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
 
SB1277LRB104 06361 AAS 16397 b


1    AN ACT concerning State government.

2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:

4    Section 5. The Illinois Power Agency Act is amended by 
5adding Section 1-56.5 as follows:

6    (20 ILCS 3855/1-56.5 new)
7    Sec. 1-56.5. Surety bonds required for solar installers to 
8ensure payment of warranty and rebate obligations.    
9    (a) Beginning one year after the effective date of this 
10amendatory Act of the 104th General Assembly, a company that 
11provides solar project installation services or solar facility 
12installation services shall not install a solar project or 
13solar facility in this State unless that company has posted 
14and maintained, with the Agency, a surety bond in the amount of 
15$2,000,000 or such higher amount as is annually set by the 
16Agency by rule under subsection (b), for the purpose of 
17ensuring, regardless of whether the company closes, files for 
18bankruptcy protection, or reorganizes, that:
19        (1) all of the company's warranty obligations to 
20 customers in the State are met; and    
21        (2) all of the rebate payments owed by the company to 
22 customers in the State are paid.    
23    (b) Within 6 months after the effective date of this 
 
 
SB1277- 2 -LRB104 06361 AAS 16397 b


1amendatory Act of the 104th General Assembly, the Agency shall 
2adopt rules establishing requirements for the surety bonds 
3described in this Section and the procedures for posting and 
4maintaining those surety bonds with the Agency. The rules 
5adopted under this subsection (b) shall prescribe the type and 
6amount of the surety bond required under this Section and the 
7conditions under which the Agency is entitled to collect 
8moneys from such bonds. The rules adopted under this 
9subsection (b) may also contain any other provisions the 
10Agency deems necessary to administer this Section. Beginning 2 
11years after the effective date of this amendatory Act of the 
12104th General Assembly, the Agency shall, by rule, annually 
13adjust the amount of the surety bond required under this 
14Section.    
15    (c) There is hereby created within the State treasury a 
16special fund to be known as the Solar Installation Fund. Any 
17moneys forfeited to the State from any surety bond required 
18under this Section shall be deposited into the Solar 
19Installation Fund and shall, upon approval by the Governor and 
20the Director, be used by and under the direction of the Agency 
21for the purposes for which such surety bond was issued. The 
22Solar Installation Fund is not subject to the provisions of 
23subsection (c) of Section 5 of the State Finance Act.    
24    (d) The Agency may enter into any contract or agreement 
25that it deems necessary to carry out the purposes of this 
26Section. Neither the State, nor the Director, nor any State 
 
 
SB1277- 3 -LRB104 06361 AAS 16397 b


1employee shall be liable for any damages or injuries arising 
2out of or resulting from any action taken under this Section.    
3    (e) The Agency may approve or disapprove any surety bond 
4required under this Section. Any person whose surety bond is 
5disapproved by the Agency may contest the disapproval under 
6the Administrative Review Law.    
7    (f) Nothing in this Section shall bar a cause of action by 
8the State for any other penalty or relief provided by this Act 
9or any other law.    

10    Section 10. The State Finance Act is amended by adding 
11Section 5.1030 as follows:

12    (30 ILCS 105/5.1030 new)
13    Sec. 5.1030. The Solar Installation Fund.