Bill Text: IL HB4268 | 2021-2022 | 102nd General Assembly | Introduced


Bill Title: Amends the School Code. Provides that a duty of the regional superintendent of schools is to inspect the energy conservation measures of schools under the Code. 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, and available funds. Designates the Smart Energy Design Assistance Center (SEDAC) as the lead agency for the review of performance contracts for school districts and area vocational centers. Sets forth the duties to be performed by SEDAC and the forms of assistance the agency must provide to school districts and area vocational centers.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2022-03-04 - House Floor Amendment No. 2 Rule 19(c) / Re-referred to Rules Committee [HB4268 Detail]

Download: Illinois-2021-HB4268-Introduced.html


102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4268

Introduced , 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 the energy conservation measures of schools under the Code. 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, and available funds. Designates the Smart Energy Design Assistance Center (SEDAC) as the lead agency for the review of performance contracts for school districts and area vocational centers. Sets forth the duties to be performed by SEDAC and the forms of assistance the agency must provide to school districts and area vocational centers.
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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

HB4268LRB102 21256 CMG 30367 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 sole use of mechanical and electrical
15upgrades or as necessary for the sole use of an energy unit
16installation, such as geothermal or solar array equipment.
17"Energy conservation measure" does not include new or
18additional 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.
19(Source: P.A. 96-1197, eff. 7-22-10.)
20 (105 ILCS 5/19b-1.3) (from Ch. 122, par. 19b-1.3)
21 Sec. 19b-1.3. Qualified provider. "Qualified provider"
22means a person or business whose employees are experienced and
23trained in the design, implementation, or installation of
24energy conservation measures. The minimum training required

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1for any person or employee under this Section shall be the
2satisfactory completion of at least 40 hours of course
3instruction dealing with energy conservation measures. A
4person or business may not engage in the practice of
5architecture, engineering, or structural engineering unless
6the person is licensed or the business is registered in
7accordance with the Illinois Architecture Practice Act of
81989, the Professional Engineering Practice Act of 1989, or
9the Structural Engineering Practice Act of 1989 and the rules
10adopted pursuant to those Acts. A person or business may not
11engage in the practice of plumbing unless the person is
12licensed in accordance with the Illinois Plumbing License Law.
13A qualified provider to whom the contract is awarded shall
14give a sufficient bond to the school district or area
15vocational center for its faithful performance.
16(Source: P.A. 92-767, eff. 8-6-02.)
17 (105 ILCS 5/19b-1.4) (from Ch. 122, par. 19b-1.4)
18 Sec. 19b-1.4. Request for proposals. "Request for
19proposals" means a competitive selection achieved by
20negotiated procurement. The request for proposals shall be
21submitted to the administrators of the Capital Development
22Board Procurement Bulletin for publication and through at
23least one public notice, at least 30 days before the request
24date in a newspaper published in the district or vocational
25center area, or if no newspaper is published in the district or

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1vocational center area, in a newspaper of general circulation
2in the area of the district or vocational center, from a school
3district or area vocational center that will administer the
4program, requesting innovative solutions and proposals for
5energy conservation measures. Proposals submitted shall be
6sealed. The request for proposals shall include all of the
7following:
8 (1) The name and address of the school district or
9 area vocation center.
10 (2) The name, address, title, and phone number of a
11 contact person.
12 (3) Notice indicating that the school district or area
13 vocational center is requesting qualified providers to
14 propose energy conservation measures through a guaranteed
15 energy savings contract.
16 (4) The date, time, and place where proposals must be
17 received.
18 (5) The evaluation criteria for assessing the
19 proposals.
20 (6) Any other stipulations and clarifications the
21 school district or area vocational center may require.
22(Source: P.A. 95-612, eff. 9-11-07; 96-1197, eff. 7-22-10.)
23 (105 ILCS 5/19b-1.5 new)
24 Sec. 19b-1.5. Energy operating cost. "Energy operating
25cost" means any expenditure paid by a school district or area

