102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB1700

 

Introduced 2/26/2021, 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conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed.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.


LRB102 15500 RJF 20863 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB1700LRB102 15500 RJF 20863 b

1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Energy
5Performance Contracting Act.
 
6    Section 5. Purpose. The purpose of this Act is to obtain
7long-term energy and cost-savings for all governmental units
8by facilitating prompt incorporation of energy conservation
9improvements or energy production equipment, or both, in
10connection with buildings or facilities owned, operated, or
11under the supervision and control of all governmental units,
12in cooperation with providers of such services and associated
13materials from the private sector. These arrangements will
14improve and protect the health, safety, security, and welfare
15of the people of this State by promoting energy conservation
16and independence, developing alternate sources of energy, and
17fostering business activity.
 
18    Section 10. Definitions. As used in this Act:
19    "Cost-effective" means that the present value to a
20governmental unit of the energy reasonably expected to be
21saved or produced by a facility, activity, measure, or piece
22of equipment over its useful life, including any compensation

 

 

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1received from a utility, is greater than the net present value
2of the costs of implementing, maintaining, and operating such
3facility, activity, measure, or piece of equipment over its
4useful life, when discounted at the cost of public borrowing.
5    "Cost-savings measure" means any facility improvement,
6repair or alteration, or any equipment, fixture, or furnishing
7to be added or used in any facility that is designed to reduce
8energy consumption and operating costs or increase the
9operating efficiency of facilities for their appointed
10functions that are cost effective. "Cost-savings measure"
11includes, but is not limited to, one or more of the following:
12        (1) replacement or modification of lighting
13    components, fixtures, and systems;
14        (2) renewable energy and alternate energy systems;
15        (3) cogeneration systems that produce steam or forms
16    of energy, such as heat or electricity, for use primarily
17    within a building or complex of buildings;
18        (4) devices that reduce water consumption or sewer
19    charges, including water-conserving fixtures, appliances,
20    and equipment, water-conserving landscape irrigation
21    equipment, or the substitution of non-water using
22    fixtures, appliances, and equipment;
23        (5) landscaping measures that reduce watering demands
24    and capture and hold applied water and rainfall, including
25    landscape contouring, including the use of berms, swales,
26    and terraces, the use of soil amendments that increase the

 

 

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

 

 

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

 

 

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1        new suppliers, where applicable; and
2            (C) auditing of energy service billing and meters;
3        (23) services to reduce utility costs by identifying
4    utility errors and optimizing existing rate schedules
5    under which service is provided; and
6        (24) any other installation, modification of
7    installation, or remodeling of building infrastructure
8    improvements that produce utility or operational cost
9    savings for their appointed functions in compliance with
10    applicable State and local building codes.
11    "Energy performance contract" or "energy services
12agreement" means a contract between the governmental unit and
13a qualified energy service provider for evaluation,
14recommendation, and implementation of one or more cost-savings
15measures. A performance contract may be structured as either:
16        (1) a guaranteed energy savings performance contract,
17    which shall include, at a minimum, the design and
18    installation of equipment, and, if applicable, operation
19    and maintenance of any of the measures implemented, and
20    guaranteed annual savings which must meet or exceed the
21    total annual contract payments made by the governmental
22    unit for that contract, including financing charges to be
23    incurred by the governmental unit over the life of the
24    contract; or
25        (2) a shared savings contract, which shall include
26    provisions mutually agreed upon by the governmental unit

 

 

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1    and the qualified provider or qualified energy service
2    company as to the negotiated rate of payments based upon
3    energy and operational cost-savings and a stipulated
4    maximum energy consumption level over the life of the
5    contract.
6    "Governmental unit" means any State agency, authority, or
7any political subdivision of the State, including public
8institutions of higher education and public community colleges
9located in this State. "Governmental unit" does not include
10units of local government, including counties, cities,
11townships, villages, municipal governments, or local school
12districts. Nothing in this Act prevents the Smart Energy
13Design Assistance Center as the lead agency for the
14development and promotion of a program from contracting or
15partnering with units of local government or local school
16districts throughout the State on a voluntary basis.
17    "Investment grade audit" means a study by the qualified
18energy services provider selected for a particular energy
19performance contract project which includes detailed
20descriptions of the improvements recommended for the project,
21the estimated costs of the improvements, and the utility and
22operations and maintenance cost-savings projected to result
23from the recommended improvements.
24    "Operation and maintenance cost-savings" means a
25measurable decrease in operation and maintenance costs, and
26future replacement expenditures, that are a direct result of

