Illinois General Assembly - Full Text of SB1241
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Full Text of SB1241  103rd General Assembly




State of Illinois
2023 and 2024


Introduced 2/2/2023, by Sen. Chapin Rose


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 reduce operating costs and minimize energy consumption and related environmental impacts. 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conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed.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.

LRB103 04777 HLH 49787 b





SB1241LRB103 04777 HLH 49787 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 savings and long-term cost savings for all
8governmental units by facilitating prompt incorporation of
9energy conservation improvements, energy production equipment,
10or both, in buildings or facilities owned, operated, or under
11the supervision and control of governmental units, in
12cooperation with private-sector providers of such services and
13associated materials. These arrangements will improve and
14protect the health, safety, security, and welfare of the
15people of this State by promoting energy conservation and
16independence, 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
21saved or produced by a facility, activity, measure, or piece
22of equipment 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-saving measure" means the improvement, repair, or
6altercation of any facility or the addition of any equipment,
7fixture, or furnishing to be used in any facility, if the
8improvement, repair, altercation, or addition (i) is designed
9to reduce energy consumption and operating costs of the
10facility or increase the operating efficiency of the facility
11for its appointed function and (ii) is cost-effective.
12"Cost-saving measure" includes, but is not limited to, the
13installation, modification, or replacement of one or more of
14the following:
15        (1) lighting components, fixtures, and systems;
16        (2) renewable energy and alternate energy systems;
17        (3) cogeneration systems that produce steam or forms
18    of energy, such as heat or electricity, for use primarily
19    within a building or complex of buildings;
20        (4) devices that reduce water consumption or sewer
21    charges, including water-conserving fixtures, appliances,
22    and equipment, water-conserving landscape irrigation
23    equipment, or the substitution of non-water using
24    fixtures, appliances, and equipment;
25        (5) landscaping that reduces watering demands and
26    captures and holds applied water and rainfall, including



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



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1    area, or other window and door system modifications that
2    reduce energy consumption;
3        (14) automated or computerized energy control systems;
4        (15) heating, ventilation, or air conditioning system
5    modifications or replacements;
6        (16) indoor air quality improvements that conform to
7    applicable building code requirements;
8        (17) energy recovery systems;
9        (18) steam trap improvement programs that reduce
10    operating costs;
11        (19) services to reduce utility costs by identifying
12    utility errors and optimizing existing rate schedules
13    under which service is provided; and
14        (20) any other installation, modification of
15    installation, or remodeling of building infrastructure
16    improvements that produce utility or operational cost
17    savings for their appointed functions in compliance with
18    applicable State and local building codes.
19"Cost-saving measure" also includes one or more of the
21        (i) building operation programs that reduce utility
22    and operating costs including, but not limited to,
23    computerized energy management and consumption tracking
24    programs, staff and occupant training, and other similar
25    activities;
26        (ii) any life safety measures that provide long-term



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1    operating cost reductions and are in compliance with State
2    and local statute;
3        (iii) any life safety measures related to compliance
4    with the federal Americans with Disabilities Act that
5    provide long-term operating cost reductions and are in
6    compliance with State and local statute; and
7        (iv) a program to reduce energy costs through rate
8    adjustments, load shifting to reduce peak demand, and use
9    of alternative energy suppliers, such as, but not limited
10    to:
11            (A) changes to more favorable rate schedules; and
12            (B) negotiation of lower rates, same supplier, or
13        new suppliers, where applicable; and
14            (C) auditing of energy service billing and meters.
15    "Energy performance contract" or "energy services
16agreement" means a contract between a governmental unit and a
17qualified energy service provider for evaluation,
18recommendation, and implementation of one or more cost-saving
19measures. A performance contract may be structured as either:
20        (1) a guaranteed energy savings performance contract,
21    which shall include, at a minimum, the design and
22    installation of equipment, and, if applicable, operation
23    and maintenance of any of the measures implemented, and
24    guaranteed annual savings which must meet or exceed the
25    total annual contract payments made by the governmental
26    unit for that contract, including financing charges to be



