HB1504ham001 97TH GENERAL ASSEMBLY

Rep. Brandon W. Phelps

Filed: 3/10/2011

09700HB1504ham001 LRB097 10230 PJG 50916 a

AMENDMENT TO HOUSE BILL 1504

AMENDMENT NO. ______. Amend House Bill 1504 by replacing everything after the enacting clause with the following:

"Section 5. The Illinois Procurement Code is amended by changing Sections 20-5 and 25-45 and by adding the heading of Article 32 and Sections 32-3, 32-4, 32-5, 32-10, 32-15, 32-20, and 32-25 as follows:

(30 ILCS 500/20-5)

Sec. 20-5. Method of source selection. Unless otherwise authorized by law, all State contracts shall be awarded by competitive sealed bidding, in accordance with Section 20-10, except as provided in Sections 20-15, 20-20, 20-25, 20-30, 20-32, 20-35, 30-15, and 40-20.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/25-45)

Sec. 25-45. Energy conservation program. State purchasing officers may enter into energy conservation program contracts that provide for utility cost savings. The chief procurement officer shall promulgate and adopt rules in accordance with Article 32 of this Act for the implementation of this Section.

For the purposes of promoting energy conservation and carbon reduction in State owned facilities, the State purchasing officer of the Illinois Department of Corrections (IDOC) shall work in conjunction with the State purchasing officer of the Capital Development Board (CDB) to follow the procedure prescribed in Article 32 of this Act for the procurement of guaranteed energy saving contracts. After evaluating proposals, IDOC shall enter into a contract with the qualified provider to reduce energy usage and carbon footprints of the correctional facilities administered by IDOC. If, in the judgment of IDOC and CDB, it is in the State's best interest to award contracts to more than one qualified provider, they may do so. The State shall award any contracts under this paragraph by March 1, 2012. This paragraph is no longer operative after January 1, 2013.

(Source: P.A. 90-572, eff. date - See Sec. 99-5.)

(30 ILCS 500/Art. 32 heading new)

ARTICLE 32. ENERGY CONSERVATION MEASURES

(30 ILCS 500/32-3 new)

Sec. 32-3. Applicable laws. Other State laws and related administrative requirements apply to this Article, including, but not limited to, the following laws and related administrative requirements: the Illinois Human Rights Act, the Prevailing Wage Act, the Public Construction Bond Act, the Public Works Preference Act, the Employment of Illinois Workers on Public Works Act, the Freedom of Information Act, the Open Meetings Act, the Illinois Architecture Practice Act of 1989, the Professional Engineering Practice Act of 1989, the Structural Engineering Practice Act of 1989, and the Contractor Unified License and Permit Bond Act.

(30 ILCS 500/32-4 new)

Sec. 32-4. Applicability. In order to protect the integrity of historic buildings, no provision of this Article shall be interpreted to require the implementation of energy conservation measures that conflict with respect to any property eligible for, nominated to, or entered on the National Register of Historic Places, pursuant to the National Historic Preservation Act of 1966, or the Illinois Register of Historic Places, pursuant to the Illinois Historic Preservation Act.

(30 ILCS 500/32-5 new)

Sec. 32-5. Definitions. As used in this Article, unless the context clearly requires otherwise:

"Energy conservation measure" means any improvement, repair, alteration, or betterment of any building or facility owned or operated by the State or any equipment, fixture, or furnishing to be added to or used in any such building or facility, subject to all applicable building codes, 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.

"Guaranteed energy savings contract" means a contract for: (i) the implementation of an energy audit, data collection, and other related analyses preliminary to the undertaking of energy conservation measures; (ii) the evaluation and recommendation of energy conservation measures; (iii) the implementation of one or more energy conservation measures; and (iv) the implementation of project monitoring and data collection to verify post-installation energy consumption and energy-related operating costs. The contract shall provide that all payments, except obligations on termination of the contract before its expiration, are to be made over time and that the savings are guaranteed to the extent necessary to pay the costs of the energy conservation measures. Energy savings may include energy reduction and offsetting sources of renewable energy funds including renewable energy credits and carbon credits.

"Qualified provider" means a person 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 paragraph 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 State agency for its faithful performance.

"Request for proposals" means a competitive selection achieved by negotiated procurement. The request for proposals shall be announced through public notice, at least 14 days before the request date, in the Illinois Procurement Bulletin, from the State purchasing officer 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 State agency.

(2) The name, address, title, and phone number of the State purchasing officer.

(3) Notice indicating that the State agency 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 State agency may require.

(30 ILCS 500/32-10 new)

Sec. 32-10. Evaluation of proposal. Before entering into a guaranteed energy savings contract under Section 32-15, a State purchasing officer shall submit a request for proposals. The State purchasing officer 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 State agency's staff, then the evaluation of the proposal shall be done by a registered professional engineer or architect who is retained by the State agency. Any licensed architect or registered professional engineer evaluating a proposal under this Section may not have any financial or contractual relationship with a qualified provider or other source that would constitute a conflict of interest. The State agency may pay a reasonable fee for evaluation of the proposal or include the fee as part of the payments made under Section 32-20.

(30 ILCS 500/32-15 new)

Sec. 32-15. Award of guaranteed energy savings contract. Sealed proposals must be opened by the State purchasing officer 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 State purchasing officer shall select the qualified provider that best meets the needs of the State agency. The State agency shall provide public notice of (i) the meeting at which it proposes to award a guaranteed energy savings contract, (ii) the names of the parties to the proposed contract, and (iii) 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 32-10, the Capital Development Board may enter into a guaranteed energy savings contract with a qualified provider if it finds that the amount the State agency would spend on the energy conservation measures recommended in the proposal would not exceed the amount to be saved in either energy or operational costs, or both, within a 20-year period from the date of installation, if the recommendations in the proposal are followed.

(30 ILCS 500/32-20 new)

Sec. 32-20. 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 20 years the costs of the energy conservation measures. The qualified provider shall reimburse the State agency for any shortfall of guaranteed energy savings projected in the contract. A qualified provider shall provide a sufficient bond to the State agency for the installation and the faithful performance of all the measures included in the contract. The guaranteed energy savings contract may provide for payments over a period of time, not to exceed 20 years from the date of the final installation of the measures.

(30 ILCS 500/32-25 new)

Sec. 32-25. Operational and energy cost savings. The State agency shall document the operational and energy cost savings specified in the guaranteed energy savings contract and shall designate and appropriate that amount for an annual payment of the contract. If the annual energy savings are less than projected under the guaranteed energy savings contract, the qualified provider shall pay the difference as provided in Section 32-20.

Section 99. Effective date. This Act takes effect upon becoming law.".