Bill Text: IL SB3711 | 2021-2022 | 102nd General Assembly | Introduced

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conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed.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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-21 - Referred to Assignments [SB3711 Detail]

Download: Illinois-2021-SB3711-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 SB3711 Introduced 1/21/2022, by Sen. Chapin Rose SYNOPSIS AS INTRODUCED:
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 minimize energy consumption and related environmental impacts, and reduce operating costs. 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.
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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 1. Short title. This Act may be cited as the Energy
Performance Contracting Act.
Section 5. Purpose. The purpose of this Act is to obtain
long-term energy and cost-savings for all governmental units
by facilitating prompt incorporation of energy conservation
improvements or energy production equipment, or both, in
connection with buildings or facilities owned, operated, or
under the supervision and control of all governmental units,
in cooperation with providers of such services and associated
materials from the private sector. These arrangements will
improve and protect the health, safety, security, and welfare
of the people of this State by promoting energy conservation
and independence, developing alternate sources of energy, and
fostering business activity.
Section 10. Definitions. As used in this Act:
"Cost-effective" means that the present value to a
governmental unit of the energy reasonably expected to be
saved or produced by a facility, activity, measure, or piece
of equipment over its useful life, including any compensation

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received from a utility, is greater than the net present value
of the costs of implementing, maintaining, and operating such
facility, activity, measure, or piece of equipment over its
useful life, when discounted at the cost of public borrowing.
"Cost-savings measure" means any facility improvement,
repair or alteration, or any equipment, fixture, or furnishing
to be added or used in any facility that is designed to reduce
energy consumption and operating costs or increase the
operating efficiency of facilities for their appointed
functions that are cost-effective. "Cost-savings measure"
includes, but is not limited to, one or more of the following:
(1) replacement or modification of lighting
components, fixtures, and systems;
(2) renewable energy and alternate energy systems;
(3) cogeneration systems that produce steam or forms
of energy, such as heat or electricity, for use primarily
within a building or complex of buildings;
(4) devices that reduce water consumption or sewer
charges, including water-conserving fixtures, appliances,
and equipment, water-conserving landscape irrigation
equipment, or the substitution of non-water using
fixtures, appliances, and equipment;
(5) landscaping measures that reduce watering demands
and capture and hold applied water and rainfall, including
landscape contouring, including the use of berms, swales,
and terraces, the use of soil amendments that increase the

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water-holding capacity of the soil, including compost, and
rainwater harvesting equipment and equipment to make use
of water collected as part of a storm- water system
installed for water quality control;
(6) equipment for recycling or reuse of water
originating on the premises or from other sources,
including treated municipal effluent;
(7) equipment needed to capture water from
nonconventional, alternate sources, including air
conditioning condensate or graywater, for non-potable
uses;
(8) metering equipment needed to segregate water use
in order to identify water conservation opportunities or
verify water savings;
(9) changes in operation and maintenance practices;
(10) indoor air quality improvements that conform to
applicable building code requirements;
(11) daylighting systems;
(12) insulating the building structure or systems in
the building;
(13) storm windows or doors, caulking or weather
stripping, multi-glazed windows or door systems,
heat-absorbing or heat-reflective glazed and coated window
and door systems, additional glazing, reductions in glass
area, or other window and door system modifications that
reduce energy consumption;

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(14) automated or computerized energy control systems;
(15) heating, ventilation, or air conditioning system
modifications or replacements;
(16) indoor air quality improvements that conform to
applicable building code requirements;
(17) energy recovery systems;
(18) steam trap improvement programs that reduce
operating costs;
(19) building operation programs that reduce utility
and operating costs including, but not limited to,
computerized energy management and consumption tracking
programs, staff and occupant training, and other similar
activities;
(20) any life safety measures that provide long-term
operating cost reductions and are in compliance with State
and local statute;
(21) any life safety measures related to compliance
with the federal Americans with Disabilities Act that
provide long-term operating cost reductions and are in
compliance with State and local statute;
(22) a program to reduce energy costs through rate
adjustments, load shifting to reduce peak demand, and use
of alternative energy suppliers, such as, but not limited
to:
(A) changes to more favorable rate schedules; and
(B) negotiation of lower rates, same supplier or