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1    incurred by the governmental unit over the life of the
2    contract; or
3        (2) a shared savings contract, which shall include
4    provisions mutually agreed upon by the governmental unit
5    and the qualified provider or qualified energy service
6    company as to the negotiated rate of payments based upon
7    energy and operational cost savings and a stipulated
8    maximum energy consumption level over the life of the
9    contract.
10    "Governmental unit" means any State agency, authority, or
11any political subdivision of the State, including public
12institutions of higher education and public community colleges
13located in this State. "Governmental unit" does not include
14units of local government, including counties, cities,
15townships, villages, municipal governments, or local school
16districts. Nothing in this Act prevents the Smart Energy
17Design Assistance Center as the lead agency for the
18development and promotion of a program from contracting or
19partnering with units of local government or local school
20districts throughout the State on a voluntary basis.
21    "Investment-grade energy audit" means a study by the
22qualified energy services provider selected for a particular
23energy performance contract project, which includes detailed
24descriptions of the improvements recommended for the project,
25the estimated costs of the improvements, and the utility and
26operations and maintenance cost savings projected to result



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1from the recommended improvements.
2    "Operation and maintenance cost savings" means a
3measurable decrease in operation and maintenance costs and
4future replacement expenditures if that decrease is a direct
5result of the implementation of one or more utility
6cost-saving measures. These savings shall be calculated in
7comparison with an established baseline of operation and
8maintenance costs.
9    "Person" means any corporate or non-corporate entity or
10individual of any type.
11    "Public building" means any structure, building, or
12facility, including its equipment, furnishings, or appliances
13that is owned or operated by a governmental unit.
14    "Qualified energy service provider" means a person with a
15record of successful energy performance contract projects or a
16person who:
17        (1) is experienced in the design, implementation, and
18    installation of energy efficiency and facility improvement
19    measures;
20        (2) has the technical capabilities to ensure such
21    measures generate energy and operational cost savings; and
22        (3) has the ability to secure the financing necessary
23    to support energy savings guarantees.
24    "Utility cost savings" means any utility expenses that are
25eliminated or avoided on a long-term basis as a result of
26equipment installed or modified, or services performed by a



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1qualified energy service provider. "Utility cost savings" does
2not include merely shifting personnel costs or similar
3short-term cost savings.
4    Section 15. Authorization.
5    (a) Each governmental unit shall implement cost-effective
6conservation improvements and maintain efficient operation of
7its facilities in order to minimize energy consumption and
8related environmental impacts, and reduce operating costs.
9Each governmental unit shall undertake an energy audit and
10implement cost-effective conservation measures. Energy
11performance contracting shall be the preferred method for
12completing energy audits and implementing cost-effective
13conservation measures.
14    (b) Any governmental unit may enter into an energy
15performance contract with a qualified energy service provider
16to produce utility savings or operating and maintenance cost
17savings. Cost-saving measures implemented under such contracts
18shall comply with State or local building codes. Any
19governmental unit may implement other capital improvements in
20conjunction with a performance contract so long as the
21measures that are being implemented to achieve energy and
22operations and maintenance cost savings are a significant
23portion of an overall project. A governmental unit may enter
24into an energy savings performance contract for a period of
25more than one year only if the governmental unit finds that the



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1amount the governmental unit would spend on the energy or
2water conservation measures will not exceed the amount to be
3saved in energy, water, wastewater, and operating costs over 8
4years from the date of installation.
5    Section 20. Smart Energy Design Assistance Center (SEDAC).
6    (a) The Smart Energy Design Assistance Center (SEDAC)
7based at the University of Illinois at Urbana-Champaign is
8hereby designated to be the lead agency for the development
9and promotion of a program of performance contracts in
10governmental units. SEDAC will coordinate its activities with
11the Capital Development Board. SEDAC, under the direction of
12the Governor, will have the following duties with respect to
13this program:
14        (1) assistance to the Capital Development Board to
15    assemble a list of qualified energy service providers and
16    to negotiate master service contracts and pricing
17    schedules with such qualified energy service providers;
18        (2) development of a standardized energy performance
19    contract process and standard energy performance contract
20    documents, including request for qualifications, request
21    for proposals, investment grade audit contract, energy
22    services agreement, including the form of the project
23    savings guarantee, and project financing agreement; and
24        (3) promotion of the energy performance contract
25    program to all governmental units.



