Public Act 90-0486 of the 90th General Assembly

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Public Act 90-0486

SB529 Enrolled                                 LRB9002425THcw

    AN ACT relating to higher education.

    Be it enacted by the People of  the  State  of  Illinois,
represented in the General Assembly:

    Section  1.   Short  title.  This Act may be cited as the
Public University Energy Conservation Act.

    Section 5.  Definitions.  In this Act words  and  phrases
have  the  meanings  set  forth  in  the  following  Sections
preceding Section 10.

    Section  5.5.   Public  university.   "Public university"
means  any  of  the  the  following  institutions  of  higher
learning:  the  University  of  Illinois,  Southern  Illinois
University, Northern Illinois  University,  Eastern  Illinois
University,   Western   Illinois   University,   Northeastern
Illinois  University,  Chicago  State  University,  Governors
State  University,  or  Illinois  State University, acting in
each case through its board of trustees or through a designee
of that board.

    Section  5-10.   Energy  conservation  measure.   "Energy
conservation  measure"   means   any   improvement,   repair,
alteration,  or  betterment of any building or facility owned
or operated by a public university or any equipment, fixture,
or furnishing to be added to or used in any such building  or
facility  that  is  designed  to reduce energy consumption or
operating costs, and may include, without limitation, one  or
more of the following:
         (1)  Insulation of the building structure or systems
    within the building.
         (2)  Storm    windows    or   doors,   caulking   or
    weatherstripping,  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  facility,  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.

    Section   5-15.    Guaranteed  energy  savings  contract.
"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.
    Section  5-20.  Qualified provider.  "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.   A
qualified provider to whom the contract is awarded shall give
a  sufficient  bond to the public university for its faithful
performance.

    Section  5-25.   Request  for  proposals.   "Request  for
proposals" means a negotiated procurement.  The  request  for
proposals  shall  be  announced by the public university that
will administer the  program  through  at  least  one  public
notice,  at  least  10  days  before  the  request date, in a
newspaper published  in  the  county  in  which  that  public
university  is  located,  or  if no newspaper is published in
that county, in a newspaper of  general  circulation  in  the
area  of  that  county,   requesting innovative solutions and
proposals  for  energy  conservation   measures.    Proposals
submitted  shall  be sealed.  The request for proposals shall
include all of the following:
         (1)  The name and address of the  public  university
    that will administer the program.
         (2)  The name, address, title, and phone number of a
    contact person.
         (3)  Notice indicating that the public university is
    requesting   qualified   providers   to   propose  energy
    conservation measures through a guaranteed energy savings
    contract.
         (4)  The date, time, and place where proposals  must
    be received.
         (5)  The   evaluation  criteria  for  assessing  the
    proposals.
         (6)  Any other stipulations and  clarifications  the
    public university may require.

    Section  10.   Evaluation  of  proposal.  Before entering
into a guaranteed energy savings contract under Section 15, a
public university shall submit a request for proposals.   The
public  university  shall evaluate any sealed proposal from a
qualified  provider.   The  evaluation  shall   analyze   the
estimates  of  all  costs  of installations, modifications or
remodeling,  including,  without  limitation,  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  technical  assistance  is  not
available  by a licensed architect or registered professional
engineer on the staff of  the  public  university,  then  the
evaluation  of  the  proposal  shall  be done by a registered
professional engineer or architect, who is  retained  by  the
public   university.    The   public  university  may  pay  a
reasonable fee for evaluation of the proposal or include  the
fee as part of the payments made under Section 20.

    Section 15.  Award of guaranteed energy savings contract.
Sealed  proposals  must  be opened by the public university's
board of trustees or a designee of that  board  at  a  public
opening  at  which  the  contents  of  the  proposals must be
announced.    Each  person  or  entity  submitting  a  sealed
proposal must receive at least 10 days notice of the time and
place of the opening.  The public university shall select the
qualified provider that best meets the needs of the district.
The public university shall  provide  public  notice  of  the
meeting  at  which  it  proposes to award a guaranteed energy
savings contract and of the  names  of  the  parties  to  the
proposed  contract  and  the  purpose  of  the contract.  The
public notice shall be made at least 10  days  prior  to  the
meeting.   After evaluating the proposals under Section 10, a
public university may enter into a guaranteed energy  savings
contract  with  a  qualified  provider  if  it 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 10 year period  from  the  date  of  installation,  if  the
recommendations in the proposal are followed.

    Section  20.   Guarantee.   The guaranteed energy savings
contract shall include a written guarantee of  the  qualified
provider  that either the energy or operational cost savings,
or both, will meet or exceed within 10 years the costs of the
energy conservation measures.  The qualified  provider  shall
reimburse   the   public  university  for  any  shortfall  of
guaranteed energy  savings  projected  in  the  contract.   A
qualified  provider  shall  provide  a sufficient bond to the
public university  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 10  years  from
the date of final installation of the measures.