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1vocational center to a third party for the furnishing of heat,
2cold, power, electricity, water, or light to any building or
3facility owned or operated by a school district or area
4vocational center. "Energy operating cost" shall be directly
5related to the energy consumption costs of a structure paid to
6a utility provider. "Energy operating cost" does not include
7calculations related to general maintenance and custodial
8costs, including, but not limited to, window cleaning, floor
9waxing, carpet vacuuming and cleaning, the mowing of lawns,
10trash removal, playground maintenance, parking lot
11maintenance, and similar costs.
12 (105 ILCS 5/19b-2) (from Ch. 122, par. 19b-2)
13 Sec. 19b-2. Evaluation of proposal; performance review.
14Before entering into a guaranteed energy savings contract
15under Section 19b-3, a school district or area vocational
16center shall submit a request for proposals. The school
17district or area vocational center shall evaluate any sealed
18proposal from a qualified provider. The evaluation shall
19analyze the estimates of all costs of installations,
20modifications or remodeling, including, without limitation,
21costs of a pre-installation energy audit or analysis, design,
22engineering, installation, maintenance, repairs, debt service,
23conversions to a different energy or fuel source, or
24post-installation project monitoring, data collection, and
25reporting. The evaluation shall include a detailed analysis of

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1whether either the energy consumed or the energy operating
2costs, or both, will be reduced and shall be submitted to the
3administrators of the Capital Development Board for
4publication in the Illinois Procurement Bulletin. If technical
5assistance is not available by a licensed architect or
6registered professional engineer on the school district or
7area vocational center staff, then the evaluation of the
8proposal shall be done by a registered professional engineer
9or architect, who is retained by the school district or area
10vocational center. A licensed architect or registered
11professional engineer evaluating a proposal or reviewing
12contract performance under this Section must certify in
13writing that he or she does not have any financial or
14contractual relationship with a qualified provider or other
15source that would constitute a conflict of interest. The
16school district or area vocational center may pay a reasonable
17fee for evaluation of the proposal or the review of contract
18performance or include the fee as part of the payments made
19under Section 19b-4.
20 Performance reviews shall be conducted at least once every
214 years or at shorter intervals at the discretion of the school
22district or area vocational center to verify the outcomes of
23the guaranteed energy savings contract and shall include any
24improvement, repair, alteration, or betterment of any building
25or facility owned or operated by the school district or area
26vocational center or any equipment, fixture, or furnishing

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1added to or used in any such building or facility. A qualified
2provider may not withhold the disclosure of information
3related to the content of a proposal or the performance of the
4contract.
5(Source: P.A. 95-612, eff. 9-11-07.)
6 (105 ILCS 5/19b-2.1 new)
7 Sec. 19b-2.1. Submission of proposals. Proposals must be
8properly identified. Proposals may not be reviewed until after
9the deadline for submission has passed as set forth in the
10request for proposals. All qualified providers identified by
11the Smart Energy Design Assistance Center (SEDAC), in
12consultation with the Capital Development Board, pursuant to
13paragraph (1) of subsection (a) of Section 19b-90 of this Code
14that submit proposals shall be disclosed after the deadline
15for submission but not before. Proposals shall identify the
16names of all parties to the proposed contract, including those
17that may be subcontracted during the performance of the
18contract. A proposal must meet all material requirements of
19the request for proposal or the proposal may be rejected as
20nonresponsive. Proposals may be withdrawn prior to evaluation
21for any cause. No person or business that contracts with a
22school district or area vocational center to write
23specifications or otherwise provides specifications or
24assessments for a procurement need under this Section shall
25submit a bid or proposal or receive a contract for that

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1procurement need. All projects procured under this Section
2shall comply with Section 2-3.12 of this Code and the
3Health/Life Safety Code for Public Schools set forth in 23
4Ill. Adm. Code 180, if applicable, and are subject to review by
5the State Board of Education and the regional office of
6education.
7 (105 ILCS 5/19b-3) (from Ch. 122, par. 19b-3)
8 Sec. 19b-3. Award of guaranteed energy savings contract.
9Proposals Sealed proposals must be opened by a member or
10employee of the school board or governing board of the area
11vocational center, whichever is applicable, at a public
12opening at which the contents of the proposals must be
13announced. Each person or entity submitting a sealed proposal
14must receive at least 13 days notice of the time and place of
15the opening. The school district or area vocational center
16shall select the lowest responsive and responsible qualified
17provider identified by the Smart Energy Design Assistance
18Center (SEDAC), in consultation with the Capital Development
19Board, pursuant to paragraph (1) of subsection (a) of Section
2019b-90 of this Code that best meets the needs of the district
21or area vocational center. The school district or area
22vocational center shall provide public notice of the meeting
23at which it proposes to award a guaranteed energy savings
24contract of the names of the parties to the proposed contract
25and of the purpose of the contract. The public notice shall be