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1    (b) SEDAC shall establish guidelines and an approval
2process for awarding energy performance contracts. The
3guidelines adopted under this subsection must require that the
4cost savings projected by a qualified provider be reviewed by
5a licensed professional engineer who has a minimum of 3 years
6of experience in energy calculation and review, is not an
7officer or employee of a qualified provider for the contract
8under review, and is not otherwise associated with the
9contract. In conducting the review, the engineer shall focus
10primarily on the proposed improvements from an engineering
11perspective, the methodology and calculations related to cost
12savings, increases in revenue, and, if applicable, efficiency
13or accuracy of metering equipment. An engineer who reviews a
14contract shall maintain the confidentiality of any proprietary
15information the engineer acquires while reviewing the
17    (c) SEDAC shall assist governmental units in identifying,
18evaluating, and implementing cost-effective conservation
19projects at their facilities. The assistance shall include:
20        (1) notifying governmental units of their
21    responsibilities under this Act;
22        (2) apprising governmental units of opportunities to
23    develop and finance energy performance contracting
24    projects;
25        (3) providing technical and analytical support,
26    including procurement energy performance contracting



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1    services;
2        (4) reviewing verification procedures for energy
3    savings; and
4        (5) assisting in the structuring and arranging of
5    financing for energy performance contracting projects.
6    (d) SEDAC is authorized to fix, charge, and collect
7reasonable fees, not to exceed 2% of the total cost of the
8energy performance contract project, for any administrative
9support and resources or other services provided by SEDAC, or
10its designee, under this subsection from the governmental
11units that use its technical support services. Governmental
12units are authorized to add the costs of these fees to the
13total cost of the energy performance contract.
14    (e) The Governor is encouraged to develop and submit to
15the General Assembly a regular or supplemental budget request
16for the additional funds and staffing required by SEDAC to
17fulfill the duties required under this Section.
18    Section 25. Selection of a qualified energy service
19provider. The State process of implementing energy performance
20contracts for governmental units shall be as provided in this
22    (a) Regarding requests for qualifications, the Capital
23Development Board is authorized to assemble a list of
24qualified energy service providers, in accordance with the
25provisions of the Illinois Procurement Code. The Capital



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1Development Board shall attempt to use objective criteria in
2the selection process. The criteria for evaluation shall
3include substantive factors to assess the capability of the
4qualified energy service company or qualified provider in the
5areas of design, engineering, installation, maintenance, and
6repairs associated with performance contracts. The substantive
7factors shall be as follows:
8        (1) experience in conversions to a different energy or
9    fuel source, so long as it is associated with a
10    comprehensive energy efficiency retrofit;
11        (2) post-installation project monitoring, data
12    collection, and reporting of savings;
13        (3) overall project experience and qualifications;
14        (4) management capability;
15        (5) ability to access long-term financing;
16        (6) experience with projects of similar size and
17    scope; and
18        (7) other factors determined by the governmental unit
19    to be relevant and appropriate and relate to the ability
20    to perform the project.
21    (b) Regarding requests for proposals, before entering into
22a performance contract under this Section, a governmental unit
23shall issue a request for proposals from a minimum of 3
24qualified energy service providers. A governmental unit may
25thereafter award the performance contract to the qualified
26energy service company or qualified provider that best meets



