State of Illinois
2019 and 2020


Introduced 2/7/2019, by Sen. Chapin Rose


New Act

    Creates the State Power Purchase Agreement Act. Provides that the Smart Energy Design Assistance Center (SEDAC) is designated as the lead agency for the development and promotion of a program to facilitate the deployment of renewable energy power purchase agreements with State agencies. Provides for the selection of qualified renewable energy power purchase agreement project developers. Allows State agencies to enter into renewable energy power purchase agreements with renewable energy developers for the construction and use of solar or wind energy, or both, on State property controlled by the State agency or on which daily operations of the State agency occur. Provides further requirements concerning the awarding of contracts to developers and purchase of power under power purchase agreements. Specifies the duration of power purchase agreement contracts. Provides for third-party financing of renewable energy power purchase agreement projects. Provides for the use of moneys saved by State agencies by entering into renewable energy power purchase agreements. Provides for reporting to the Illinois Commerce Commission. Defines terms. Effective immediately.

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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 1. Short title. This Act may be cited as the State
5Power Purchase Agreement Act.
6    Section 5. Purpose. The purpose of this Act is to obtain
7long-term energy and cost-savings for State agencies by
8facilitating engagement in Power Purchase Agreements in
9connection with buildings, facilities, and lands owned,
10operated, or under the supervision and control of State
11agencies. These agreements will improve and protect the health,
12safety, security, and welfare of the people of this State by
13promoting renewable energy deployment, reducing air emissions,
14and reducing costs.
15    Section 10. Definitions. As used in this Act:
16    "Renewable energy infrastructure" means solar and wind
17energy infrastructure constructed on State property under the
18provisions of a power purchase project agreement.
19    "Renewable energy power purchase agreement" is a long-term
20contract between a party that generates renewable electricity
21(typically an independent power developer) and a State agency
22that purchases electricity.



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1    "Renewable energy power purchase agreement project
2developer" or "developer" means a person or organization with a
3record of successful deployment and operation of renewable
4energy power purchase agreement projects.
5    "Renewable energy project" means any system comprised of
6equipment, devices, or fuels that enable the use or storage of
7renewable energy sources such as wind, solar, geothermal, or
9    "State agency" has the meaning provided in Section 1-7 of
10the Illinois State Auditing Act.
11    Section 15. Smart Energy Design Assistance Center (SEDAC).
12    (a) The Smart Energy Design Assistance Center (SEDAC) based
13at the University of Illinois at Urbana-Champaign is hereby
14designated to be the lead agency for the development and
15promotion of a program to facilitate the deployment of
16renewable energy power purchase agreements with State
17agencies. SEDAC will coordinate its activities with the
18Department of Central Management Services and other relevant
19State agencies, under the direction of the Governor, and will
20have the following duties with respect to this program:
21        (1) assistance to the Department of Central Management
22    Services to assemble a list of qualified renewable energy
23    project developers and to negotiate with such qualified
24    project developers master service contracts and pricing
25    schedules;



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1        (2) development of a standardized power purchase
2    agreement contract process and standard contract
3    documents, including requests for qualifications, requests
4    for proposals, and reporting metrics and content on the
5    operations and status of the renewable energy power
6    purchase project agreement; and
7        (3) promotion of the renewable energy power purchase
8    agreements to all State agencies.
9    (b) SEDAC shall assist State agencies in identifying,
10evaluating, and implementing cost-effective renewable energy
11power purchase agreements at their facilities. The assistance
12shall include: (1) notifying State agencies of this Act; (2)
13apprising State agencies of opportunities to implement
14renewable energy power purchase agreements; (3) providing
15technical and analytical support, including assessment and
16identification of site specific renewable energy
17opportunities; (4) reviewing and verifying estimates for
18energy savings and emissions reductions; and (5) assisting in
19the structuring and arranging of renewable energy power
20purchase agreements and projects.
21    (c) SEDAC is authorized to fix, charge, and collect
22reasonable fees, not to exceed 2% of the energy cost savings of
23the renewable energy power purchase agreement for any
24administrative or technical support provided by SEDAC, or its
25designee, under this subsection (c) from the State agency that
26uses its technical support services. State agencies are



