i) the State agency's consumption of
22energy, (ii) the physical condition of the State agency's
23facilities, and (iii) any limitations prescribed by the State
24agency.
25    In accordance with 30 ILCS 500/50-10.5, no energy services
26contractor that participated in the preparation of the

 

 

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1specifications issued by the State agency shall be permitted to
2respond to the solicitation or be awarded a contract for the
3performance or guaranteed energy savings contract. The
4solicitation must include a written disclosure that no energy
5services contractor participated in the preparation of the
6specifications. The written disclosure shall be published in
7the Capital Development Board Procurement Bulletin with the
8Request for Proposal.
 
9    (30 ILCS 500/34-50 new)
10    Sec. 34-50. Operational and energy cost savings. The State
11agency or the Capital Development Board shall document the
12operational and energy cost savings specified in the
13performance or guaranteed energy savings contract and
14designate and appropriate that amount for an annual payment of
15the contract. If the annual energy savings are less than
16projected under the guaranteed energy savings contract, the
17qualified provider shall pay the difference as provided in
18Section 34-40.
 
19    (30 ILCS 500/34-55 new)
20    Sec. 34-55. Bonding. A qualified provider shall provide a
21sufficient bond to the State agency for the installation and
22the faithful performance of all the measures included in the
23contract, in accordance with the Public Construction Bond Act,
2430 ILCS 550. Such bond shall be in effect for the entire term

 

 

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1of the contract, installment payment contract or lease purchase
2agreement.
 
3    (30 ILCS 500/34-60 new)
4    Sec. 34-60. Applicable laws. Other State laws and related
5administrative requirements apply to this Article, including,
6but not limited to, the following laws and related
7administrative requirements: the Illinois Human Rights Act,
8Business Enterprise for Minorities, Females, and Persons with
9Disabilities Act, the Prevailing Wage Act, the Public
10Construction Bond Act, the Public Works Preference Act
11(repealed on June 16, 2010 by Public Act 96-929), the
12Employment of Illinois Workers on Public Works Act, the Freedom
13of Information Act, the Open Meetings Act, the Illinois
14Architecture Practice Act of 1989, the Professional
15Engineering Practice Act of 1989, the Structural Engineering
16Practice Act of 1989, the Architectural, Engineering and Land
17Surveying Qualifications Based Selection Act, and the
18Contractor Unified License and Permit Bond Act, Procurement of
19Domestic Products Act, Public Purchases in Other States Act,
20Governmental Joint Purchasing Act, Design-Build Procurement
21Act, State Prompt Payment Act, Public Contract Fraud Act,
22Public Construction Contract Act, Airport and Correctional
23Facility Land Disclosure Act, State Real Property Leasing Act,
24Real Estate Leasing Act, Project Labor Agreements Act, and the
25provisions of Article 50 of this Code.
 

 

 

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1    Section 99. Effective date. This Act takes effect upon
2becoming law.