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1the needs of the governmental unit, which need not be the
2lowest cost provided. A cost-effective feasibility analysis
3shall be prepared in response to the request for proposals.
4The feasibility analysis included in the response to the
5request for proposals shall serve as the selection document
6for purposes of selecting a qualified energy service provider
7to engage in final contract negotiations. Factors to be
8included in selecting among the selected energy service
9providers include contract terms, comprehensiveness of the
10proposal, comprehensiveness of cost-saving measures,
11experience, quality of technical approach, and overall
12benefits to the governmental unit.
13    Section 30. Investment-grade audit and contract execution.
14    (a) One qualified energy service provider selected as a
15result of the process provided under subsection (b) of Section
1625 shall prepare an investment-grade energy audit, which, upon
17acceptance, shall be part of the final energy performance
18contract or energy services agreement which shall be executed
19with the governmental unit. The investment-grade energy audit
20shall include estimates of the amounts by which utility cost
21savings and operation and maintenance cost savings would
22increase and estimates of all costs of such utility
23cost-saving measures or energy-saving measures, including, but
24not limited to, itemized costs of design, engineering,
25equipment, materials, installation, maintenance, repairs, and



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1debt service.
2    (b) Notwithstanding the provisions of subsection (a), if
3after preparation of the investment-grade energy audit the
4governmental unit decides not to execute an energy services
5agreement, and the costs and benefits described in the energy
6audit are not materially different from those described in the
7feasibility study submitted in response to the request for
8proposals, then the costs incurred in preparing the
9investment-grade energy audit shall be paid to the qualified
10energy service provider by the governmental unit. Otherwise,
11the costs of the investment-grade energy audit shall be deemed
12part of the costs of the energy performance contract or energy
13services agreement.
14    Section 35. Installment payment and lease-purchase
16    (a) A governmental unit may use designated funds, bonds,
17or master lease for any energy performance contract, including
18purchases using installment payment contracts or
19lease-purchase agreements, so long as that use is consistent
20with the purpose of the appropriation.
21    (b) A guaranteed energy performance savings contract shall
22provide for financing, including tax-exempt financing, by a
23third party. The contract for third party financing may be
24separate from the energy performance contract. A separate
25contract for third party financing must include a provision



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1that the third party financier must not be granted rights or
2privileges that exceed the rights and privileges available to
3the guaranteed energy performance savings contractor.
4    Section 40. Payment schedule and savings. Each performance
5contract shall provide that all payments between parties,
6except obligations on termination of the contract before its
7expiration, shall be made over time, and the objective of each
8energy performance contract is implementation of cost-saving
9measures and energy and operational cost savings.
10    Section 45. Term of Contracts. An energy performance
11contract, and payments provided thereunder, may extend beyond
12the fiscal year in which the energy performance contract
13became effective, subject to appropriation of moneys, if
14required by law, for costs incurred in future fiscal years.
15The energy performance contract may extend for a term not to
16exceed 25 years. The allowable length of the contract may also
17reflect the useful life of the cost-saving measures. Energy
18performance contracts may provide for payments over a period
19of time not to exceed deadlines specified in the energy
20performance contract from the date of the final installation
21of the cost-saving measures.
22    Section 50. Allocation of obligations. Subject to
23appropriations as provided in Sections 30 and 35, each



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1governmental unit shall allocate sufficient moneys for each
2fiscal year to make payment of any amounts payable by the
3governmental unit under performance contracts during that
4fiscal year.
5    Section 55. Use of moneys; reconciliation.
6    (a) The governmental unit engaging in the performance
7contract shall retain the savings achieved by entering into
8the performance contract. In no event shall the governmental
9unit use those savings to supplant otherwise appropriated
10funds for the governmental unit.
11    (b) Unless otherwise provided by law or ordinance, a
12governmental unit may use funds designated for operating and
13capital expenditures or utilities for any performance
14contract, including, but not limited to, contracts entered
15into under Section 25.
16    (c) The energy performance contract may provide that
17reconciliation of the amounts owed under an energy performance
18contract shall occur in a period beyond one year with final
19reconciliation occurring within the term of the performance
21    (d) The energy performance contract shall require the
22qualified provider to provide to the governmental unit an
23annual reconciliation of the guaranteed energy cost savings.
24If the reconciliation reveals a shortfall in annual energy
25cost savings, the qualified provider is liable for that



