HB2582ham001 100TH GENERAL ASSEMBLY

Rep. Robert W. Pritchard

Filed: 3/17/2017

10000HB2582ham001 LRB100 05513 MLM 23718 a

AMENDMENT TO HOUSE BILL 2582

AMENDMENT NO. ______. Amend House Bill 2582 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Sections 20-60 and 25-45 as follows:

(30 ILCS 500/20-60)

Sec. 20-60. Duration of contracts.

(a) Maximum duration. A contract, other than a contract entered into pursuant to the State University Certificates of Participation Act, may be entered into for any period of time deemed to be in the best interests of the State but not exceeding 10 years inclusive, beginning January 1, 2010, of proposed contract renewals. The length of a lease for real property or capital improvements shall be in accordance with the provisions of Section 40-25. The length of a guaranteed energy savings contract shall be in accordance with the provisions of Section 25-45 of this Code and may be entered into for any period of time deemed to be in the best interest of the State, but shall not exceed 15 years in length. A contract for bond or mortgage insurance awarded by the Illinois Housing Development Authority, however, may be entered into for any period of time less than or equal to the maximum period of time that the subject bond or mortgage may remain outstanding.

(b) Subject to appropriation. All contracts made or entered into shall recite that they are subject to termination and cancellation in any year for which the General Assembly fails to make an appropriation to make payments under the terms of the contract.

(c) The chief procurement officer shall file a proposed extension or renewal of a contract with the Procurement Policy Board prior to entering into any extension or renewal if the cost associated with the extension or renewal exceeds $249,999. The Procurement Policy Board may object to the proposed extension or renewal within 30 calendar days and require a hearing before the Board prior to entering into the extension or renewal. If the Procurement Policy Board does not object within 30 calendar days or takes affirmative action to recommend the extension or renewal, the chief procurement officer may enter into the extension or renewal of a contract. This subsection does not apply to any emergency procurement, any procurement under Article 40, or any procurement exempted by Section 1-10(b) of this Code. If any State agency contract is paid for in whole or in part with federal-aid funds, grants, or loans and the provisions of this subsection would result in the loss of those federal-aid funds, grants, or loans, then the contract is exempt from the provisions of this subsection in order to remain eligible for those federal-aid funds, grants, or loans, and the State agency shall file notice of this exemption with the Procurement Policy Board prior to entering into the proposed extension or renewal. Nothing in this subsection permits a chief procurement officer to enter into an extension or renewal in violation of subsection (a). By August 1 each year, the Procurement Policy Board shall file a report with the General Assembly identifying for the previous fiscal year (i) the proposed extensions or renewals that were filed with the Board and whether the Board objected and (ii) the contracts exempt from this subsection.

(Source: P.A. 95-344, eff. 8-21-07; 96-15, eff. 6-22-09; 96-795, eff. 7-1-10 (see Section 5 of P.A. 96-793 for the effective date of changes made by P.A. 96-795); 96-920, eff. 7-1-10; 96-1478, eff. 8-23-10.)

(30 ILCS 500/25-45)

Sec. 25-45. Executive agency energy conservation and saving measures Energy conservation program.

(a) Definitions. As used in this Section:

"Board" means the Capital Development Board or its successors.

"Contracting authority" means the Department, the Board, or other such agencies as may be delegated to execute certain of its statutory procurement functions through intergovernmental agreements specifically developed for the purpose of securing energy conservation services.

"Department" means the Department of Central Management Services acting in its capacity as the statutory owner and manager of all properties owned and operated by the State of Illinois on behalf of agencies, boards, and commissions functioning under the executive authority of the Governor.

"Energy conservation measure" means any improvement, repair, alteration, or betterment of any executive agency facility or any equipment, fixture, or furnishing to be added to or used in an executive agency facility, that is designed to reduce energy consumption or operating costs, and may include, but is not limited to, one or more of the following:

(1) Insulation of the building structure or systems within the building.

(2) Storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption.

(3) Automated or computerized energy control systems.

(4) Heating, ventilating, or air conditioning system, modifications, or replacements.

(5) Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a building, unless an increase in illumination is necessary to conform to the applicable State or local building code for the lighting system after the proposed modifications are made.

(6) Energy recovery systems.

"Executive agency facility" means a building owned and operated by the State of Illinois through an agency, board, or commission statutorily functioning under the executive authority of the Governor and under the general property management authority of the Department of Central Management Services.

"Guaranteed energy savings contract" means a contract for: (i) the implementation of an energy audit, data collection, and other related analyses preliminary to the undertaking of energy conservation measures; (ii) the evaluation and recommendation of energy conservation measures; (iii) the implementation of one or more energy conservation measures; and (iv) the implementation of project monitoring and data collection to verify post installation energy consumption and energy related operating costs. The contract shall provide that all payments, except obligations on termination of the contract before its expiration, are to be made over time and that the savings are guaranteed to the extent necessary to pay the costs of the energy conservation measures. "Energy savings" may include energy reduction and offsetting sources of renewable energy funds, including renewable energy credits and carbon credits.