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new suppliers, where applicable; and
(C) auditing of energy service billing and meters;
(23) services to reduce utility costs by identifying
utility errors and optimizing existing rate schedules
under which service is provided; and
(24) any other installation, modification of
installation, or remodeling of building infrastructure
improvements that produce utility or operational cost
savings for their appointed functions in compliance with
applicable State and local building codes.
"Energy performance contract" or "energy services
agreement" means a contract between the governmental unit and
a qualified energy service provider for evaluation,
recommendation, and implementation of one or more cost-savings
measures. A performance contract may be structured as either:
(1) a guaranteed energy savings performance contract,
which shall include, at a minimum, the design and
installation of equipment, and, if applicable, operation
and maintenance of any of the measures implemented, and
guaranteed annual savings which must meet or exceed the
total annual contract payments made by the governmental
unit for that contract, including financing charges to be
incurred by the governmental unit over the life of the
contract; or
(2) a shared savings contract, which shall include
provisions mutually agreed upon by the governmental unit

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and the qualified provider or qualified energy service
company as to the negotiated rate of payments based upon
energy and operational cost-savings and a stipulated
maximum energy consumption level over the life of the
contract.
"Governmental unit" means any State agency, authority, or
any political subdivision of the State, including public
institutions of higher education and public community colleges
located in this State. "Governmental unit" does not include
units of local government, including counties, cities,
townships, villages, municipal governments, or local school
districts. Nothing in this Act prevents the Smart Energy
Design Assistance Center as the lead agency for the
development and promotion of a program from contracting or
partnering with units of local government or local school
districts throughout the State on a voluntary basis.
"Investment grade audit" means a study by the qualified
energy services provider selected for a particular energy
performance contract project which includes detailed
descriptions of the improvements recommended for the project,
the estimated costs of the improvements, and the utility and
operations and maintenance cost-savings projected to result
from the recommended improvements.
"Operation and maintenance cost-savings" means a
measurable decrease in operation and maintenance costs, and
future replacement expenditures, that are a direct result of

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the implementation of one or more utility cost-savings
measures. These savings shall be calculated in comparison with
an established baseline of operation and maintenance costs.
"Person" means any corporate or non-corporate entity or
individual of any type.
"Public building" means any structure, building, or
facility, including its equipment, furnishings, or appliances
that is owned or operated by a governmental unit.
"Qualified energy service provider" means a person with a
record of successful energy performance contract projects or a
person who: (1) is experienced in the design, implementation,
and installation of energy efficiency and facility improvement
measures; (2) has the technical capabilities to ensure such
measures generate energy and operational cost-savings; and (3)
has the ability to secure the financing necessary to support
energy savings guarantees.
"Utility cost-savings" means any utility expenses that are
eliminated or avoided on a long-term basis as a result of
equipment installed or modified, or services performed by a
qualified energy service provider. "Utility cost-savings" does
not include merely shifting personnel costs or similar
short-term cost-savings.
Section 15. Authorization.
(a) Each governmental unit shall implement cost-effective
conservation improvements and maintain efficient operation of

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its facilities in order to minimize energy consumption and
related environmental impacts, and reduce operating costs.
Each governmental unit shall undertake an energy audit and
implement cost-effective conservation measures. Energy
performance contracting shall be the preferred method for
completing energy audits and implementing cost-effective
conservation measures.
(b) 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. Cost-savings measures implemented under such
contracts shall comply with State or local building codes. Any
governmental unit may implement other capital improvements in
conjunction with a performance contract so long as the
measures that are being implemented to achieve energy and
operations and maintenance cost-savings are a significant
portion of an overall project. A governmental unit may enter
into an energy savings performance contract for a period of
more than one year only if the governmental unit finds that the
amount the governmental unit would spend on the energy or
water conservation measures will not exceed the amount to be
saved in energy, water, wastewater, and operating costs over 8
years from the date of installation.
Section 20. Smart Energy Design Assistance Center (SEDAC).
(a) The Smart Energy Design Assistance Center (SEDAC)