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



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1        (5) changes in the operational schedule of the
2    facility;
3        (6) changes in facility temperature;
4        (7) material change in the weather;
5        (8) material changes in the amount of equipment or
6    lighting used at the facility; or
7        (9) any other change which reasonably would be
8    expected to modify energy use or energy costs.
9    (c) For all projects carried out under this Act, the
10governmental unit shall report the name of the project, the
11project host, the investment on the project, and the expected
12energy savings to the Illinois Commerce Commission, and shall
13file with the Illinois Commerce Commission a copy of all
14reconciliation reports delivered under this subsection. The
15Illinois Commerce Commission may report energy savings from
16these projects to the federal Energy Information
17Administration under the Energy Policy Act of 1992 reporting
19    Section 65. Contingency provisions. Performance contracts
20shall include contingency provisions if actual savings do not
21meet predicted savings.
22    Section 70. Use of savings from performance contracts.
23Governmental units may direct savings realized under the
24performance contract to contract payment and other expenses as



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1they deem necessary. Governmental units are encouraged to
2reinvest savings whenever practical into cost-saving measures,
3so long as the governmental unit is satisfying all obligations
4under the performance contract.
5    Section 75. Act takes precedence; repeal of prior
6conflicting statutes. In case of any conflict between the
7provisions of this Act and any other law, the provisions of
8this Act shall prevail and control. The provisions of any
9statute enacted prior to this Act which are inconsistent with
10this Act are hereby repealed. The Attorney General shall
11consult with the Smart Energy Design Assistance Center (SEDAC)
12in construing this Section.
13    Section 100. The Illinois Procurement Code is amended by
14changing Sections 20-60 and 40-25 as follows:
15    (30 ILCS 500/20-60)
16    Sec. 20-60. Duration of contracts.
17    (a) Maximum duration. A contract may be entered into for
18any period of time deemed to be in the best interests of the
19State but not exceeding 10 years inclusive, beginning January
201, 2010, of proposed contract renewals. Third parties may
21lease State-owned dark fiber networks for any period of time
22deemed to be in the best interest of the State, but not
23exceeding 20 years. The length of a lease for real property or



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1capital improvements shall be in accordance with the
2provisions of Section 40-25. The length of energy conservation
3program contracts or energy savings contracts or leases shall
4be in accordance with the provisions of Section 45 of the
5Energy Performance Contracting Act 25-45. A contract for bond
6or mortgage insurance awarded by the Illinois Housing
7Development Authority, however, may be entered into for any
8period of time less than or equal to the maximum period of time
9that the subject bond or mortgage may remain outstanding.
10    (b) Subject to appropriation. All contracts made or
11entered into shall recite that they are subject to termination
12and cancellation in any year for which the General Assembly
13fails to make an appropriation to make payments under the
14terms of the contract.
15    (c) The chief procurement officer shall file a proposed
16extension or renewal of a contract with the Procurement Policy
17Board and the Commission on Equity and Inclusion prior to
18entering into any extension or renewal if the cost associated
19with the extension or renewal exceeds $249,999. The
20Procurement Policy Board or the Commission on Equity and
21Inclusion may object to the proposed extension or renewal
22within 14 calendar days and require a hearing before the Board
23or the Commission on Equity and Inclusion prior to entering
24into the extension or renewal. If the Procurement Policy Board
25or the Commission on Equity and Inclusion does not object
26within 14 calendar days or takes affirmative action to