 

 

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1the implementation of one or more utility cost-savings
2measures. These savings shall be calculated in comparison with
3an established baseline of operation and maintenance costs.
4    "Person" means any corporate or non-corporate entity or
5individual of any type.
6    "Public building" means any structure, building, or
7facility, including its equipment, furnishings, or appliances
8that is owned or operated by a governmental unit.
9    "Qualified energy service provider" means a person with a
10record of successful energy performance contract projects or a
11person who: (1) is experienced in the design, implementation,
12and installation of energy efficiency and facility improvement
13measures; (2) has the technical capabilities to ensure such
14measures generate energy and operational cost-savings; and (3)
15has the ability to secure the financing necessary to support
16energy savings guarantees.
17    "Utility cost-savings" means any utility expenses that are
18eliminated or avoided on a long-term basis as a result of
19equipment installed or modified, or services performed by a
20qualified energy service provider. "Utility cost-savings" does
21not include merely shifting personnel costs or similar
22short-term cost-savings.
 
23    Section 15. Authorization.
24    (a) Each governmental unit shall implement cost-effective
25conservation improvements and maintain efficient operation of

 

 

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1its facilities in order to minimize energy consumption and
2related environmental impacts, and reduce operating costs.
3Each governmental unit shall undertake an energy audit and
4implement cost-effective conservation measures. Energy
5performance contracting shall be the preferred method for
6completing energy audits and implementing cost-effective
7conservation measures.
8    (b) Any governmental unit may enter into an energy
9performance contract with a qualified energy service provider
10to produce utility savings or operating and maintenance cost
11savings. Cost-savings measures implemented under such
12contracts shall comply with State or local building codes. Any
13governmental unit may implement other capital improvements in
14conjunction with a performance contract so long as the
15measures that are being implemented to achieve energy and
16operations and maintenance cost-savings are a significant
17portion of an overall project. A governmental unit may enter
18into an energy savings performance contract for a period of
19more than one year only if the governmental unit finds that the
20amount the governmental unit would spend on the energy or
21water conservation measures will not exceed the amount to be
22saved in energy, water, wastewater, and operating costs over
2320 years from the date of installation.
 
24    Section 20. Smart Energy Design Assistance Center (SEDAC).
25    (a) The Smart Energy Design Assistance Center (SEDAC)

 

 

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1based at the University of Illinois at Urbana-Champaign is
2hereby designated to be the lead agency for the development
3and promotion of a program of performance contracts in
4governmental units. SEDAC will coordinate its activities with
5the Capital Development Board. SEDAC, under the direction of
6the Governor, will have the following duties with respect to
7this program:
8        (1) assistance to the Capital Development Board to
9    assemble a list of qualified energy service providers and
10    to negotiate master service contracts and pricing
11    schedules with such qualified energy service providers;
12        (2) development of a standardized energy performance
13    contract process and standard energy performance contract
14    documents, including request for qualifications, request
15    for proposals, investment grade audit contract, energy
16    services agreement, including the form of the project
17    savings guarantee, and project financing agreement; and
18        (3) promotion of the energy performance contract
19    program to all governmental units.
20    (b) SEDAC shall establish guidelines and an approval
21process for awarding energy performance contracts. The
22guidelines adopted under this subsection (b) must require that
23the cost-savings projected by a qualified provider be reviewed
24by a licensed professional engineer who has a minimum of 3
25years of experience in energy calculation and review, is not
26an officer or employee of a qualified provider for the

 

 