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based at the University of Illinois at Urbana-Champaign is
hereby designated to be the lead agency for the development
and promotion of a program of performance contracts in
governmental units. SEDAC will coordinate its activities with
the Capital Development Board. SEDAC, under the direction of
the Governor, will have the following duties with respect to
this program:
(1) assistance to the Capital Development Board to
assemble a list of qualified energy service providers and
to negotiate master service contracts and pricing
schedules with such qualified energy service providers;
(2) development of a standardized energy performance
contract process and standard energy performance contract
documents, including request for qualifications, request
for proposals, investment grade audit contract, energy
services agreement, including the form of the project
savings guarantee, and project financing agreement; and
(3) promotion of the energy performance contract
program to all governmental units.
(b) SEDAC shall establish guidelines and an approval
process for awarding energy performance contracts. The
guidelines adopted under this subsection (b) must require that
the cost-savings projected by a qualified provider be reviewed
by a licensed professional engineer who has a minimum of 3
years of experience in energy calculation and review, is not
an officer or employee of a qualified provider for the

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contract under review, and is not otherwise associated with
the contract. In conducting the review, the engineer shall
focus primarily on the proposed improvements from an
engineering perspective, the methodology and calculations
related to cost savings, increases in revenue, and, if
applicable, efficiency or accuracy of metering equipment. An
engineer who reviews a contract shall maintain the
confidentiality of any proprietary information the engineer
acquires while reviewing the contract.
(c) SEDAC shall assist governmental units in identifying,
evaluating, and implementing cost-effective conservation
projects at their facilities. The assistance shall include:
(1) notifying governmental units of their responsibilities
under this Act; (2) apprising governmental units of
opportunities to develop and finance energy performance
contracting projects; (3) providing technical and analytical
support, including procurement energy performance contracting
services; (4) reviewing verification procedures for energy
savings; and (5) assisting in the structuring and arranging of
financing for energy performance contracting projects.
(d) SEDAC is authorized to fix, charge, and collect
reasonable fees, not to exceed 2% of the total cost of the
energy performance contract project, for any administrative
support and resources or other services provided by SEDAC, or
its designee, under this subsection (d) from the governmental
units that use its technical support services. Governmental

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units are authorized to add the costs of these fees to the
total cost of the energy performance contract.
(e) The Governor is encouraged to develop and submit to
the General Assembly a regular or supplemental budget request
for the additional funds and staffing required by the Smart
Energy Design Assistance Center to fulfill the duties required
under this Section.
Section 25. Selection of a qualified energy service
provider. The State process of implementing energy performance
contracts for governmental units shall be as provided in this
Section.
(a) Regarding requests for qualifications, the Capital
Development Board is authorized to assemble a list of
qualified energy service providers, in accordance with the
provisions of the Illinois Procurement Code. The Capital
Development Board shall attempt to use objective criteria in
the selection process. The criteria for evaluation shall
include substantive factors to assess the capability of the
qualified energy service company or qualified provider in the
areas of design, engineering, installation, maintenance, and
repairs associated with performance contracts. The substantive
factors shall be as follows: (1) experience in conversions to
a different energy or fuel source, so long as it is associated
with a comprehensive energy efficiency retrofit; (2)
post-installation project monitoring, data collection, and

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reporting of savings; (3) overall project experience and
qualifications; (4) management capability; (5) ability to
access long-term financing; (6) experience with projects of
similar size and scope; and (7) other factors determined by
the governmental unit to be relevant and appropriate and
relate to the ability to perform the project.
(b) Regarding requests for proposals, before entering into
a performance contract under this Section, a governmental unit
shall issue a request for proposals from a minimum of 3
qualified energy service providers. A governmental unit may
thereafter award the performance contract to the qualified
energy service company or qualified provider that best meets
the needs of the governmental unit, which need not be the
lowest cost provided. A cost-effective feasibility analysis
shall be prepared in response to the request for proposals.
The feasibility analysis included in the response to the
request for proposals shall serve as the selection document
for purposes of selecting a qualified energy service provider
to engage in final contract negotiations. Factors to be
included in selecting among the selected energy service
providers include contract terms, comprehensiveness of the
proposal, comprehensiveness of cost-savings measures,
experience, quality of technical approach, and overall
benefits to the governmental unit.
Section 30. Investment grade audit and contract execution.