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1recommend the extension or renewal, the chief procurement
2officer may enter into the extension or renewal of a contract.
3This subsection does not apply to any emergency procurement,
4any procurement under Article 40, or any procurement exempted
5by Section 1-10(b) of this Code. If any State agency contract
6is paid for in whole or in part with federal-aid funds, grants,
7or loans and the provisions of this subsection would result in
8the loss of those federal-aid funds, grants, or loans, then
9the contract is exempt from the provisions of this subsection
10in order to remain eligible for those federal-aid funds,
11grants, or loans, and the State agency shall file notice of
12this exemption with the Procurement Policy Board or the
13Commission on Equity and Inclusion prior to entering into the
14proposed extension or renewal. Nothing in this subsection
15permits a chief procurement officer to enter into an extension
16or renewal in violation of subsection (a). By August 1 each
17year, the Procurement Policy Board and the Commission on
18Equity and Inclusion shall each file a report with the General
19Assembly identifying for the previous fiscal year (i) the
20proposed extensions or renewals that were filed and whether
21such extensions and renewals were objected to and (ii) the
22contracts exempt from this subsection.
23    (d) Notwithstanding the provisions of subsection (a) of
24this Section, the Department of Innovation and Technology may
25enter into leases for dark fiber networks for any period of
26time deemed to be in the best interests of the State but not



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1exceeding 20 years inclusive. The Department of Innovation and
2Technology may lease dark fiber networks from third parties
3only for the primary purpose of providing services (i) to the
4offices of Governor, Lieutenant Governor, Attorney General,
5Secretary of State, Comptroller, or Treasurer and State
6agencies, as defined under Section 5-15 of the Civil
7Administrative Code of Illinois or (ii) for anchor
8institutions, as defined in Section 7 of the Illinois Century
9Network Act. Dark fiber network lease contracts shall be
10subject to all other provisions of this Code and any
11applicable rules or requirements, including, but not limited
12to, publication of lease solicitations, use of standard State
13contracting terms and conditions, and approval of vendor
14certifications and financial disclosures.
15    (e) As used in this Section, "dark fiber network" means a
16network of fiber optic cables laid but currently unused by a
17third party that the third party is leasing for use as network
19    (f) No vendor shall be eligible for renewal of a contract
20when that vendor has failed to meet the goals agreed to in the
21vendor's utilization plan, as defined in Section 2 of the
22Business Enterprise for Minorities, Women, and Persons with
23Disabilities Act, unless the State agency or public
24institution of higher education has determined that the vendor
25made good faith efforts toward meeting the contract goals. If
26the State agency or public institution of higher education



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1determines that the vendor made good faith efforts, the agency
2or public institution of higher education may issue a waiver
3after concurrence by the chief procurement officer, which
4shall not be unreasonably withheld or impair a State agency
5determination to execute the renewal. The form and content of
6the waiver shall be prescribed by each chief procurement
7officer, but shall not impair a State agency or public
8institution of higher education determination to execute the
9renewal. The chief procurement officer shall post the
10completed form on his or her official website within 5
11business days after receipt from the State agency or public
12institution of higher education. The chief procurement officer
13shall maintain on his or her official website a database of
14waivers granted under this Section with respect to contracts
15under his or her jurisdiction. The database shall be updated
16periodically and shall be searchable by contractor name and by
17contracting State agency or public institution of higher
19(Source: P.A. 101-81, eff. 7-12-19; 101-657, Article 5,
20Section 5-5, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
21effective date of P.A. 101-657, Article 5, Section 5-5);
22101-657, Article 40, Section 40-125, eff. 1-1-22; 102-29, eff.
236-25-21; 102-721, eff. 1-1-23.)
24    (30 ILCS 500/40-25)
25    Sec. 40-25. Length of leases.



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



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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    (e) On December 31, 2023, and every year thereafter, any
10institution of higher education that enters into a lease under
11this Section shall file with both houses of the General
12Assembly a report outlining each lease entered into under this
13Section that is current as of the date of the report.
14(Source: P.A. 101-426, eff. 1-1-20; 102-721, eff. 1-1-23.)
15    (30 ILCS 500/25-45 rep.)
16    Section 105. The Illinois Procurement Code is amended by
17repealing Section 25-45.
18    Section 999. Effective date. This Act takes effect upon
19becoming law.