102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3711

Introduced 1/21/2022, by Sen. Chapin Rose

SYNOPSIS AS INTRODUCED:
New Act
30 ILCS 500/20-60
30 ILCS 500/40-25
30 ILCS 500/25-45 rep.

Creates the Energy Performance Contracting Act. Requires each governmental unit to implement cost-effective conservation improvements and maintain efficient operation of its facilities in order to minimize energy consumption and related environmental impacts, and reduce operating costs. Provides that any governmental unit may enter into an energy performance contract with a qualified energy service provider to produce utility savings or operating and maintenance cost-savings. Designates the Smart Energy Design Assistance Center as the lead agency for the development and promotion of a program of performance contracts in governmental units under the Act, and provides requirements and duties for that agency. Provides for the selection process of qualified energy service providers. Provides for audits, payments, and term requirements for energy performance contracts entered into under the Act. Provides for the monitoring and reporting of energy consumption and cost-savings under an energy performance contract. Provides for the use of savings from performance contracts. Provides that the provisions of the Act shall prevail and control over conflicting provisions of law, and that any conflicting provisions of any statute enacted prior to the Act are hereby repealed. Defines terms. Amends the Illinois Procurement Code to make conforming changes. Effective immediately.
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A BILL FOR

SB3711LRB102 23140 RJF 32300 b
1 AN ACT concerning finance.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 1. Short title. This Act may be cited as the Energy
5Performance Contracting Act.
6 Section 5. Purpose. The purpose of this Act is to obtain
7long-term energy and cost-savings for all governmental units
8by facilitating prompt incorporation of energy conservation
9improvements or energy production equipment, or both, in
10connection with buildings or facilities owned, operated, or
11under the supervision and control of all governmental units,
12in cooperation with providers of such services and associated
13materials from the private sector. These arrangements will
14improve and protect the health, safety, security, and welfare
15of the people of this State by promoting energy conservation
16and independence, developing alternate sources of energy, and
17fostering business activity.
18 Section 10. Definitions. As used in this Act:
19 "Cost-effective" means that the present value to a
20governmental unit of the energy reasonably expected to be
21saved or produced by a facility, activity, measure, or piece
22of equipment over its useful life, including any compensation

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1received from a utility, is greater than the net present value
2of the costs of implementing, maintaining, and operating such
3facility, activity, measure, or piece of equipment over its
4useful life, when discounted at the cost of public borrowing.
5 "Cost-savings measure" means any facility improvement,
6repair or alteration, or any equipment, fixture, or furnishing
7to be added or used in any facility that is designed to reduce
8energy consumption and operating costs or increase the
9operating efficiency of facilities for their appointed
10functions that are cost-effective. "Cost-savings measure"
11includes, but is not limited to, one or more of the following:
12 (1) replacement or modification of lighting
13 components, fixtures, and systems;
14 (2) renewable energy and alternate energy systems;
15 (3) cogeneration systems that produce steam or forms
16 of energy, such as heat or electricity, for use primarily
17 within a building or complex of buildings;
18 (4) devices that reduce water consumption or sewer
19 charges, including water-conserving fixtures, appliances,
20 and equipment, water-conserving landscape irrigation
21 equipment, or the substitution of non-water using
22 fixtures, appliances, and equipment;
23 (5) landscaping measures that reduce watering demands
24 and capture and hold applied water and rainfall, including
25 landscape contouring, including the use of berms, swales,
26 and terraces, the use of soil amendments that increase the

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1 water-holding capacity of the soil, including compost, and
2 rainwater harvesting equipment and equipment to make use
3 of water collected as part of a storm- water system
4 installed for water quality control;
5 (6) equipment for recycling or reuse of water
6 originating on the premises or from other sources,
7 including treated municipal effluent;
8 (7) equipment needed to capture water from
9 nonconventional, alternate sources, including air
10 conditioning condensate or graywater, for non-potable
11 uses;
12 (8) metering equipment needed to segregate water use
13 in order to identify water conservation opportunities or
14 verify water savings;
15 (9) changes in operation and maintenance practices;
16 (10) indoor air quality improvements that conform to
17 applicable building code requirements;
18 (11) daylighting systems;
19 (12) insulating the building structure or systems in
20 the building;
21 (13) storm windows or doors, caulking or weather
22 stripping, multi-glazed windows or door systems,
23 heat-absorbing or heat-reflective glazed and coated window
24 and door systems, additional glazing, reductions in glass
25 area, or other window and door system modifications that
26 reduce energy consumption;

