SB3472 101ST GENERAL ASSEMBLY

LRB101 20028 NHT 69558 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3472

Introduced 2/14/2020, by Sen. Laura Ellman

SYNOPSIS AS INTRODUCED:

105 ILCS 5/3-14.20	from Ch. 122, par. 3-14.20
105 ILCS 5/19b-1.1	from Ch. 122, par. 19b-1.1
105 ILCS 5/19b-1.2	from Ch. 122, par. 19b-1.2
105 ILCS 5/19b-1.3	from Ch. 122, par. 19b-1.3
105 ILCS 5/19b-1.4	from Ch. 122, par. 19b-1.4
105 ILCS 5/19b-1.5 new
105 ILCS 5/19b-2	from Ch. 122, par. 19b-2
105 ILCS 5/19b-2.1 new
105 ILCS 5/19b-3	from Ch. 122, par. 19b-3
105 ILCS 5/19b-4	from Ch. 122, par. 19b-4
105 ILCS 5/19b-5	from Ch. 122, par. 19b-5
105 ILCS 5/19b-7	from Ch. 122, par. 19b-7
105 ILCS 5/19b-8	from Ch. 122, par. 19b-8
105 ILCS 5/19b-90 new
105 ILCS 5/19b-95 new

Amends the School Code. Provides that a duty of the regional superintendent of schools is to inspect the energy conservation measures of schools under the Code. In the Article concerning school energy conservation and savings measures, makes changes concerning definitions, the evaluation and submission of guaranteed energy savings contract proposals, performance reviews, the award of a contract, the written guarantee, installment payment contracts and lease purchase agreements, cost savings, and available funds. Prohibits guaranteed energy savings contracts from being entered into on or after January 1, 2021. Repeals the Article 20 years after the effective date of the amendatory Act.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

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

Section 5. The School Code is amended by changing Sections 3-14.20, 19b-1.1, 19b-1.2, 19b-1.3, 19b-1.4, 19b-2, 19b-3, 19b-4, 19b-5, 19b-7, and 19b-8 and by adding Sections 19b-1.5, 19b-2.1, 19b-90, and 19b-95 as follows:

(105 ILCS 5/3-14.20) (from Ch. 122, par. 3-14.20)

Sec. 3-14.20. Building plans and specifications. To inspect the building plans and specifications, including but not limited to plans and specifications for the heating, ventilating, lighting, seating, water supply, toilets, energy conservation measures, and safety against fire of public school rooms and buildings submitted to the regional superintendent of schools him by school boards, and to approve all those which comply substantially with the building code authorized in Section 2-3.12.

If a municipality or, in the case of an unincorporated area, a county or, if applicable, a fire protection district wishes to be notified of plans and specifications received by a regional office of education for any future construction or alteration of a public school facility located within that entity's jurisdiction, then the entity must register this wish with the regional superintendent of schools. Within 10 days after the regional superintendent of schools receives the plans and specifications from a school board and prior to the bidding process, he or she shall notify, in writing, the registered municipality and, if applicable, the registered fire protection district where the school that is being constructed or altered lies that plans and specifications have been received. In the case of an unincorporated area, the registered county shall be notified. If the municipality, fire protection district, or county requests a review of the plans and specifications, then the school board shall submit a copy of the plans and specifications. The municipality and, if applicable, the fire protection district or the county may comment in writing on the plans and specifications based on the building code authorized in Section 2-3.12, referencing the specific code where a discrepancy has been identified, and respond back to the regional superintendent of schools within 15 days after a copy of the plans and specifications have been received or, if needed for plan review, such additional time as agreed to by the regional superintendent of schools. This review must be at no cost to the school district.

If such plans and specifications are not approved or denied approval by the regional superintendent of schools within 3 months after the date on which they are submitted to him or her, the school board may submit such plans and specifications directly to the State Superintendent of Education for approval or denial.

(Source: P.A. 94-225, eff. 7-14-05.)

(105 ILCS 5/19b-1.1) (from Ch. 122, par. 19b-1.1)

Sec. 19b-1.1. Energy conservation measure. "Energy conservation measure" means any improvement, repair, alteration, or betterment of any building or facility owned or operated by a school district or area vocational center or any equipment, fixture, or furnishing to be added to or used in any such building or facility, according to plans and specifications designed and approved subject to the building code authorized in Section 2-3.12 of this Code, that is proposed 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) (Blank) Energy conservation measures that provide long-term operating cost reductions.

"Energy conservation measure" does not include new construction or building additions beyond the square footage and footprint of the existing buildings or structures currently in existence, except areas required for the sole use of mechanical and electrical upgrades. "Energy conservation measure" does not include new or additional spaces, such as classrooms, gymnasiums, or administrative and common areas. New construction or additions shall be designed and constructed in accordance with the applicable energy conservation laws and codes and may not be included in the calculations of any energy savings with respect to any guaranteed energy savings contract.

