Bill Amendment: IL HB2582 | 2017-2018 | 100th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: PROCUREMENT-ENERGY SAVINGS

Status: 2019-01-08 - Session Sine Die [HB2582 Detail]

Download: Illinois-2017-HB2582-House_Amendment_001.html

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Rep. Robert W. Pritchard

Filed: 3/17/2017

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AMENDMENT TO HOUSE BILL 2582
AMENDMENT NO. ______. Amend House Bill 2582 by replacing
everything after the enacting clause with the following:
"Section 5. The Illinois Procurement Code is amended by
changing Sections 20-60 and 25-45 as follows:
(30 ILCS 500/20-60)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract, other than a contract
entered into pursuant to the State University Certificates of
Participation Act, may be entered into for any period of time
deemed to be in the best interests of the State but not
exceeding 10 years inclusive, beginning January 1, 2010, of
proposed contract renewals. The length of a lease for real
property or capital improvements shall be in accordance with
the provisions of Section 40-25. The length of a guaranteed
energy savings contract shall be in accordance with the

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provisions of Section 25-45 of this Code and may be entered
into for any period of time deemed to be in the best interest
of the State, but shall not exceed 15 years in length. A
contract for bond or mortgage insurance awarded by the Illinois
Housing Development Authority, however, may be entered into for
any period of time less than or equal to the maximum period of
time that the subject bond or mortgage may remain outstanding.
(b) Subject to appropriation. All contracts made or entered
into shall recite that they are subject to termination and
cancellation in any year for which the General Assembly fails
to make an appropriation to make payments under the terms of
the contract.
(c) The chief procurement officer shall file a proposed
extension or renewal of a contract with the Procurement Policy
Board prior to entering into any extension or renewal if the
cost associated with the extension or renewal exceeds $249,999.
The Procurement Policy Board may object to the proposed
extension or renewal within 30 calendar days and require a
hearing before the Board prior to entering into the extension
or renewal. If the Procurement Policy Board does not object
within 30 calendar days or takes affirmative action to
recommend the extension or renewal, the chief procurement
officer may enter into the extension or renewal of a contract.
This subsection does not apply to any emergency procurement,
any procurement under Article 40, or any procurement exempted
by Section 1-10(b) of this Code. If any State agency contract

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is paid for in whole or in part with federal-aid funds, grants,
or loans and the provisions of this subsection would result in
the loss of those federal-aid funds, grants, or loans, then the
contract is exempt from the provisions of this subsection in
order to remain eligible for those federal-aid funds, grants,
or loans, and the State agency shall file notice of this
exemption with the Procurement Policy Board prior to entering
into the proposed extension or renewal. Nothing in this
subsection permits a chief procurement officer to enter into an
extension or renewal in violation of subsection (a). By August
1 each year, the Procurement Policy Board shall file a report
with the General Assembly identifying for the previous fiscal
year (i) the proposed extensions or renewals that were filed
with the Board and whether the Board objected and (ii) the
contracts exempt from this subsection.
(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09;
96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the
effective date of changes made by P.A. 96-795); 96-920, eff.
7-1-10; 96-1478, eff. 8-23-10.)
(30 ILCS 500/25-45)
Sec. 25-45. Executive agency energy conservation and
saving measures Energy conservation program.
(a) Definitions. As used in this Section:
"Board" means the Capital Development Board or its
successors.

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"Contracting authority" means the Department, the Board,
or other such agencies as may be delegated to execute certain
of its statutory procurement functions through
intergovernmental agreements specifically developed for the
purpose of securing energy conservation services.
"Department" means the Department of Central Management
Services acting in its capacity as the statutory owner and
manager of all properties owned and operated by the State of
Illinois on behalf of agencies, boards, and commissions
functioning under the executive authority of the Governor.
"Energy conservation measure" means any improvement,
repair, alteration, or betterment of any executive agency
facility or any equipment, fixture, or furnishing to be added
to or used in an executive agency facility, that is designed to
reduce energy consumption or operating costs, and may include,
but is not limited to, one or more of the following:
(1) Insulation of the building structure or systems
within the building.
(2) Storm windows or doors, caulking or weather
stripping, multiglazed windows or doors, heat-absorbing or
heat-reflective glazed and coated window or door systems,
additional glazing, reductions in glass area, or other
window and door system modifications that reduce energy
consumption.
(3) Automated or computerized energy control systems.
(4) Heating, ventilating, or air conditioning system,

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modifications, or replacements.
(5) Replacement or modification of lighting fixtures
to increase the energy efficiency of the lighting system
without increasing the overall illumination of a building,
unless an increase in illumination is necessary to conform
to the applicable State or local building code for the
lighting system after the proposed modifications are made.
(6) Energy recovery systems.
"Executive agency facility" means a building owned and
operated by the State of Illinois through an agency, board, or
commission statutorily functioning under the executive
authority of the Governor and under the general property
management authority of the Department of Central Management
Services.
"Guaranteed energy savings contract" means a contract for:
(i) the implementation of an energy audit, data collection, and
other related analyses preliminary to the undertaking of energy
conservation measures; (ii) the evaluation and recommendation
of energy conservation measures; (iii) the implementation of
one or more energy conservation measures; and (iv) the
implementation of project monitoring and data collection to
verify post installation energy consumption and energy related
operating costs. The contract shall provide that all payments,
except obligations on termination of the contract before its
expiration, are to be made over time and that the savings are
guaranteed to the extent necessary to pay the costs of the