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1authorized to add the costs of these fees to the total cost of
2the renewable energy power purchase agreement.
3    (d) The Governor is encouraged to develop and submit to the
4General Assembly a regular or supplemental budget request for
5the additional funds and staffing required by the Smart Energy
6Design Assistance Center to fulfill the duties required under
7this Section.
8    Section 20. Selection of qualified renewable energy power
9purchase agreement project developers. The State process of
10implementing renewable energy power purchase agreements shall
11be as provided in this Section.
12    (a) Regarding requests for qualifications, the Department
13Central Management Services is authorized to assemble a list of
14qualified renewable energy power purchase agreements project
15developers, in accordance with the provisions of the Illinois
16Procurement Code. The Department of Central Management
17Services shall attempt to use objective criteria in the
18selection process. The criteria for evaluation shall include
19substantive factors to assess the capability of the qualified
20renewable energy power purchase agreement project developers
21in the areas of design, engineering, installation,
22maintenance, and repairs associated with renewable energy
23systems. The substantive factors shall be as follows: (1)
24experience in the design, implementation, and maintenance of
25renewable energy systems; (2) post-installation project



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



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2    (a) Subject to the provisions of Section 20, a State agency
3may enter into a renewable energy power purchase agreement with
4renewable energy developers for the construction and use of
5solar or wind energy, or both, on State property controlled by
6the State agency or on which daily operations of the State
7agency occur.
8    (b) State agencies choosing to enter into a renewable
9energy power purchase agreement under subsection (a) shall
10enter into such agreement with a developer chosen through a
11process in accordance with Section 20 and otherwise meeting the
12requirements of the Illinois Procurement Code regarding
13requests for proposals. A developer bidding for a contract
14under this Section shall include a list of potential
15third-party investors that would be ready and willing to invest
16in the project upon awarding of the contract. A bid made
17without a list of potential investors shall not be accepted and
18no contract shall be awarded.
19    (c) The developer awarded a contract under subsection (b)
20shall be provided land and facility access to the property used
21by the State agency for the purpose of constructing and
22managing a renewable energy infrastructure. The State agency,
23based upon the renewable energy power purchase agreement, shall
24then be able to purchase the power produced by the renewable
25energy infrastructure from the developer at a lower rate than
26it would otherwise pay for power. The developer shall be



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1responsible for the construction and management of the
2renewable energy infrastructure on property used by the State
4    (d) Upon the awarding of a contract under subsection (b),
5and in addition to the provisions of subsection (c), the
6potential investors listed in the developer's bid shall be
7contacted for the purposes of investing capital toward the
8construction and operation of a renewable energy
9infrastructure on property used by the State agency as provided
10under the renewable energy power purchase agreement. The
11investor shall be compensated through a subsequent contract
12entered into between the investor and the State agency. Failure
13of the developer to secure an investor provided for in its bid
14may, at the discretion of the State agency, render the contract
15between the developer and the State agency void.
16    (e) No State agency that has entered into a renewable
17energy power purchase agreement under this Section shall
18purchase more power than is that State agency's normal
19consumption for a given yearly period, nor shall that State
20agency contract for the construction of renewable energy
21infrastructure estimated to produce more power than is that
22State agency's normal consumption for a given yearly period.
23    (f) Each State agency that has entered into a renewable
24energy power purchase agreement under this Section shall,
25within 2 years after entering into the agreement, issue a
26report to the General Assembly on the operations and status of



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1the renewable energy power purchase agreement.
2    Section 30. Duration of contracts; financing. A renewable
3energy power purchase agreement, and payments provided
4thereunder, shall extend for periods of between 5 and 25 years.
5The allowable length of the contract may also reflect the
6useful life of renewable energy equipment and facilities. A
7renewable energy power purchase agreement may provide for
8financing, including tax incentives by a third party. The
9contract for third-party financing may be separate from the
10renewable energy power purchase agreement. A separate contract
11for third-party financing must include a provision that the
12third-party financier must not be granted rights or privileges
13that exceed the rights and privileges available to the
14renewable energy power purchase agreement project developer.
15    Section 35. Use of moneys. The State agency engaging in the
16renewable energy power purchase agreement shall retain the
17savings achieved by entering into the renewable energy power
18purchase agreement contract. State agencies are encouraged to
19reinvest savings wherever practical into additional cost
20savings measures. Unless otherwise provided by law, a State
21agency shall use funds designated for operating and capital
22expenditures or utilities for any renewable energy power
23purchase agreement.



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1    Section 40. Reports. For all projects carried out under
2this Act, the State agency shall report the name of the
3project, the project host, the investment on the project, the
4energy savings, the energy cost savings, and the greenhouse gas
5emission reductions to the Illinois Commerce Commission. The
6Illinois Commerce Commission may report energy savings and
7greenhouse gas emission reductions to the federal Energy
8Information Administration under the Energy Policy Act of 1992
9reporting standards.
10    Section 99. Effective date. This Act takes effect upon
11becoming law.