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1contract under review, and is not otherwise associated with
2the contract. In conducting the review, the engineer shall
3focus primarily on the proposed improvements from an
4engineering perspective, the methodology and calculations
5related to cost savings, increases in revenue, and, if
6applicable, efficiency or accuracy of metering equipment. An
7engineer who reviews a contract shall maintain the
8confidentiality of any proprietary information the engineer
9acquires while reviewing the contract.
10    (c) SEDAC shall assist governmental units in identifying,
11evaluating, and implementing cost-effective conservation
12projects at their facilities. The assistance shall include:
13(1) notifying governmental units of their responsibilities
14under this Act; (2) apprising governmental units of
15opportunities to develop and finance energy performance
16contracting projects; (3) providing technical and analytical
17support, including procurement energy performance contracting
18services; (4) reviewing verification procedures for energy
19savings; and (5) assisting in the structuring and arranging of
20financing for energy performance contracting projects.
21    (d) SEDAC is authorized to fix, charge, and collect
22reasonable fees, not to exceed 2% of the total cost of the
23energy performance contract project, for any administrative
24support and resources or other services provided by SEDAC, or
25its designee, under this subsection (d) from the governmental
26units that use its technical support services. Governmental

 

 

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1units are authorized to add the costs of these fees to the
2total cost of the energy performance contract.
3    (e) The Governor is encouraged to develop and submit to
4the General Assembly a regular or supplemental budget request
5for the additional funds and staffing required by the Smart
6Energy Design Assistance Center to fulfill the duties required
7under this Section.
 
8    Section 25. Selection of a qualified energy service
9provider. The State process of implementing energy performance
10contracts for governmental units shall be as provided in this
11Section.
12    (a) Regarding requests for qualifications, the Capital
13Development Board is authorized to assemble a list of
14qualified energy service providers, in accordance with the
15provisions of the Illinois Procurement Code. The Capital
16Development Board shall attempt to use objective criteria in
17the selection process. The criteria for evaluation shall
18include substantive factors to assess the capability of the
19qualified energy service company or qualified provider in the
20areas of design, engineering, installation, maintenance, and
21repairs associated with performance contracts. The substantive
22factors shall be as follows: (1) experience in conversions to
23a different energy or fuel source, so long as it is associated
24with a comprehensive energy efficiency retrofit; (2)
25post-installation project monitoring, data collection, and

 

 

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1reporting of savings; (3) overall project experience and
2qualifications; (4) management capability; (5) ability to
3access long-term financing; (6) experience with projects of
4similar size and scope; and (7) other factors determined by
5the governmental unit to be relevant and appropriate and
6relate to the ability to perform the project.
7    (b) Regarding requests for proposals, before entering into
8a performance contract under this Section, a governmental unit
9shall issue a request for proposals from up to 3 qualified
10energy service providers. A governmental unit may thereafter
11award the performance contract to the qualified energy service
12company or qualified provider that best meets the needs of the
13governmental unit, which need not be the lowest cost provided.
14A cost-effective feasibility analysis shall be prepared in
15response to the request for proposals. The feasibility
16analysis included in the response to the request for proposals
17shall serve as the selection document for purposes of
18selecting a qualified energy service provider to engage in
19final contract negotiations. Factors to be included in
20selecting among the selected energy service providers include
21contract terms, comprehensiveness of the proposal,
22comprehensiveness of cost-savings measures, experience,
23quality of technical approach, and overall benefits to the
24governmental unit.
 
25    Section 30. Investment grade audit and contract execution.

 

 

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1    (a) One qualified energy service provider selected as a
2result of the process provided under subsection (b) of Section
325 shall prepare an investment grade energy audit, which, upon
4acceptance, shall be part of the final energy performance
5contract or energy services agreement which shall be executed
6with the governmental unit. The investment grade energy audit
7shall include estimates of the amounts by which utility
8cost-savings and operation and maintenance cost-savings would
9increase and estimates of all costs of such utility
10cost-savings measures or energy-savings measures, including,
11but not limited to, itemized costs of design, engineering,
12equipment, materials, installation, maintenance, repairs, and
13debt service.
14    (b) Notwithstanding the provisions of subsection (a), if
15after preparation of the investment grade energy audit the
16governmental unit decides not to execute an energy services
17agreement, and the costs and benefits described in the energy
18audit are not materially different from those described in the
19feasibility study submitted in response to the request for
20proposals, then the costs incurred in preparing the investment
21grade energy audit shall be paid to the qualified energy
22service provider by the governmental unit. Otherwise, the
23costs of the investment grade energy audit shall be deemed
24part of the costs of the energy performance contract or energy
25services agreement.
 

