Bill Text: IL SB0950 | 2017-2018 | 100th General Assembly | Introduced

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Bill Title: Amends the Illinois Procurement Code. Provides for executive agencies, the Department of Central Management Services, and the Capital Development Board to enter into guaranteed energy savings contracts. Requires the agencies to enter into a request for proposals before entering into a guaranteed energy savings contract; sets forth requirements for the request for proposals. Sets forth provisions concerning the evaluation of proposals. Requires guaranteed energy savings contracts to result in energy or operational cost savings within 20 years. Requires contractors to reimburse the State for any shortfall of guaranteed energy savings projected in the contract. Sets forth other requirements, and provides that certain State laws apply to any contracts entered into under the provisions. Provides that no provision shall be interpreted to 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 or the Illinois Register of Historic Places. Removes prior provisions allowing the chief procurement officer to promulgate rules for entering into energy conservation program contracts.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2019-01-09 - Session Sine Die [SB0950 Detail]

Download: Illinois-2017-SB0950-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB0950 Introduced 2/7/2017, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED:
30 ILCS 500/25-45
Amends the Illinois Procurement Code. Provides for executive agencies, the Department of Central Management Services, and the Capital Development Board to enter into guaranteed energy savings contracts. Requires the agencies to enter into a request for proposals before entering into a guaranteed energy savings contracts; sets forth requirements for the request for proposals. Sets forth provisions concerning the evaluation of proposals. Requires guaranteed energy savings contracts to result in energy or operational cost savings within 20 years. Requires contractors to reimburse the State for any shortfall of guaranteed energy savings projected in the contract. Sets forth other requirements, and provides that certain State laws apply to any contracts entered into under the provisions. Provides that no provision shall be interpreted to 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 or the Illinois Register of Historic Places. Removes prior provisions allowing the chief procurement officer to promulgate rules for entering into energy conservation program contracts.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Procurement Code is amended by
changing Section 25-45 as follows:
(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.
"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

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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,
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.
(7) Energy conservation measures that provide
long-term operating cost reductions.
"Executive agency facility" means a building owned and
operated by the State of Illinois through an agency, board, or

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commission statutorily functioning under the executive
authority of the Governor or other constitutional officers.
"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
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 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.
A qualified provider to whom the contract is awarded shall give
a sufficient bond to the executive agency or for its faithful
performance.

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(b) Before entering into a guaranteed energy savings
contract, the contracting authority shall issue a request for
proposals in accordance with Article 30 of 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 the
Capital Development Board for at least 30 days before offers
are due. The request for proposals shall, at a minimum, include
all of the following:
(1) The name and address of the executive agency.
(2) The name, address, title, and phone number of an
executive agency contact person who will respond to
questions regarding the request for proposals.
(3) Notice indicating that the contracting authority
is requesting qualified providers to propose energy
conservation measures through a guaranteed energy savings
contract.
(4) The date, time, and place where offers must be
received.
(5) The evaluation criteria for evaluating offers.
(6) Any other stipulations and clarifications the
contracting authority or executive agency facility may
require.
(7) A written disclosure that identifies any energy
services contractor that participated in the preparation

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of specifications. If no energy services contractor
participated in the preparation of specifications, then
the request for proposals must include a disclosure that no
energy services contractor participated in the preparation
of the specifications.
(c) The evaluation of offers shall analyze the estimates of
all costs of installations, modifications, or remodeling,
including, but not limited to, costs of a pre-installation
energy audit or analysis, design, engineering, installation,
maintenance, repairs, debt service, conversions to a different
energy or fuel source, or post-installation project
monitoring, data collection, and reporting. The evaluation
shall include a detailed analysis of whether either the energy
consumed or the operating costs, or both, will be reduced. If a
licensed architect or registered professional engineer on the
executive agency's or contracting authority's staff is
unavailable to serve as an evaluator, then the evaluation shall
include a registered professional engineer or architect, who is
retained by the executive agency or contracting authority. A
licensed architect or registered professional engineer
participating on an evaluation team under this Section must not
have any financial or contractual relationship with an offeror
or other source that would constitute a conflict of interest.
The contracting authority or executive agency facility may pay
a reasonable fee for evaluation of the proposal or include the
fee as part of the payments made under subsection (e) of this

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Section. Any contracting agency shall coordinate with the Board
to ensure that there are no conflicts with the proposals and
current or upcoming Board projects.
(d) 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 20-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 for the
Capital Development Board or as otherwise prescribed by
agreement between the Capital Development Board and the
contracting authority.
(e) 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
20 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

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the contract. The guaranteed energy savings contract may
provide for payments over a period of time, not to exceed 20
years from the date of final installation of the energy
conservation measures.
(f) The contracting authority may enter into an installment
payment contract or lease purchase agreement with a contractor
for services solicited under this Section or with a third
party, as authorized by law, for the funding or financing of
the purchase and installation of energy conservation measures.
The State of Illinois may issue certificates evidencing the
indebtedness incurred pursuant to the contracts. Each contract
or agreement entered into by a contracting authority pursuant
to this Section shall be authorized by official action of the
contracting authority. The authority granted in this Section is
in addition to any other authority granted by law. 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

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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.
(g) Guaranteed energy savings contracts may extend beyond
the fiscal year in which they become effective. The agency
responsible for payments under such a contract shall include in
its annual budget and appropriations measures for each
subsequent fiscal year any amounts payable under guaranteed
energy savings contracts during that fiscal year.
(h) In cooperation with the contracting authority, the
executive agency facility shall document the operational and
energy cost savings 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 (e) of this Section.
(i) 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. An executive agency facility or contracting

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authority that enters into such a contract or agreement may
covenant in the contract or agreement that payments made under
the contract or agreement shall be payable from the first funds
legally available in each fiscal year.
(j) Operating and maintenance funds and other amounts
appropriated for distribution to or reimbursement of an
executive agency facility or contracting authority shall not be
reduced as a result of energy savings realized from a
guaranteed energy savings contract or a lease purchase
agreement for the purchase and installation of energy
conservation measures.
(k) 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 Local Government Professional
Services Selection Act, and the Contractor Unified License and
Permit Bond Act.
(l) In order to protect the integrity of historic
buildings, no provision of this Section shall be interpreted to
require the implementation of energy conservation measures

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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.)