"Qualified provider" means a person or business whose employees are experienced and trained in the design, implementation, or installation of energy conservation measures. The minimum training required for any person or employee under this Section shall be the satisfactory completion of at least 40 hours of course instruction dealing with energy conservation measures, but the person or business may not engage in the practice of architecture, engineering, structural engineering, or plumbing unless the person is licensed or the business is registered in accordance with the appropriate Act or Law or the applicable rules, as identified in subsection (i) of this Section. A qualified provider to whom the contract is awarded shall give a sufficient bond to the executive agency or for its faithful performance.

(b) Before entering into a guaranteed energy savings contract, the contracting authority shall issue a request for proposals in accordance with this Code requesting competitive sealed offers for innovative solutions and conservation measures. A request for proposals shall be published in the volume of the Illinois Procurement Bulletin under the authority of the chief procurement officer for at least 30 days before offers are due. No person or business shall submit specifications to the contracting authority unless requested to do so by an employee of the State. No person or business who contracts with the contracting authority to write specifications, or otherwise provides specifications, for a particular procurement need shall submit a bid or proposal or receive a contract for that procurement need.

(c) After evaluating the proposals, a contracting authority for an executive agency facility may enter into a guaranteed energy savings contract with the best-qualified offeror if the contracting authority finds that the amount it would spend on the energy conservation measures recommended in the proposal would not exceed the amount to be saved in either energy or operational costs, or both, within a 15-year period from the date of installation if the recommendations in the proposal are followed. Contracts let or awarded must be published in the volume of the Illinois Procurement Bulletin under the authority of the chief procurement officer.

(d) The guaranteed energy savings contract shall include the contractor's guarantee that either the energy or operational cost savings, or both, will meet or exceed within 15 years the costs of the energy conservation measures. The contractor shall reimburse the State for any shortfall of guaranteed energy savings projected in the contract. A contractor shall provide a sufficient bond, as determined by the State, to the contracting authority for the installation and the faithful performance of all the measures included in the contract. The guaranteed energy savings contract may provide for payments over a period of time, not to exceed 15 years from the date of final installation of the energy conservation measures.

(e) If an energy audit is performed by an energy services contractor for an executive agency facility within the 3 years immediately preceding the request for proposals, then the contracting authority must publish as a reference document in the solicitation for energy conservation measures the following:

(1) an executive summary of the energy audit, provided that the contracting authority and executive agency facility may exclude any proprietary or trademarked information or practices; or

(2) the energy audit, provided that the contracting authority and executive agency facility may redact any proprietary or trademarked information or practices.

An executive agency facility or contracting authority may not withhold the disclosure of information related to: (i) the executive agency facility's consumption of energy, (ii) the physical condition of the executive agency's facilities, and (iii) any limitations prescribed by the executive agency facility or contracting authority.

(f) Guaranteed energy savings contracts may extend beyond the fiscal year in which they become effective. However, subsequent fiscal year costs shall be subject to appropriations that cover the defined work.

(g) In cooperation with the contracting authority, the executive agency facility shall document the energy cost savings for measures installed as specified in the guaranteed energy savings contract and designate and appropriate that amount for an annual payment of the contract. If the annual energy savings are less than projected under the guaranteed energy savings contract the contractor shall pay the difference as provided in subsection (d) of this Section.

(h) An executive agency facility or contracting authority may use funds designated for operating or capital expenditures for any guaranteed energy savings contract including purchases using installment payment contracts or lease purchase agreements.

(i) Other State laws and related administrative requirements apply to this Section, including, but not limited to, the following laws and related administrative requirements: the Illinois Human Rights Act, the Prevailing Wage Act, the Public Construction Bond Act, the Employment of Illinois Workers on Public Works Act, the Freedom of Information Act, the Open Meetings Act, the Illinois Architecture Practice Act of 1989, the Professional Engineering Practice Act of 1989, the Structural Engineering Practice Act of 1989, the Illinois Plumbing License Law, and the Contractor Unified License and Permit Bond Act.

(j) In order to protect the integrity of historic buildings, no provision of this Section shall be interpreted to require the implementation of energy conservation measures that conflict with respect to any property eligible for, nominated to, or entered on the National Register of Historic Places, pursuant to the federal National Historic Preservation Act of 1966, or the Illinois Register of Historic Places, pursuant to the Illinois Historic Preservation Act. State purchasing officers may enter into energy conservation program contracts that provide for utility cost savings. The chief procurement officer shall promulgate and adopt rules for the implementation of this Section.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)".