 

 

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1    Section 35. Installment payment and lease-purchase
2agreements.
3    (a) A governmental unit may use designated funds, bonds,
4or master lease for any energy performance contract, including
5purchases using installment payment contracts or
6lease-purchase agreements, so long as that use is consistent
7with the purpose of the appropriation.
8    (b) A guaranteed energy performance savings contract may
9provide for financing, including tax-exempt financing, by a
10third party. The contract for third party financing may be
11separate from the energy performance contract. A separate
12contract for third party financing must include a provision
13that the third party financier must not be granted rights or
14privileges that exceed the rights and privileges available to
15the guaranteed energy performance savings contractor.
 
16    Section 40. Payment schedule and savings. Each performance
17contract shall provide that all payments between parties,
18except obligations on termination of the contract before its
19expiration, shall be made over time, and the objective of each
20energy performance contract is implementation of cost-savings
21measures and energy and operational cost-savings.
 
22    Section 45. Term of Contracts. An energy performance
23contract, and payments provided thereunder, may extend beyond
24the fiscal year in which the energy performance contract

 

 

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1became effective, subject to appropriation of moneys, if
2required by law, for costs incurred in future fiscal years.
3The energy performance contract may extend for a term not to
4exceed 25 years. The allowable length of the contract may also
5reflect the useful life of the cost-savings measures. Energy
6performance contracts may provide for payments over a period
7of time not to exceed deadlines specified in the energy
8performance contract from the date of the final installation
9of the cost-saving measures.
 
10    Section 50. Allocation of obligations. Subject to
11appropriations as provided in Sections 30 and 35 of this Act,
12each governmental unit shall allocate sufficient moneys for
13each fiscal year to make payment of any amounts payable by the
14governmental unit under performance contracts during that
15fiscal year.
 
16    Section 55. Use of moneys; reconciliation.
17    (a) The governmental unit engaging in the performance
18contract shall retain the savings achieved by entering into
19the performance contract. In no event shall the governmental
20unit utilize those savings to supplant otherwise appropriated
21funds for the governmental unit.
22    (b) Unless otherwise provided by law or ordinance, a
23governmental unit may use funds designated for operating and
24capital expenditures or utilities for any performance

 

 

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1contract, including, without limitation, contracts entered
2into under Section 25 of this Act.
3    (c) The energy performance contract may provide that
4reconciliation of the amounts owed under an energy performance
5contract shall occur in a period beyond one year with final
6reconciliation occurring within the term of the performance
7contract.
8    (d) The energy performance contract shall require the
9qualified provider to provide to the governmental unit an
10annual reconciliation of the guaranteed energy cost-savings.
11If the reconciliation reveals a shortfall in annual energy
12cost savings, the qualified provider is liable for that
13shortfall. If the reconciliation reveals an excess in annual
14energy cost savings, the excess savings may be used to cover
15potential energy cost-savings shortages in subsequent contract
16years.
 
17    Section 60. Monitoring; reports.
18    (a) During the term of each energy performance contract,
19the qualified energy service company or qualified provider
20shall monitor the reductions in energy consumption and
21cost-savings attributable to the cost-savings measures
22installed under the performance contract, and shall, no less
23than annually, prepare and provide a report to the
24governmental unit documenting the performance of the
25cost-savings measures to the governmental unit.