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1 (14) automated or computerized energy control systems;
2 (15) heating, ventilation, or air conditioning system
3 modifications or replacements;
4 (16) indoor air quality improvements that conform to
5 applicable building code requirements;
6 (17) energy recovery systems;
7 (18) steam trap improvement programs that reduce
8 operating costs;
9 (19) building operation programs that reduce utility
10 and operating costs including, but not limited to,
11 computerized energy management and consumption tracking
12 programs, staff and occupant training, and other similar
13 activities;
14 (20) any life safety measures that provide long-term
15 operating cost reductions and are in compliance with State
16 and local statute;
17 (21) any life safety measures related to compliance
18 with the federal Americans with Disabilities Act that
19 provide long-term operating cost reductions and are in
20 compliance with State and local statute;
21 (22) a program to reduce energy costs through rate
22 adjustments, load shifting to reduce peak demand, and use
23 of alternative energy suppliers, such as, but not limited
24 to:
25 (A) changes to more favorable rate schedules; and
26 (B) negotiation of lower rates, same supplier or

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1 new suppliers, where applicable; and
2 (C) auditing of energy service billing and meters;
3 (23) services to reduce utility costs by identifying
4 utility errors and optimizing existing rate schedules
5 under which service is provided; and
6 (24) any other installation, modification of
7 installation, or remodeling of building infrastructure
8 improvements that produce utility or operational cost
9 savings for their appointed functions in compliance with
10 applicable State and local building codes.
11 "Energy performance contract" or "energy services
12agreement" means a contract between the governmental unit and
13a qualified energy service provider for evaluation,
14recommendation, and implementation of one or more cost-savings
15measures. A performance contract may be structured as either:
16 (1) a guaranteed energy savings performance contract,
17 which shall include, at a minimum, the design and
18 installation of equipment, and, if applicable, operation
19 and maintenance of any of the measures implemented, and
20 guaranteed annual savings which must meet or exceed the
21 total annual contract payments made by the governmental
22 unit for that contract, including financing charges to be
23 incurred by the governmental unit over the life of the
24 contract; or
25 (2) a shared savings contract, which shall include
26 provisions mutually agreed upon by the governmental unit

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1 and the qualified provider or qualified energy service
2 company as to the negotiated rate of payments based upon
3 energy and operational cost-savings and a stipulated
4 maximum energy consumption level over the life of the
5 contract.
6 "Governmental unit" means any State agency, authority, or
7any political subdivision of the State, including public
8institutions of higher education and public community colleges
9located in this State. "Governmental unit" does not include
10units of local government, including counties, cities,
11townships, villages, municipal governments, or local school
12districts. Nothing in this Act prevents the Smart Energy
13Design Assistance Center as the lead agency for the
14development and promotion of a program from contracting or
15partnering with units of local government or local school
16districts throughout the State on a voluntary basis.
17 "Investment grade audit" means a study by the qualified
18energy services provider selected for a particular energy
19performance contract project which includes detailed
20descriptions of the improvements recommended for the project,
21the estimated costs of the improvements, and the utility and
22operations and maintenance cost-savings projected to result
23from the recommended improvements.
24 "Operation and maintenance cost-savings" means a
25measurable decrease in operation and maintenance costs, and
26future replacement expenditures, that are a direct result of

