SB0950 100TH GENERAL ASSEMBLY

LRB100 04372 MLM 14378 b

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.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

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 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 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.

(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 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 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 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 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 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 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.)