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(a) One qualified energy service provider selected as a
result of the process provided under subsection (b) of Section
25 shall prepare an investment grade energy audit, which, upon
acceptance, shall be part of the final energy performance
contract or energy services agreement which shall be executed
with the governmental unit. The investment grade energy audit
shall include estimates of the amounts by which utility
cost-savings and operation and maintenance cost-savings would
increase and estimates of all costs of such utility
cost-savings measures or energy-savings measures, including,
but not limited to, itemized costs of design, engineering,
equipment, materials, installation, maintenance, repairs, and
debt service.
(b) Notwithstanding the provisions of subsection (a), if
after preparation of the investment grade energy audit the
governmental unit decides not to execute an energy services
agreement, and the costs and benefits described in the energy
audit are not materially different from those described in the
feasibility study submitted in response to the request for
proposals, then the costs incurred in preparing the investment
grade energy audit shall be paid to the qualified energy
service provider by the governmental unit. Otherwise, the
costs of the investment grade energy audit shall be deemed
part of the costs of the energy performance contract or energy
services agreement.

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Section 35. Installment payment and lease-purchase
agreements.
(a) A governmental unit may use designated funds, bonds,
or master lease for any energy performance contract, including
purchases using installment payment contracts or
lease-purchase agreements, so long as that use is consistent
with the purpose of the appropriation.
(b) A guaranteed energy performance savings contract shall
provide for financing, including tax-exempt financing, by a
third party. The contract for third party financing may be
separate from the energy performance contract. A separate
contract for third party financing must include a provision
that the third party financier must not be granted rights or
privileges that exceed the rights and privileges available to
the guaranteed energy performance savings contractor.
Section 40. Payment schedule and savings. Each performance
contract shall provide that all payments between parties,
except obligations on termination of the contract before its
expiration, shall be made over time, and the objective of each
energy performance contract is implementation of cost-savings
measures and energy and operational cost-savings.
Section 45. Term of Contracts. An energy performance
contract, and payments provided thereunder, may extend beyond
the fiscal year in which the energy performance contract

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became effective, subject to appropriation of moneys, if
required by law, for costs incurred in future fiscal years.
The energy performance contract may extend for a term not to
exceed 25 years. The allowable length of the contract may also
reflect the useful life of the cost-savings measures. Energy
performance contracts may provide for payments over a period
of time not to exceed deadlines specified in the energy
performance contract from the date of the final installation
of the cost-saving measures.
Section 50. Allocation of obligations. Subject to
appropriations as provided in Sections 30 and 35 of this Act,
each governmental unit shall allocate sufficient moneys for
each fiscal year to make payment of any amounts payable by the
governmental unit under performance contracts during that
fiscal year.
Section 55. Use of moneys; reconciliation.
(a) The governmental unit engaging in the performance
contract shall retain the savings achieved by entering into
the performance contract. In no event shall the governmental
unit utilize those savings to supplant otherwise appropriated
funds for the governmental unit.
(b) Unless otherwise provided by law or ordinance, a
governmental unit may use funds designated for operating and
capital expenditures or utilities for any performance

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contract, including, without limitation, contracts entered
into under Section 25 of this Act.
(c) The energy performance contract may provide that
reconciliation of the amounts owed under an energy performance
contract shall occur in a period beyond one year with final
reconciliation occurring within the term of the performance
contract.
(d) The energy performance contract shall require the
qualified provider to provide to the governmental unit an
annual reconciliation of the guaranteed energy cost-savings.
If the reconciliation reveals a shortfall in annual energy
cost savings, the qualified provider is liable for that
shortfall. If the reconciliation reveals an excess in annual
energy cost savings, the excess savings may be used to cover
potential energy cost-savings shortages in subsequent contract
years.
Section 60. Monitoring; reports.
(a) During the term of each energy performance contract,
the qualified energy service company or qualified provider
shall monitor the reductions in energy consumption and
cost-savings attributable to the cost-savings measures
installed under the performance contract, and shall, no less
than annually, prepare and provide a report to the
governmental unit documenting the performance of the
cost-savings measures to the governmental unit.

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(b) The qualified provider or qualified energy service
company and governmental unit may agree to make modifications
in calculating savings based on any of the following
occurrences:
(1) subsequent material change to the baseline energy
consumption identified at the beginning of the performance
contract;
(2) changes in utility rates;
(3) changes in the number of days in the utility
billing cycle;
(4) changes in the total square footage of the
building;
(5) changes in the operational schedule of the
facility;
(6) changes in facility temperature;
(7) material change in the weather;
(8) material changes in the amount of equipment or
lighting used at the facility; or
(9) any other change which reasonably would be
expected to modify energy use or energy costs.
(c) For all projects carried out under this Act, the
governmental unit shall report the name of the project, the
project host, the investment on the project, and the expected
energy savings to the Illinois Commerce Commission, and shall
file with the Illinois Commerce Commission a copy of all
reconciliation reports delivered under this subsection (c).