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energy conservation measures. "Energy savings" may include
energy reduction and offsetting sources of renewable energy
funds, including renewable energy credits and carbon credits.
"Qualified provider" means a person or business whose
employees are experienced and trained in the design,
implementation, or installation of energy conservation
measures. The minimum training required for any person or
employee under this Section shall be the satisfactory
completion of at least 40 hours of course instruction dealing
with energy conservation measures, but the person or business
may not engage in the practice of architecture, engineering,
structural engineering, or plumbing unless the person is
licensed or the business is registered in accordance with the
appropriate Act or Law or the applicable rules, as identified
in subsection (i) of this Section. A qualified provider to whom
the contract is awarded shall give a sufficient bond to the
executive agency or for its faithful performance.
(b) Before entering into a guaranteed energy savings
contract, the contracting authority shall issue a request for
proposals in accordance with this Code requesting competitive
sealed offers for innovative solutions and conservation
measures. A request for proposals shall be published in the
volume of the Illinois Procurement Bulletin under the authority
of the chief procurement officer for at least 30 days before
offers are due. No person or business shall submit
specifications to the contracting authority unless requested

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to do so by an employee of the State. No person or business who
contracts with the contracting authority to write
specifications, or otherwise provides specifications, for a
particular procurement need shall submit a bid or proposal or
receive a contract for that procurement need.
(c) After evaluating the proposals, a contracting
authority for an executive agency facility may enter into a
guaranteed energy savings contract with the best-qualified
offeror if the contracting authority finds that the amount it
would spend on the energy conservation measures recommended in
the proposal would not exceed the amount to be saved in either
energy or operational costs, or both, within a 15-year period
from the date of installation if the recommendations in the
proposal are followed. Contracts let or awarded must be
published in the volume of the Illinois Procurement Bulletin
under the authority of the chief procurement officer.
(d) The guaranteed energy savings contract shall include
the contractor's guarantee that either the energy or
operational cost savings, or both, will meet or exceed within
15 years the costs of the energy conservation measures. The
contractor shall reimburse the State for any shortfall of
guaranteed energy savings projected in the contract. A
contractor shall provide a sufficient bond, as determined by
the State, to the contracting authority for the installation
and the faithful performance of all the measures included in
the contract. The guaranteed energy savings contract may

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provide for payments over a period of time, not to exceed 15
years from the date of final installation of the energy
conservation measures.
(e) If an energy audit is performed by an energy services
contractor for an executive agency facility within the 3 years
immediately preceding the request for proposals, then the
contracting authority must publish as a reference document in
the solicitation for energy conservation measures the
following:
(1) an executive summary of the energy audit, provided
that the contracting authority and executive agency
facility may exclude any proprietary or trademarked
information or practices; or
(2) the energy audit, provided that the contracting
authority and executive agency facility may redact any
proprietary or trademarked information or practices.
An executive agency facility or contracting authority may
not withhold the disclosure of information related to: (i) the
executive agency facility's consumption of energy, (ii) the
physical condition of the executive agency's facilities, and
(iii) any limitations prescribed by the executive agency
facility or contracting authority.
(f) Guaranteed energy savings contracts may extend beyond
the fiscal year in which they become effective. However,
subsequent fiscal year costs shall be subject to appropriations
that cover the defined work.

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(g) In cooperation with the contracting authority, the
executive agency facility shall document the energy cost
savings for measures installed as specified in the guaranteed
energy savings contract and designate and appropriate that
amount for an annual payment of the contract. If the annual
energy savings are less than projected under the guaranteed
energy savings contract the contractor shall pay the difference
as provided in subsection (d) of this Section.
(h) An executive agency facility or contracting authority
may use funds designated for operating or capital expenditures
for any guaranteed energy savings contract including purchases
using installment payment contracts or lease purchase
agreements.
(i) Other State laws and related administrative
requirements apply to this Section, including, but not limited
to, the following laws and related administrative
requirements: the Illinois Human Rights Act, the Prevailing
Wage Act, the Public Construction Bond Act, the Employment of
Illinois Workers on Public Works Act, the Freedom of
Information Act, the Open Meetings Act, the Illinois
Architecture Practice Act of 1989, the Professional
Engineering Practice Act of 1989, the Structural Engineering
Practice Act of 1989, the Illinois Plumbing License Law, and
the Contractor Unified License and Permit Bond Act.
(j) In order to protect the integrity of historic
buildings, no provision of this Section shall be interpreted to

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require the implementation of energy conservation measures
that conflict with respect to any property eligible for,
nominated to, or entered on the National Register of Historic
Places, pursuant to the federal National Historic Preservation
Act of 1966, or the Illinois Register of Historic Places,
pursuant to the Illinois Historic Preservation Act.
State purchasing officers may enter into energy conservation
program contracts that provide for utility cost savings. The
chief procurement officer shall promulgate and adopt rules for
the implementation of this Section.
(Source: P.A. 90-572, eff. date - See Sec. 99-5.)".