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

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1vocational center for any shortfall of guaranteed energy
2savings projected in the contract. A qualified provider shall
3provide a sufficient bond to the school district or area
4vocational center for the installation and the faithful
5performance of all the measures included in the contract. The
6guaranteed energy savings contract may provide for payments
7over a period of time, not to exceed 10 20 years (or 20 years
8for solar or geothermal projects) from the date of final
9installation of the measures.
10(Source: P.A. 92-767, eff. 8-6-02.)
11 (105 ILCS 5/19b-5) (from Ch. 122, par. 19b-5)
12 Sec. 19b-5. Installment payment contract; lease purchase
13agreement. A school district or school districts in
14combination or an area vocational center may enter into an
15installment payment contract or lease purchase agreement with
16a qualified provider or with a third party, as authorized by
17law, for the funding or financing of the purchase and
18installation of energy conservation measures by a qualified
19provider. Every school district or area vocational center may
20issue certificates evidencing the indebtedness incurred
21pursuant to the contracts or agreements. Any such contract or
22agreement shall be valid whether or not an appropriation with
23respect thereto is first included in any annual or
24supplemental budget adopted by the school district or area
25vocational center. Each contract or agreement entered into by

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1a school district or area vocational center pursuant to this
2Section shall be authorized by official action of the school
3board or governing board of the area vocational center,
4whichever is applicable. The authority granted in this Section
5is in addition to any other authority granted by law.
6 If an energy audit is performed by an energy services
7contractor for a school district within the 3 years
8immediately preceding the solicitation, then the school
9district must publish as a reference document in the
10solicitation for energy conservation measures the following:
11 (1) an executive summary of the energy audit provided
12 that the school district may exclude any proprietary or
13 trademarked information or practices; or
14 (2) the energy audit provided that the school district
15 may redact any proprietary or trademarked information or
16 practices.
17A school district may not withhold the disclosure of
18information related to (i) the school district's energy
19operating costs consumption of energy, (ii) the physical
20condition of the school district's facilities, and (iii) any
21limitations prescribed by the school district.
22 The solicitation must include a written disclosure that
23identifies any energy services contractor or qualified
24provider that participated in the preparation of the
25specifications issued by the school district. If no energy
26services contractor or qualified provider participated in the

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

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1installment payment contracts or lease purchase agreements. A
2school district or area vocational center that enters into
3such a contract or agreement may covenant in such contract or
4agreement that payments made thereunder shall be payable from
5the first funds legally available in each fiscal year.
6(Source: P.A. 92-767, eff. 8-6-02.)
7 (105 ILCS 5/19b-90 new)
8 Sec. 19b-90. Smart Energy Design Assistance Center
9(SEDAC).
10 (a) The Smart Energy Design Assistance Center (SEDAC)
11based at the University of Illinois at Urbana-Champaign is
12designated to be the lead agency for the review of performance
13contracts for school districts or area vocational centers.
14SEDAC shall coordinate its activities with school districts,
15the Capital Development Board, and area vocational centers.
16SEDAC, under the direction of the Governor, shall have the
17following duties with respect to the review of performance
18contracts:
19 (1) to assist school districts and area vocational
20 centers in compiling a list of qualified energy service
21 providers; and
22 (2) to develop a standardized energy performance
23 contract process and standard energy performance contract
24 documents, including a request for qualifications, a
25 request for proposals, an investment grade audit contract,

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1 an energy services agreement, including the form of the
2 project savings guarantee, and a project financing
3 agreement.
4 (b) SEDAC shall establish guidelines and an approval
5process for awarding energy performance contracts. The
6guidelines adopted under this subsection (b) must require that
7the cost-savings projected by a qualified provider be reviewed
8by a licensed professional engineer who:
9 (1) has a minimum of 3 years of experience in energy
10 calculation and review;
11 (2) is not an officer or employee of a qualified
12 provider for the contract under review; and
13 (3) is not otherwise associated with the contract.
14 In conducting the review, the engineer shall focus
15primarily on the proposed improvements from an engineering
16perspective and the methodology and calculations related to
17energy-related cost savings.
18 (c) SEDAC shall assist a school district or area
19vocational center in identifying, evaluating, and implementing
20cost-effective conservation projects at its facilities. The
21assistance 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 (d) SEDAC is authorized to fix, charge, and collect
4reasonable fees from a school district or an area vocational
5center for any administrative support and resources or other
6services provided by SEDAC or its designee under this Section.
7School districts and area vocational centers are authorized to
8add the costs of these fees to the total cost of the energy
9performance contract.
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