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The Illinois Commerce Commission may report energy savings
from these projects to the federal Energy Information
Administration under the Energy Policy Act of 1992 reporting
standards.
Section 65. Contingency provisions. Performance contracts
shall include contingency provisions if actual savings do not
meet predicted savings.
Section 70. Use of savings from performance contracts.
Governmental units may direct savings realized under the
performance contract to contract payment and other expenses as
they deem necessary. Governmental units are encouraged to
reinvest savings whenever practical into cost-savings
measures, so long as the governmental unit is satisfying all
obligations under the performance contract.
Section 75. Act takes precedence; repeal of prior
conflicting statutes. In case of any conflict between the
provisions of this Act and any other law, the provisions of
this Act shall prevail and control. The provisions of any
statute enacted prior to this Act which are inconsistent with
this Act are hereby repealed. The Attorney General shall
consult with the Smart Energy Design Assistance Center (SEDAC)
in construing this Section.

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Section 100. The Illinois Procurement Code is amended by
changing Sections 20-60 and 40-25 as follows:
(30 ILCS 500/20-60)
(Text of Section before amendment by P.A. 101-657, Article
40, Section 40-125)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract 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. Third parties may
lease State-owned dark fiber networks for any period of time
deemed to be in the best interest of the State, but not
exceeding 20 years. 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 energy conservation
program contracts or energy savings contracts or leases shall
be in accordance with the provisions of Section 25-45. 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

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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
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).

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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.
(d) Notwithstanding the provisions of subsection (a) of
this Section, the Department of Innovation and Technology may
enter into leases for dark fiber networks for any period of
time deemed to be in the best interests of the State but not
exceeding 20 years inclusive. The Department of Innovation and
Technology may lease dark fiber networks from third parties
only for the primary purpose of providing services (i) to the
offices of Governor, Lieutenant Governor, Attorney General,
Secretary of State, Comptroller, or Treasurer and State
agencies, as defined under Section 5-15 of the Civil
Administrative Code of Illinois or (ii) for anchor
institutions, as defined in Section 7 of the Illinois Century
Network Act. Dark fiber network lease contracts shall be
subject to all other provisions of this Code and any
applicable rules or requirements, including, but not limited
to, publication of lease solicitations, use of standard State
contracting terms and conditions, and approval of vendor
certifications and financial disclosures.
(e) As used in this Section, "dark fiber network" means a
network of fiber optic cables laid but currently unused by a
third party that the third party is leasing for use as network

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infrastructure.
(f) No vendor shall be eligible for renewal of a contract
when that vendor has failed to meet the goals agreed to in the
vendor's utilization plan unless the State agency has
determined that the vendor made good faith efforts toward
meeting the contract goals and has issued a waiver or that
vendor is not otherwise excused from compliance by the chief
procurement officer in consultation with the purchasing State
agency. The form and content of the waiver shall be prescribed
by each chief procurement officer who shall maintain on his or
her official website a database of waivers granted under this
Section with respect to contracts under his or her
jurisdiction. The database shall be updated periodically and
shall be searchable by contractor name and by contracting
State agency or public institution of higher education.
(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;
101-81, eff. 7-12-19; 101-657, Article 5, Section 5-5, eff.
7-1-21 (See Section 25 of P.A. 102-29 for effective date of
P.A. 101-657, Article 5, Section 5-5); 102-29, eff. 6-25-21.)
(Text of Section after amendment by P.A. 101-657, Article
40, Section 40-125)
Sec. 20-60. Duration of contracts.
(a) Maximum duration. A contract 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

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1, 2010, of proposed contract renewals. Third parties may
lease State-owned dark fiber networks for any period of time
deemed to be in the best interest of the State, but not
exceeding 20 years. 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 energy conservation
program contracts or energy savings contracts or leases shall
be in accordance with the provisions of 45 of the Energy
Performance Contracting Act Section 25-45. 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 and the Commission on Equity and Inclusion prior to
entering into any extension or renewal if the cost associated
with the extension or renewal exceeds $249,999. The
Procurement Policy Board or the Commission on Equity and
Inclusion may object to the proposed extension or renewal
within 30 calendar days and require a hearing before the Board

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or the Commission on Equity and Inclusion prior to entering
into the extension or renewal. If the Procurement Policy Board
or the Commission on Equity and Inclusion 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
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 or the
Commission on Equity and Inclusion 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 and the Commission on
Equity and Inclusion shall each file a report with the General
Assembly identifying for the previous fiscal year (i) the
proposed extensions or renewals that were filed and whether
such extensions and renewals were objected to and (ii) the
contracts exempt from this subsection.

