Bill Text: IL SB1277 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Power Agency Act. Prohibits a company that provides solar project installation services or solar facility installation services from installing a solar project or solar facility in Illinois without posting and maintaining, with the Illinois Power Agency, a surety bond in the amount of $2,000,000 or such higher amount as is annually set by the Agency by rule. Requires the Agency to adopt rules to establish requirements for the mandated surety bonds and procedures for posting and maintaining those bonds. Requires the rules adopted by the Agency to prescribe the type and amount of the surety bond required and the conditions under which the Agency is entitled to collect moneys from such bonds. Authorizes the rules adopted by the Agency to contain any other provisions the Agency deems necessary to administer the provisions of the amendatory Act. Directs the Agency to annually adjust the amount of the required surety bond beginning 2 years after the effective date of the amendatory Act. Creates the Solar Installation Fund. Provides that any moneys forfeited to the State from the required surety bonds shall be deposited into the Solar Installation Fund and shall, upon approval by the Governor and the Director of the Agency, be used by and under the direction of the Agency for the purpose of ensuring that certain rebate and warranty obligations of such a company are met. Authorizes the Agency to enter into contracts and agreements it deems necessary to carry out the provisions of the amendatory Act. Provides that neither the State, nor the Director of the Agency, nor any State employee shall be liable for any damages or injuries arising out of or resulting from any action taken under the provisions of the amendatory Act. Allows the Agency to approve or disapprove any surety bond. Allows a person whose surety bond is disapproved to contest the disapproval. Makes a conforming change in the State Finance Act.

Spectrum: Partisan Bill (Republican 3-0)

Status: (Introduced) 2025-01-29 - Added as Chief Co-Sponsor Sen. Dave Syverson [SB1277 Detail]

Download: Illinois-2025-SB1277-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1277 Introduced 1/28/2025, by Sen. Li Arellano, Jr. - Chris Balkema SYNOPSIS AS INTRODUCED:
20 ILCS 3855/1-56.5 new
30 ILCS 105/5.1030 new
Amends the Illinois Power Agency Act. Prohibits a company that provides solar project installation services or solar facility installation services from installing a solar project or solar facility in Illinois without posting and maintaining, with the Illinois Power Agency, a surety bond in the amount of $2,000,000 or such higher amount as is annually set by the Agency by rule. Requires the Agency to adopt rules to establish requirements for the mandated surety bonds and procedures for posting and maintaining those bonds. Requires the rules adopted by the Agency to prescribe the type and amount of the surety bond required and the conditions under which the Agency is entitled to collect moneys from such bonds. Authorizes the rules adopted by the Agency to contain any other provisions the Agency deems necessary to administer the provisions of the amendatory Act. Directs the Agency to annually adjust the amount of the required surety bond beginning 2 years after the effective date of the amendatory Act. Creates the Solar Installation Fund. Provides that any moneys forfeited to the State from the required surety bonds shall be deposited into the Solar Installation Fund and shall, upon approval by the Governor and the Director of the Agency, be used by and under the direction of the Agency for the purpose of ensuring that certain rebate and warranty obligations of such a company are met. Authorizes the Agency to enter into contracts and agreements it deems necessary to carry out the provisions of the amendatory Act. Provides that neither the State, nor the Director of the Agency, nor any State employee shall be liable for any damages or injuries arising out of or resulting from any action taken under the provisions of the amendatory Act. Allows the Agency to approve or disapprove any surety bond. Allows a person whose surety bond is disapproved to contest the disapproval. Makes a conforming change in the State Finance Act.
LRB104 06361 AAS 16397 b
A BILL FOR
SB1277 LRB104 06361 AAS 16397 b
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Power Agency Act is amended by
adding Section 1-56.5 as follows:
(20 ILCS 3855/1-56.5 new)
Sec. 1-56.5. Surety bonds required for solar installers to
ensure payment of warranty and rebate obligations.
(a) Beginning one year after the effective date of this
amendatory Act of the 104th General Assembly, a company that
provides solar project installation services or solar facility
installation services shall not install a solar project or
solar facility in this State unless that company has posted
and maintained, with the Agency, a surety bond in the amount of
$2,000,000 or such higher amount as is annually set by the
Agency by rule under subsection (b), for the purpose of
ensuring, regardless of whether the company closes, files for
bankruptcy protection, or reorganizes, that:
(1) all of the company's warranty obligations to
customers in the State are met; and
(2) all of the rebate payments owed by the company to
customers in the State are paid.
(b) Within 6 months after the effective date of this

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amendatory Act of the 104th General Assembly, the Agency shall
adopt rules establishing requirements for the surety bonds
described in this Section and the procedures for posting and
maintaining those surety bonds with the Agency. The rules
adopted under this subsection (b) shall prescribe the type and
amount of the surety bond required under this Section and the
conditions under which the Agency is entitled to collect
moneys from such bonds. The rules adopted under this
subsection (b) may also contain any other provisions the
Agency deems necessary to administer this Section. Beginning 2
years after the effective date of this amendatory Act of the
104th General Assembly, the Agency shall, by rule, annually
adjust the amount of the surety bond required under this
Section.
(c) There is hereby created within the State treasury a
special fund to be known as the Solar Installation Fund. Any
moneys forfeited to the State from any surety bond required
under this Section shall be deposited into the Solar
Installation Fund and shall, upon approval by the Governor and
the Director, be used by and under the direction of the Agency
for the purposes for which such surety bond was issued. The
Solar Installation Fund is not subject to the provisions of
subsection (c) of Section 5 of the State Finance Act.
(d) The Agency may enter into any contract or agreement
that it deems necessary to carry out the purposes of this
Section. Neither the State, nor the Director, nor any State

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employee shall be liable for any damages or injuries arising
out of or resulting from any action taken under this Section.
(e) The Agency may approve or disapprove any surety bond
required under this Section. Any person whose surety bond is
disapproved by the Agency may contest the disapproval under
the Administrative Review Law.
(f) Nothing in this Section shall bar a cause of action by
the State for any other penalty or relief provided by this Act
or any other law.
Section 10. The State Finance Act is amended by adding
Section 5.1030 as follows:
(30 ILCS 105/5.1030 new)
Sec. 5.1030. The Solar Installation Fund.