    Section  25.   Installment  payment;  lease  purchase.  A
public  university  or  2  or  more  public  universities  in
combination may enter into an installment payment contract or
lease purchase agreement with a qualified  provider  for  the
purchase  and  installation  of energy conservation measures.
Each public university may issue certificates evidencing  the
indebtedness   incurred   pursuant   to   the   contracts  or
agreements.  Any such contract or agreement  shall  be  valid
whether or not an appropriation with respect thereto is first
included  in  any annual or additional or supplemental budget
proposal, request, or recommendation  submitted  by  or  made
with  respect  to  a public university under Section 8 of the
Board of Higher Education Act or  as  otherwise  provided  by
law.   Each  contract  or  agreement entered into by a public
university pursuant to this Section shall  be  authorized  by
resolution of the board of trustees of that university.

    Section 30.  Term; budget and appropriations.  Guaranteed
energy savings contracts may extend beyond the fiscal year in
which  they  become  effective.   The public university shall
include in its annual budget request and the Board of  Higher
Education   shall   recommend   an   appropriation  for  each
subsequent  fiscal  year  that  is  sufficient  to  pay   and
discharge any amounts payable under guaranteed energy savings
contracts during that fiscal year.

    Section  35.   Operational  and energy cost savings.  The
public university shall document the operational  and  energy
cost  savings  specified  in  the  guaranteed  energy savings
contract and designate and reserve 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  qualified provider shall pay the difference as
provided in Section 20.

    Sec. 40.  Available funds.  A public university  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.  A public university  that  enters  into  such  a
contract  or  agreement  may  covenant  in  such  contract or
agreement that payments made thereunder shall be payable from
the first funds legally available in each fiscal year.

    Section 45. Funding.  No grants or other funds or amounts
appropriated to a public university for any purpose shall  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.

    Section  70.  The Public Community College Act is amended
by changing Section 2-16.02 as follows:

    (110 ILCS 805/2-16.02) (from Ch. 122, par. 102-16.02)
    Sec.  2-16.02.  Any  community  college   district   that
maintains  a  community college recognized by the State Board
shall receive,  when  eligible,  grants  enumerated  in  this
Section.   Funded  semester credit hours or other measures as
specified by the State Board  shall  be  used  to  distribute
grants to community colleges. Except for equalization grants,
retirees   health   insurance  grants,  grants  to  districts
established pursuant to Section 6-6.1, and grants for special
initiatives, all grants specified in this  Section  shall  be
based  on  funded  semester  credit  hours.   Funded semester
credit hours shall be defined, for purposes of this  Section,
as the greater of (1) the number of semester credit hours, or
equivalent,   in   all  funded  instructional  categories  of
students who have been certified as being  in  attendance  at
midterm  during  the respective terms of the base fiscal year
or (2) the average of semester credit hours,  or  equivalent,
in  all  funded instructional categories of students who have
been certified as being in attendance at midterm  during  the
respective  terms  of  the  base  fiscal year and the 2 prior
fiscal years.  For purposes of  this  Section,  "base  fiscal
year"  means the fiscal year 2 years prior to the fiscal year
for which the grants are appropriated.  Such  students  shall
have  been residents of Illinois and shall have been enrolled
in courses that are part of instructional program  categories
approved by the State Board and that are applicable toward an
associate  degree  or  certificate.  Courses are not eligible
for reimbursement where  the  district  receives  federal  or
State  financing  or both, except financing through the State
Board, for  50%  or  more  of  the  program  costs  with  the
exception  of courses offered by contract with the Department
of   Corrections   in   correctional   institutions.    After
distributing a grant of up to one-tenth of 1%  of  the  total
available  credit  hour  grant  funding to each district with
less than 75,000 funded semester credit  hours  exclusive  of
Department  of Corrections credit hours, the remaining Credit
hour grants shall be paid based on rates per funded  semester
credit  hour  or equivalent calculated by the State Board for
funded instructional categories using  cost  of  instruction,
enrollment,  inflation,  and  other  relevant  factors. Small
district grants, in an amount to be determined by  the  State
Board,  shall  be made to each district with less than 75,000
funded semester credit  hours,  exclusive  of  Department  of
Corrections credit hours.
    Grants  for  Equalization  grants shall be distributed to
each  district  that  falls  below  a   statewide   threshold
calculated  by the State Board by determining a local revenue
factor for each district by:  (A) adding (1) each  district's
the  Corporate Personal Property Replacement Fund allocations
from the base fiscal year or the average of the  base  fiscal
year  and  prior  year,  whichever  is  less,  divided by the
applicable statewide average tax rate to (2)  the  district's
most  recently audited year's equalized assessed valuation or
the average of the most recently audited year and prior year,
whichever is less, (B) then dividing by the district's number
of audited full-time equivalent  resident  students  for  the
base fiscal year or the average for the base  fiscal year and
the  2 prior fiscal years, whichever is greater, and (C) then
multiplying by the applicable  statewide  average  tax  rate.
The  State Board shall calculate a statewide weighted average
threshold by applying use the same methodology to the  totals
of all districts' Corporate Personal Property Tax Replacement
Fund  allocations, equalized assessed valuations, and audited
full-time   equivalent   district   resident   students   and
multiplying by the  applicable  statewide  average  tax  rate
calculate  a  local  revenue  factor  for  each district. The
difference between the statewide weighted  average  threshold
and  the  local  revenue  factor, multiplied by the number of
full-time equivalent resident students, shall  determine  the
amount of equalization funding that each district is eligible
to  receive.  A percentage factor, as determined by the State
Board, may be applied to the statewide threshold as a  method
for  allocating equalization funding.  A minimum equalization
grant of an amount per district as determined  by  the  State
Board shall be established for any community college district
which  qualifies  for  an  equalization  grant based upon the
preceding criteria, but becomes ineligible  for  equalization
funding,  or  would  have  received  a grant of less than the
minimum  equalization  grant,  due  to  threshold  prorations
applied to reduce equalization funding.  As of July 1,  1997,
community  college districts must maintain a minimum required
in-district  tuition  rate  per  semester  credit   hour   as
determined  by  the State Board. For each fiscal year between
July 1, 1997 and June 30, 2001,  districts  not  meeting  the
minimum  required rate will be subject to a percent reduction
of equalization funding as determined by the State Board.  As
of July 1, 2001, districts must  meet  the  required  minimum
in-district tuition rate to qualify for equalization funding.
    A   special   populations  grant  of  a  base  amount  as
determined by the State Board $20,000 per  community  college
shall be distributed to each community college district., and
Any  remaining  appropriated  funds  for  special populations
purposes shall be distributed based on factors as  determined
by  the  State  Board  programs  with the exception of moneys
appropriated  as  grants  for  unique   special   populations
initiatives  created  by the State Board shall be distributed
proportionately to each community  college  district  on  the
basis  of  each  district's  share  of the State total funded
semester     credit     hours,     or     equivalent,      in
remedial/developmental   and   adult   basic  education/adult
secondary  education   courses.    Each   community   college
district's  expenditures  of funds from those grants shall be
limited to courses  and  services  related  to  programs  for
educationally   disadvantaged   and   minority   students  as
specified by the State Board.
    A workforce preparation grant of a base grant  amount  as
determined by the State Board $35,000 shall be distributed to
each   community   college   district.,   and  Any  remaining
appropriated funds for workforce  preparation  programs  with
the  exception  of  monies appropriated as grants for special
workforce preparation initiatives created by the State  Board
shall  be  distributed  based on factors as determined by the
State  Board  proportionately  to  each   community   college
district  on  the basis of each district's share of the State
total  funded  semester  credit  hours,  or  equivalent,   in
business  occupational,  technical  occupational,  and health
occupational  courses.   Each  community  college  district's
expenditures of funds from those grants shall be  limited  to