 

 

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1    (b) The qualified provider or qualified energy service
2company and governmental unit may agree to make modifications
3in calculating savings based on any of the following
4occurrences:
5        (1) subsequent material change to the baseline energy
6    consumption identified at the beginning of the performance
7    contract;
8        (2) changes in utility rates;
9        (3) changes in the number of days in the utility
10    billing cycle;
11        (4) changes in the total square footage of the
12    building;
13        (5) changes in the operational schedule of the
14    facility;
15        (6) changes in facility temperature;
16        (7) material change in the weather;
17        (8) material changes in the amount of equipment or
18    lighting used at the facility; or
19        (9) any other change which reasonably would be
20    expected to modify energy use or energy costs.
21    (c) For all projects carried out under this Act, the
22governmental unit shall report the name of the project, the
23project host, the investment on the project, and the expected
24energy savings to the Illinois Commerce Commission, and shall
25file with the Illinois Commerce Commission a copy of all
26reconciliation reports delivered under this subsection (c).

 

 

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1The Illinois Commerce Commission may report energy savings
2from these projects to the federal Energy Information
3Administration under the Energy Policy Act of 1992 reporting
4standards.
 
5    Section 65. Contingency provisions. Performance contracts
6shall include contingency provisions in the event that actual
7savings do not meet predicted savings
 
8    Section 70. Use of savings from performance contracts.
9Governmental units may direct savings realized under the
10performance contract to contract payment and other expenses as
11they deem necessary. Governmental units are encouraged to
12reinvest savings whenever practical into cost-savings
13measures, so long as the governmental unit is satisfying all
14obligations under the performance contract.
 
15    Section 75. Act takes precedence; repeal of prior
16conflicting statutes. In case of any conflict between the
17provisions of this Act and any other law, the provisions of
18this Act shall prevail and control. The provisions of any
19statute enacted prior to this Act which are inconsistent with
20this Act are hereby repealed. The Attorney General shall
21consult with the Smart Energy Design Assistance Center (SEDAC)
22in construing this Section.
 

 

 

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1    Section 100. The Illinois Procurement Code is amended by
2changing Sections 20-60 and 40-25 as follows:
 
3    (30 ILCS 500/20-60)
4    Sec. 20-60. Duration of contracts.
5    (a) Maximum duration. A contract may be entered into for
6any period of time deemed to be in the best interests of the
7State but not exceeding 10 years inclusive, beginning January
81, 2010, of proposed contract renewals. Third parties may
9lease State-owned dark fiber networks for any period of time
10deemed to be in the best interest of the State, but not
11exceeding 20 years. The length of a lease for real property or
12capital improvements shall be in accordance with the
13provisions of Section 40-25. The length of energy conservation
14program contracts or energy savings contracts or leases shall
15be in accordance with the provisions of Section 45 of the
16Energy Performance Contracting Act 25-45. A contract for bond
17or mortgage insurance awarded by the Illinois Housing
18Development Authority, however, may be entered into for any
19period of time less than or equal to the maximum period of time
20that the subject bond or mortgage may remain outstanding.
21    (b) Subject to appropriation. All contracts made or
22entered into shall recite that they are subject to termination
23and cancellation in any year for which the General Assembly
24fails to make an appropriation to make payments under the
25terms of the contract.

 

 

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1    (c) The chief procurement officer shall file a proposed
2extension or renewal of a contract with the Procurement Policy
3Board prior to entering into any extension or renewal if the
4cost associated with the extension or renewal exceeds
5$249,999. The Procurement Policy Board may object to the
6proposed extension or renewal within 30 calendar days and
7require a hearing before the Board prior to entering into the
8extension or renewal. If the Procurement Policy Board does not
9object within 30 calendar days or takes affirmative action to
10recommend the extension or renewal, the chief procurement
11officer may enter into the extension or renewal of a contract.
12This subsection does not apply to any emergency procurement,
13any procurement under Article 40, or any procurement exempted
14by Section 1-10(b) of this Code. If any State agency contract
15is paid for in whole or in part with federal-aid funds, grants,
16or loans and the provisions of this subsection would result in
17the loss of those federal-aid funds, grants, or loans, then
18the contract is exempt from the provisions of this subsection
19in order to remain eligible for those federal-aid funds,
20grants, or loans, and the State agency shall file notice of
21this exemption with the Procurement Policy Board prior to
22entering into the proposed extension or renewal. Nothing in
23this subsection permits a chief procurement officer to enter
24into an extension or renewal in violation of subsection (a).
25By August 1 each year, the Procurement Policy Board shall file
26a report with the General Assembly identifying for the