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(d) Notwithstanding the provisions of subsection (a) of
this Section, the Department of Innovation and Technology may
enter into leases for dark fiber networks for any period of
time deemed to be in the best interests of the State but not
exceeding 20 years inclusive. The Department of Innovation and
Technology may lease dark fiber networks from third parties
only for the primary purpose of providing services (i) to the
offices of Governor, Lieutenant Governor, Attorney General,
Secretary of State, Comptroller, or Treasurer and State
agencies, as defined under Section 5-15 of the Civil
Administrative Code of Illinois or (ii) for anchor
institutions, as defined in Section 7 of the Illinois Century
Network Act. Dark fiber network lease contracts shall be
subject to all other provisions of this Code and any
applicable rules or requirements, including, but not limited
to, publication of lease solicitations, use of standard State
contracting terms and conditions, and approval of vendor
certifications and financial disclosures.
(e) As used in this Section, "dark fiber network" means a
network of fiber optic cables laid but currently unused by a
third party that the third party is leasing for use as network
infrastructure.
(f) No vendor shall be eligible for renewal of a contract
when that vendor has failed to meet the goals agreed to in the
vendor's utilization plan, as defined in Section 2 of the
Business Enterprise for Minorities, Women, and Persons with

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Disabilities Act, unless the State agency has determined that
the vendor made good faith efforts toward meeting the contract
goals. If the State agency determines that the vendor made
good faith efforts, the agency may issue a waiver after
concurrence by the chief procurement officer. The form and
content of the waiver shall be prescribed by each chief
procurement officer who shall maintain on his or her official
website a database of waivers granted under this Section with
respect to contracts under his or her jurisdiction. The
database shall be updated periodically and shall be searchable
by contractor name and by contracting State agency or public
institution of higher education.
(Source: P.A. 101-81, eff. 7-12-19; 101-657, Article 5,
Section 5-5, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
effective date of P.A. 101-657, Article 5, Section 5-5);
101-657, Article 40, Section 40-125, eff. 1-1-22; 102-29, eff.
6-25-21.)
(30 ILCS 500/40-25)
Sec. 40-25. Length of leases.
(a) Maximum term. Except as otherwise provided under
subsection (a-5), leases shall be for a term not to exceed 10
years inclusive, beginning January, 1, 2010, of proposed
contract renewals and shall include a termination option in
favor of the State after 5 years. The length of energy
conservation program contracts or energy savings contracts or

SB3711 - 27 - LRB102 23140 RJF 32300 b
leases shall be in accordance with the provisions of Section
45 of the Energy Performance Contracting Act 25-45.
(a-5) Extended term. A lease for real property owned by
the University of Illinois to be used by the University of
Illinois at Chicago for an ambulatory surgical center, which
would include both clinical services and retail space, may
exceed 10 years in length where: (i) the lease requires the
lessor to make capital improvements in excess of $100,000; and
(ii) the Board of Trustees of the University of Illinois
determines a term of more than 10 years is necessary and is in
the best interest of the University. A lease under this
subsection (a-5) may not exceed 30 years in length.
(b) Renewal. Leases may include a renewal option. An
option to renew may be exercised only when a State purchasing
officer determines in writing that renewal is in the best
interest of the State and notice of the exercise of the option
is published in the appropriate volume of the Procurement
Bulletin at least 30 calendar days prior to the exercise of the
option.
(c) Subject to appropriation. All leases 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 lease.
(d) Holdover. Beginning January 1, 2010, no lease may
continue on a month-to-month or other holdover basis for a
total of more than 6 months. Beginning July 1, 2010, the

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Comptroller shall withhold payment of leases beyond this
holdover period.
(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
101-426, eff. 1-1-20.)
(30 ILCS 500/25-45 rep.)
Section 105. The Illinois Procurement Code is amended by
repealing Section 25-45.
Section 995. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.
Section 999. Effective date. This Act takes effect upon
becoming law.