Illinois General Assembly - Full Text of HB2582
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Full Text of HB2582  100th General Assembly

HB2582 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2582

 

Introduced , by Rep. Robert W. Pritchard

 

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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A BILL FOR

 

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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Procurement Code is amended by
5changing Section 25-45 as follows:
 
6    (30 ILCS 500/25-45)
7    Sec. 25-45. Executive agency energy conservation and
8saving measures Energy conservation program.
9    (a) Definitions. As used in this Section:
10    "Board" means the Capital Development Board or its
11successors.
12    "Contracting authority" means the Department, the Board,
13or other such agencies as may be delegated to execute certain
14of its statutory procurement functions through
15intergovernmental agreements specifically developed for the
16purpose of securing energy conservation services.
17    "Department" means the Department of Central Management
18Services acting in its capacity as the statutory owner and
19manager of all properties owned and operated by the State of
20Illinois on behalf of agencies, boards, and commissions
21functioning under the executive authority of the Governor.
22    "Energy conservation measure" means any improvement,
23repair, alteration, or betterment of any executive agency

 

 

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1facility or any equipment, fixture, or furnishing to be added
2to or used in an executive agency facility, that is designed to
3reduce energy consumption or operating costs, and may include,
4but is not limited to, one or more of the following:
5        (1) Insulation of the building structure or systems
6    within the building.
7        (2) Storm windows or doors, caulking or weather
8    stripping, multiglazed windows or doors, heat-absorbing or
9    heat-reflective glazed and coated window or door systems,
10    additional glazing, reductions in glass area, or other
11    window and door system modifications that reduce energy
12    consumption.
13        (3) Automated or computerized energy control systems.
14        (4) Heating, ventilating, or air conditioning system,
15    modifications, or replacements.
16        (5) Replacement or modification of lighting fixtures
17    to increase the energy efficiency of the lighting system
18    without increasing the overall illumination of a building,
19    unless an increase in illumination is necessary to conform
20    to the applicable State or local building code for the
21    lighting system after the proposed modifications are made.
22        (6) Energy recovery systems.
23        (7) Energy conservation measures that provide
24    long-term operating cost reductions.
25    "Executive agency facility" means a building owned and
26operated by the State of Illinois through an agency, board, or

 

 

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1commission statutorily functioning under the executive
2authority of the Governor and under the general property
3management authority of the Department of Central Management
4Services.
5    "Guaranteed energy savings contract" means a contract for:
6(i) the implementation of an energy audit, data collection, and
7other related analyses preliminary to the undertaking of energy
8conservation measures; (ii) the evaluation and recommendation
9of energy conservation measures; (iii) the implementation of
10one or more energy conservation measures; and (iv) the
11implementation of project monitoring and data collection to
12verify post installation energy consumption and energy related
13operating costs. The contract shall provide that all payments,
14except obligations on termination of the contract before its
15expiration, are to be made over time and that the savings are
16guaranteed to the extent necessary to pay the costs of the
17energy conservation measures. "Energy savings" may include
18energy reduction and offsetting sources of renewable energy
19funds, including renewable energy credits and carbon credits.
20    "Qualified provider" means a person whose employees are
21experienced and trained in the design, implementation, or
22installation of energy conservation measures. The minimum
23training required for any person or employee under this Section
24shall be the satisfactory completion of at least 40 hours of
25course instruction dealing with energy conservation measures.
26A qualified provider to whom the contract is awarded shall give

 

 

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1a sufficient bond to the executive agency or for its faithful
2performance.
3    (b) Before entering into a guaranteed energy savings
4contract, the contracting authority shall issue a request for
5proposals in accordance with Article 30 of this Code requesting
6competitive sealed offers for innovative solutions and
7conservation measures. A request for proposals shall be
8published in the volume of the Illinois Procurement Bulletin
9under the authority of the chief procurement officer for the
10Capital Development Board under Section 10-5 of the Illinois
11Procurement Code for at least 30 days before offers are due.
12The request for proposals shall, at a minimum, include all of
13the following:
14        (1) The name and address of the executive agency.
15        (2) The name, address, title, and phone number of an
16    executive agency contact person who will respond to
17    questions regarding the request for proposals.
18        (3) Notice indicating that the contracting authority
19    is requesting qualified providers to propose energy
20    conservation measures through a guaranteed energy savings
21    contract.
22        (4) The date, time, and place where offers must be
23    received.
24        (5) The evaluation criteria for evaluating offers.
25        (6) Any other stipulations and clarifications the
26    contracting authority or executive agency facility may

 

 

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1    require.
2        (7) A written disclosure that identifies any energy
3    services contractor that participated in the preparation
4    of specifications. If no energy services contractor
5    participated in the preparation of specifications, then
6    the request for proposals must include a disclosure that no
7    energy services contractor participated in the preparation
8    of the specifications.
9    (c) The evaluation of offers shall analyze the estimates of
10all costs of installations, modifications, or remodeling,
11including, but not limited to, costs of a pre-installation
12energy audit or analysis, design, engineering, installation,
13maintenance, repairs, debt service, conversions to a different
14energy or fuel source, or post-installation project
15monitoring, data collection, and reporting. The evaluation
16shall include a detailed analysis of whether either the energy
17consumed or the operating costs, or both, will be reduced. If a
18licensed architect or registered professional engineer on the
19executive agency's or contracting authority's staff is
20unavailable to serve as an evaluator, then the evaluation shall
21include a registered professional engineer or architect, who is
22retained by the executive agency or contracting authority. A
23licensed architect or registered professional engineer
24participating on an evaluation team under this Section must not
25have any financial or contractual relationship with an offeror
26or other source that would constitute a conflict of interest.