workforce preparation activities and services as specified by
the State Board.
    An   advanced   technology   equipment   grant  shall  be
distributed  proportionately  to   each   community   college
district  based  on  each district's share of the State total
funded semester credit  hours,  or  equivalent,  in  business
occupational, technical occupational, and health occupational
courses  or  other measures as determined by the State Board.
Each community college district's expenditures of funds  from
those grants shall be limited to procurement of equipment for
curricula  impacted by technological advances as specified by
the State Board.
    A retirees health insurance grant  shall  be  distributed
proportionately  to each community college district or entity
created pursuant to Section 3-55  based  on  each  district's
share  of  the  total number of community college retirees in
the State on July 1 of the fiscal year prior  to  the  fiscal
year  for which the grants are appropriated, as determined by
the  State  Board.    Each   community   college   district's
Expenditures  of  funds from those grants shall be limited to
payment of costs associated with the provision  of  retirees'
health insurance.
    A deferred maintenance grant shall be distributed to each
community  college district based upon criteria as determined
by  the  State  Board.  Each  community  college   district's
expenditures  of  funds from those grants shall be limited to
deferred maintenance activities specified by the State Board.
    A grant shall be provided to  the  Illinois  Occupational
Information   Coordinating   Committee  for  the  purpose  of
providing the State Board with labor  market  information  by
updating  the  Occupational  Information  System and HORIZONS
Career Information  System  and  by  providing  labor  market
information  and  technical  assistance,  that  grant  to  be
provided  in  its  entirety  during  the first quarter of the
fiscal year.
    A grant shall be provided to Community  College  District
#540,  that  district having been formed under the provisions
of Section 6-6.1, for the purpose of providing funds for  the
district  to  meet operating expenses.  The State Board shall
certify, prepare, and submit to the State Comptroller  during
August  of the fiscal year a voucher setting forth a one-time
payment of any Education Assistance Fund  appropriation,  and
during  November,  February,  and  May  of  the fiscal year a
voucher setting forth equal payments of General Revenue  Fund
appropriations.   The Comptroller shall cause a warrant to be
drawn for  the  amount  due,  payable  to  Community  College
District  #540,  within 15 days following the receipt of each
such voucher.
    The State  Board  shall  distribute  such  other  special
grants  as  may  be authorized or appropriated by the General
Assembly.
    Each community college district entitled to State  grants
under  this Section must submit a report of its enrollment to
the State Board not later than 30 days following the  end  of
each semester, quarter, or term in a format prescribed by the
State  Board.   These  semester  credit hours, or equivalent,
shall be certified by each district on forms provided by  the
State  Board.   Each  district's  certified  semester  credit
hours,  or  equivalent,  are  subject  to  audit  pursuant to
Section 3-22.1.
    The State Board shall certify, prepare, and submit to the
State Comptroller during August, November, February, and  May
of each fiscal year vouchers setting forth an amount equal to
25%  of  the  districts'  total  grants approved by the State
Board for credit hour grants, small district grants,  special
populations    grants,    workforce    preparation    grants,
equalization  grants,  advanced  technology equipment grants,
deferred maintenance grants, and  retirees  health  insurance
grants. The State Board shall prepare and submit to the State
Comptroller  vouchers  for special initiatives grant payments
as  set  forth  in  the  contracts   executed   pursuant   to
appropriations   received   for   special   initiatives.  The
Comptroller shall cause his warrants  to  be  drawn  for  the
respective  amounts  due,  payable  to each community college
district, within  15  days  following  the  receipt  of  such
vouchers.  If the amount appropriated for grants is different
from  the amount provided for such grants under this Act, the
grants  shall  be  proportionately   reduced   or   increased
accordingly.
    For  the  purposes  of  this  Section, "resident student"
means a student in a community college district who maintains
residency  in  that  district  or   meets   other   residency
definitions  established  by  the  State  Board,  and who was
enrolled either in one of the approved instructional  program
categories  in that district, or in another community college
district to which the resident's district is  paying  tuition
under  Section  6-2 or with which the resident's district has
entered into a cooperative agreement in lieu of such tuition.
    For  the  purposes  of   this   Section,   a   "full-time
equivalent" student is equal to 30 semester credit hours.
    The Illinois Community College Board Contracts and Grants
Fund  is  hereby  created  in  the  State Treasury.  Items of
income  to  this  fund  shall  include  any  grants,  awards,
endowments, or like proceeds, and  where  appropriate,  other
funds  made  available  through  contracts with governmental,
public,  and  private  agencies  or  persons.   The   General
Assembly  shall from time to time make appropriations payable
from such fund for the support, improvement, and expenses  of
the State Board and Illinois community college districts.
(Source:  P.A.  88-103; 88-553; 89-141, eff. 7-14-95; 89-281,
eff. 8-10-95; 89-473, eff. 6-18-96; 89-626, eff. 8-9-96.)

    Section 75.  The Higher Education Student Assistance  Act
is amended by adding Section 38 as follows:

    (110 ILCS 947/38 new)
    Sec.  38.  Monetary  award  program  accountability.  The
Illinois Student Assistance Commission is directed to  assess
the   educational   persistence  of  monetary  award  program
recipients.  An assessment under this Section  shall  include
an  analysis  of  such  factors  as undergraduate educational
goals, chosen field of study, retention rates,  and  expected
time to complete a degree.  The assessment also shall include
an analysis of the academic success of monetary award program
recipients  through  a  review of measures that are typically
associated  with  academic  success,  such  as  grade   point
average,  satisfactory  academic  progress,  and credit hours
earned.  Each analysis should take into consideration student
class  level,  dependency  types,  and  the  type  of  higher
education institution at which each  monetary  award  program
recipient  is  enrolled.   The  Commission  shall  report its
findings to the General Assembly  and  the  Board  of  Higher
Education  by  February  1,  1999  and at least every 2 years
thereafter.

    Section 99.  Effective date.  This Act takes effect  July
1, 1997.

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