(Source: P.A. 95-612, eff. 9-11-07.)

(105 ILCS 5/19b-1.2) (from Ch. 122, par. 19b-1.2)

Sec. 19b-1.2. 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. Energy saving may include energy reduction and offsetting sources of renewable energy funds including renewable energy credits and carbon credits.

(Source: P.A. 96-1197, eff. 7-22-10.)

(105 ILCS 5/19b-1.3) (from Ch. 122, par. 19b-1.3)

Sec. 19b-1.3. 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, and the person or business may not engage in the practice of architecture, engineering, or structural engineering unless the person is licensed or the business is registered in accordance with the Illinois Architecture Practice Act of 1989, the Professional Engineering Practice Act of 1989, or the Structural Engineering Practice Act of 1989 and the rules adopted pursuant to those Acts. A person or business may not engage in the practice of plumbing unless the person is licensed in accordance with the Illinois Plumbing License Law. A qualified provider to whom the contract is awarded shall give a sufficient bond to the school district or area vocational center for its faithful performance.

(Source: P.A. 92-767, eff. 8-6-02.)

(105 ILCS 5/19b-1.4) (from Ch. 122, par. 19b-1.4)

Sec. 19b-1.4. Request for proposals. "Request for proposals" means a competitive selection achieved by negotiated procurement. The request for proposals shall be submitted to the administrators of the Capital Development Board Procurement Bulletin for publication and through at least one public notice, at least 30 days before the request date in a newspaper published in the district or vocational center area, or if no newspaper is published in the district or vocational center area, in a newspaper of general circulation in the area of the district or vocational center, from a school district or area vocational center that will administer the program, 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 school district or area vocation center.

(2) The name, address, title, and phone number of a contact person.

(3) Notice indicating that the school district or area vocational center 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 school district or area vocational center may require.

(Source: P.A. 95-612, eff. 9-11-07; 96-1197, eff. 7-22-10.)

(105 ILCS 5/19b-1.5 new)

Sec. 19b-1.5. Energy operating cost. "Energy operating cost" means any expenditure paid by a school district or area vocational center to a third party for the furnishing of heat, cold, power, electricity, water, or light to any building or facility owned or operated by a school district or area vocational center. "Energy operating cost" shall be directly related to the energy consumption of a structure. "Energy operating cost" does not include calculations related to general maintenance and custodial costs, including, but not limited to, window cleaning, floor waxing, carpet vacuuming and cleaning, mowing of lawns, trash removal, playground maintenance, and similar indirect costs.

(105 ILCS 5/19b-2) (from Ch. 122, par. 19b-2)

Sec. 19b-2. Evaluation of proposal; performance review. Before entering into a guaranteed energy savings contract under Section 19b-3, a school district or area vocational center shall submit a request for proposals. The school district or area vocational center 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 energy operating costs, or both, will be reduced and shall be submitted to the administrators of the Capital Development Board Procurement Bulletin for publication. If technical assistance is not available by the a licensed architect of record or registered professional engineer of record for on the school district or area vocational center staff, then the evaluation of the proposal shall be done by a registered professional engineer or architect, who is retained by the school district or area vocational center. A licensed architect or registered professional engineer evaluating a proposal or reviewing contract performance under this Section must not have any financial or contractual relationship with a qualified provider or other source that would constitute a conflict of interest. The school district or area vocational center may pay a reasonable fee for evaluation of the proposal or the review of contract performance or include the fee as part of the payments made under Section 19b-4.

Performance reviews shall be conducted at least once every 4 years at the discretion of the school district or area vocational center to verify the outcomes of the guaranteed energy savings contract and shall include any improvement, repair, alteration, or betterment of any building or facility owned or operated by a school district or area vocational center or any equipment, fixture, or furnishing added to or used in any such building or facility. A performance review shall be performed during a health and life safety survey under Section 2-3.12 of this Code.

(Source: P.A. 95-612, eff. 9-11-07.)

(105 ILCS 5/19b-2.1 new)

Sec. 19b-2.1. Submission of proposals. Proposals must be properly identified and sealed. Proposals may not be reviewed until after the deadline for submission has passed as set forth in the request for proposals. All qualified providers submitting proposals shall be disclosed after the deadline for submission but not before. Proposals shall identify the names of all parties to the proposed contract, including those that may be subcontracted during the performance of the contract. Proposals must meet all material requirements of the request for proposals, or they may be rejected as non-responsive. Proposals may be withdrawn prior to evaluation for any cause. No person or business who contracts with a local government to write specifications or otherwise provides specifications or assessments for a procurement need under this Section shall submit a bid or proposal or receive a contract for that procurement need. The specifications or assessments may be provided at no cost by a vendor or may be provided by the local government itself. All projects procured under this Section shall comply with Section 2-3.12 of this Code, if applicable, and are subject to review by the State Board of Education.