 

 

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1The contracting authority or executive agency facility may pay
2a reasonable fee for evaluation of the proposal or include the
3fee as part of the payments made under subsection (e) of this
4Section. Any contracting agency shall coordinate with the Board
5to ensure that there are no conflicts with the proposals and
6current or upcoming Board projects.
7    (d) After evaluating the proposals, a contracting
8authority for an executive agency facility may enter into a
9guaranteed energy savings contract with the best-qualified
10offeror if the contracting authority finds that the amount it
11would spend on the energy conservation measures recommended in
12the proposal would not exceed the amount to be saved in either
13energy or operational costs, or both, within a 20-year period
14from the date of installation if the recommendations in the
15proposal are followed. Contracts let or awarded must be
16published in the volume of the Illinois Procurement Bulletin
17under the authority of the chief procurement officer for the
18Capital Development Board or as otherwise prescribed by
19agreement between the Capital Development Board and the
20contracting authority.
21    (e) The guaranteed energy savings contract shall include
22the contractor's guarantee that either the energy or
23operational cost savings, or both, will meet or exceed within
2420 years the costs of the energy conservation measures. The
25contractor shall reimburse the State for any shortfall of
26guaranteed energy savings projected in the contract. A

 

 

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1contractor shall provide a sufficient bond, as determined by
2the State, to the contracting authority for the installation
3and the faithful performance of all the measures included in
4the contract. The guaranteed energy savings contract may
5provide for payments over a period of time, not to exceed 20
6years from the date of final installation of the energy
7conservation measures.
8    (f) The contracting authority may enter into an installment
9payment contract or lease purchase agreement with a contractor
10for services solicited under this Section or with a third
11party, as authorized by law, for the funding or financing of
12the purchase and installation of energy conservation measures.
13The State of Illinois may issue certificates evidencing the
14indebtedness incurred pursuant to the contracts. Each contract
15or agreement entered into by a contracting authority pursuant
16to this Section shall be authorized by official action of the
17contracting authority. The authority granted in this Section is
18in addition to any other authority granted by law. If an energy
19audit is performed by an energy services contractor for an
20executive agency facility within the 3 years immediately
21preceding the request for proposals, then the contracting
22authority must publish as a reference document in the
23solicitation for energy conservation measures the following:
24        (1) an executive summary of the energy audit, provided
25    that the contracting authority and executive agency
26    facility may exclude any proprietary or trademarked

 

 

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1    information or practices; or
2        (2) the energy audit, provided that the contracting
3    authority and executive agency facility may redact any
4    proprietary or trademarked information or practices.
5    An executive agency facility or contracting authority may
6not withhold the disclosure of information related to: (i) the
7executive agency facility's consumption of energy, (ii) the
8physical condition of the executive agency's facilities, and
9(iii) any limitations prescribed by the executive agency
10facility or contracting authority.
11    (g) Guaranteed energy savings contracts may extend beyond
12the fiscal year in which they become effective. The agency
13responsible for payments under such a contract shall include in
14its annual budget and appropriations measures for each
15subsequent fiscal year any amounts payable under guaranteed
16energy savings contracts during that fiscal year.
17    (h) In cooperation with the contracting authority, the
18executive agency facility shall document the operational and
19energy cost savings specified in the guaranteed energy savings
20contract and designate and appropriate that amount for an
21annual payment of the contract. If the annual energy savings
22are less than projected under the guaranteed energy savings
23contract the contractor shall pay the difference as provided in
24subsection (e) of this Section.
25    (i) An executive agency facility or contracting authority
26may use funds designated for operating or capital expenditures

 

 

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1for any guaranteed energy savings contract including purchases
2using installment payment contracts or lease purchase
3agreements. An executive agency facility or contracting
4authority that enters into such a contract or agreement may
5covenant in the contract or agreement that payments made under
6the contract or agreement shall be payable from the first funds
7legally available in each fiscal year.
8    (j) Operating and maintenance funds and other amounts
9appropriated for distribution to or reimbursement of an
10executive agency facility or contracting authority shall not be
11reduced as a result of energy savings realized from a
12guaranteed energy savings contract or a lease purchase
13agreement for the purchase and installation of energy
14conservation measures.
15    (k) Other State laws and related administrative
16requirements apply to this Section, including, but not limited
17to, the following laws and related administrative
18requirements: the Illinois Human Rights Act, the Prevailing
19Wage Act, the Public Construction Bond Act, the Employment of
20Illinois Workers on Public Works Act, the Freedom of
21Information Act, the Open Meetings Act, the Illinois
22Architecture Practice Act of 1989, the Professional
23Engineering Practice Act of 1989, the Structural Engineering
24Practice Act of 1989, the Local Government Professional
25Services Selection Act, and the Contractor Unified License and
26Permit Bond Act.

 

 

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1    (l) In order to protect the integrity of historic
2buildings, no provision of this Section shall be interpreted to
3require the implementation of energy conservation measures
4that conflict with respect to any property eligible for,
5nominated to, or entered on the National Register of Historic
6Places, pursuant to the federal National Historic Preservation
7Act of 1966, or the Illinois Register of Historic Places,
8pursuant to the Illinois Historic Preservation Act.
9State purchasing officers may enter into energy conservation
10program contracts that provide for utility cost savings. The
11chief procurement officer shall promulgate and adopt rules for
12the implementation of this Section.
13(Source: P.A. 90-572, eff. date - See Sec. 99-5.)