 

 

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1previous fiscal year (i) the proposed extensions or renewals
2that were filed with the Board and whether the Board objected
3and (ii) the contracts exempt from this subsection.
4    (d) Notwithstanding the provisions of subsection (a) of
5this Section, the Department of Innovation and Technology may
6enter into leases for dark fiber networks for any period of
7time deemed to be in the best interests of the State but not
8exceeding 20 years inclusive. The Department of Innovation and
9Technology may lease dark fiber networks from third parties
10only for the primary purpose of providing services (i) to the
11offices of Governor, Lieutenant Governor, Attorney General,
12Secretary of State, Comptroller, or Treasurer and State
13agencies, as defined under Section 5-15 of the Civil
14Administrative Code of Illinois or (ii) for anchor
15institutions, as defined in Section 7 of the Illinois Century
16Network Act. Dark fiber network lease contracts shall be
17subject to all other provisions of this Code and any
18applicable rules or requirements, including, but not limited
19to, publication of lease solicitations, use of standard State
20contracting terms and conditions, and approval of vendor
21certifications and financial disclosures.
22    (e) As used in this Section, "dark fiber network" means a
23network of fiber optic cables laid but currently unused by a
24third party that the third party is leasing for use as network
25infrastructure.
26(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;

 

 

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1101-81, eff. 7-12-19.)
 
2    (30 ILCS 500/40-25)
3    Sec. 40-25. Length of leases.
4    (a) Maximum term. Except as otherwise provided under
5subsection (a-5), leases shall be for a term not to exceed 10
6years inclusive, beginning January, 1, 2010, of proposed
7contract renewals and shall include a termination option in
8favor of the State after 5 years. The length of energy
9conservation program contracts or energy savings contracts or
10leases shall be in accordance with the provisions of Section
1145 of the Energy Performance Contracting Act 25-45.
12    (a-5) Extended term. A lease for real property owned by
13the University of Illinois to be used by the University of
14Illinois at Chicago for an ambulatory surgical center, which
15would include both clinical services and retail space, may
16exceed 10 years in length where: (i) the lease requires the
17lessor to make capital improvements in excess of $100,000; and
18(ii) the Board of Trustees of the University of Illinois
19determines a term of more than 10 years is necessary and is in
20the best interest of the University. A lease under this
21subsection (a-5) may not exceed 30 years in length.
22    (b) Renewal. Leases may include a renewal option. An
23option to renew may be exercised only when a State purchasing
24officer determines in writing that renewal is in the best
25interest of the State and notice of the exercise of the option

 

 

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1is published in the appropriate volume of the Procurement
2Bulletin at least 30 calendar days prior to the exercise of the
3option.
4    (c) Subject to appropriation. All leases shall recite that
5they are subject to termination and cancellation in any year
6for which the General Assembly fails to make an appropriation
7to make payments under the terms of the lease.
8    (d) Holdover. Beginning January 1, 2010, no lease may
9continue on a month-to-month or other holdover basis for a
10total of more than 6 months. Beginning July 1, 2010, the
11Comptroller shall withhold payment of leases beyond this
12holdover period.
13(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
14101-426, eff. 1-1-20.)
 
15    (30 ILCS 500/25-45 rep.)
16    Section 105. The Illinois Procurement Code is amended by
17repealing Section 25-45.
 
18    Section 995. No acceleration or delay. Where this Act
19makes changes in a statute that is represented in this Act by
20text that is not yet or no longer in effect (for example, a
21Section represented by multiple versions), the use of that
22text does not accelerate or delay the taking effect of (i) the
23changes made by this Act or (ii) provisions derived from any
24other Public Act.
 

 

 

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1    Section 999. Effective date. This Act takes effect upon
2becoming law.