(105 ILCS 5/19b-3) (from Ch. 122, par. 19b-3)

Sec. 19b-3. Award of guaranteed energy savings contract. Sealed proposals must be opened by a member or employee of the school board or governing board of the area vocational center, whichever is applicable, 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 13 days notice of the time and place of the opening. The school district or area vocational center shall select the qualified provider that best meets the needs of the district or area vocational center. The school district or area vocational center shall provide public notice of the meeting at which it proposes to award a guaranteed energy savings contract of the names of the parties to the proposed contract and of 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 19b-2, a school district or area vocational center 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 operating or operational costs, or both, within an 8-year a 20-year period from the date of installation, if the recommendations in the proposal are followed. Contracts let or awarded must be submitted to the administrators of the Capital Development Board Procurement Bulletin for publication. The final contract and any subsequent modifications and successful proposals, evaluations, and performance reviews shall be considered public records subject to inspection and copying by the public. All subsequent modifications that increase the guaranteed energy savings contract length or scope of work are subject to a new request for proposals pursuant to this Article.

(Source: P.A. 95-612, eff. 9-11-07; 96-1197, eff. 7-22-10.)

(105 ILCS 5/19b-4) (from Ch. 122, par. 19b-4)

Sec. 19b-4. Guarantee. The guaranteed energy savings contract shall include a written guarantee of the qualified provider that either the energy operating or operational cost savings, or both, will meet or exceed within 8 20 years the costs of the energy conservation measures. The qualified provider shall reimburse the school district or area vocational center within 90 days for any shortfall of guaranteed energy savings projected in the contract. A qualified provider shall provide a sufficient bond to the school district or area vocational center 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 8 20 years from the date of final installation of the measures.

(Source: P.A. 92-767, eff. 8-6-02.)

(105 ILCS 5/19b-5) (from Ch. 122, par. 19b-5)

Sec. 19b-5. Installment payment contract; lease purchase agreement. A school district or school districts in combination or an area vocational center may enter into an installment payment contract or lease purchase agreement with a qualified provider or with a third party, as authorized by law, for the funding or financing of the purchase and installation of energy conservation measures by a qualified provider. Every school district or area vocational center 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 supplemental budget adopted by the school district or area vocational center. Each contract or agreement entered into by a school district or area vocational center pursuant to this Section shall be authorized by official action of the school board or governing board of the area vocational center, whichever is applicable. 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 a school district within the 3 years immediately preceding the solicitation, then the school district 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 school district may exclude any proprietary or trademarked information or practices; or

(2) the energy audit provided that the school district may redact any proprietary or trademarked information or practices. For purposes of this Section, proprietary information or practices does not include overhead or profit calculations or allowances. A school district may not withhold the disclosure of information related to (i) the school district's consumption of energy or energy operating costs, (ii) the physical condition of the school district's facilities, and (iii) any limitations prescribed by the school district.

The solicitation must include a written disclosure that identifies any energy services contractor or qualified provider that participated in the preparation of the specifications issued by the school district. If no energy services contractor or qualified provider participated in the preparation of the specifications issued by the school district, then the solicitation must include a written disclosure that no energy services contractor or qualified provider participated in the preparation of the specifications for the school district. The written disclosure shall be published in the Capital Development Board Procurement Bulletin with the Request for Proposal.

(Source: P.A. 96-1197, eff. 7-22-10; 97-333, eff. 8-12-11.)

(105 ILCS 5/19b-7) (from Ch. 122, par. 19b-7)

Sec. 19b-7. Energy operating Operational and energy cost savings. The school district or area vocational center shall document the operational and energy operating 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 operating cost savings are less than projected under the guaranteed energy savings contract, the qualified provider shall, within 90 days, pay the difference as provided in Section 19b-4.

(Source: P.A. 92-767, eff. 8-6-02.)

(105 ILCS 5/19b-8) (from Ch. 122, par. 19b-8)

Sec. 19b-8. Available funds. A school district or area vocational center may use funds designated for energy operating cost operating or capital expenditures for any guaranteed energy savings contract including purchases using installment payment contracts or lease purchase agreements. A school district or area vocational center 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.

(Source: P.A. 92-767, eff. 8-6-02.)

(105 ILCS 5/19b-90 new)

Sec. 19b-90. New or modified contracts prohibited. No new guaranteed energy savings contract, contract modifications, or contract amendments may be entered into on or after January 1, 2021.

(105 ILCS 5/19b-95 new)

Sec. 19b-95. Repeal. This Article is repealed 20 years after the effective date of this amendatory Act of the 101st General Assembly.