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1the implementation of one or more utility cost-savings
2measures. These savings shall be calculated in comparison with
3an established baseline of operation and maintenance costs.
4 "Person" means any corporate or non-corporate entity or
5individual of any type.
6 "Public building" means any structure, building, or
7facility, including its equipment, furnishings, or appliances
8that is owned or operated by a governmental unit.
9 "Qualified energy service provider" means a person with a
10record of successful energy performance contract projects or a
11person who: (1) is experienced in the design, implementation,
12and installation of energy efficiency and facility improvement
13measures; (2) has the technical capabilities to ensure such
14measures generate energy and operational cost-savings; and (3)
15has the ability to secure the financing necessary to support
16energy savings guarantees.
17 "Utility cost-savings" means any utility expenses that are
18eliminated or avoided on a long-term basis as a result of
19equipment installed or modified, or services performed by a
20qualified energy service provider. "Utility cost-savings" does
21not include merely shifting personnel costs or similar
22short-term cost-savings.
23 Section 15. Authorization.
24 (a) Each governmental unit shall implement cost-effective
25conservation improvements and maintain efficient operation of

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1its facilities in order to minimize energy consumption and
2related environmental impacts, and reduce operating costs.
3Each governmental unit shall undertake an energy audit and
4implement cost-effective conservation measures. Energy
5performance contracting shall be the preferred method for
6completing energy audits and implementing cost-effective
7conservation measures.
8 (b) Any governmental unit may enter into an energy
9performance contract with a qualified energy service provider
10to produce utility savings or operating and maintenance cost
11savings. Cost-savings measures implemented under such
12contracts shall comply with State or local building codes. Any
13governmental unit may implement other capital improvements in
14conjunction with a performance contract so long as the
15measures that are being implemented to achieve energy and
16operations and maintenance cost-savings are a significant
17portion of an overall project. A governmental unit may enter
18into an energy savings performance contract for a period of
19more than one year only if the governmental unit finds that the
20amount the governmental unit would spend on the energy or
21water conservation measures will not exceed the amount to be
22saved in energy, water, wastewater, and operating costs over 8
23years from the date of installation.
24 Section 20. Smart Energy Design Assistance Center (SEDAC).
25 (a) The Smart Energy Design Assistance Center (SEDAC)

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1based at the University of Illinois at Urbana-Champaign is
2hereby designated to be the lead agency for the development
3and promotion of a program of performance contracts in
4governmental units. SEDAC will coordinate its activities with
5the Capital Development Board. SEDAC, under the direction of
6the Governor, will have the following duties with respect to
7this program:
8 (1) assistance to the Capital Development Board to
9 assemble a list of qualified energy service providers and
10 to negotiate master service contracts and pricing
11 schedules with such qualified energy service providers;
12 (2) development of a standardized energy performance
13 contract process and standard energy performance contract
14 documents, including request for qualifications, request
15 for proposals, investment grade audit contract, energy
16 services agreement, including the form of the project
17 savings guarantee, and project financing agreement; and
18 (3) promotion of the energy performance contract
19 program to all governmental units.
20 (b) SEDAC shall establish guidelines and an approval
21process for awarding energy performance contracts. The
22guidelines adopted under this subsection (b) must require that
23the cost-savings projected by a qualified provider be reviewed
24by a licensed professional engineer who has a minimum of 3
25years of experience in energy calculation and review, is not
26an officer or employee of a qualified provider for the

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1contract under review, and is not otherwise associated with
2the contract. In conducting the review, the engineer shall
3focus primarily on the proposed improvements from an
4engineering perspective, the methodology and calculations
5related to cost savings, increases in revenue, and, if
6applicable, efficiency or accuracy of metering equipment. An
7engineer who reviews a contract shall maintain the
8confidentiality of any proprietary information the engineer
9acquires while reviewing the contract.
10 (c) SEDAC shall assist governmental units in identifying,
11evaluating, and implementing cost-effective conservation
12projects at their facilities. The assistance shall include:
13(1) notifying governmental units of their responsibilities
14under this Act; (2) apprising governmental units of
15opportunities to develop and finance energy performance
16contracting projects; (3) providing technical and analytical
17support, including procurement energy performance contracting
18services; (4) reviewing verification procedures for energy
19savings; and (5) assisting in the structuring and arranging of
20financing for energy performance contracting projects.
21 (d) SEDAC is authorized to fix, charge, and collect
22reasonable fees, not to exceed 2% of the total cost of the
23energy performance contract project, for any administrative
24support and resources or other services provided by SEDAC, or
25its designee, under this subsection (d) from the governmental
26units that use its technical support services. Governmental

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1units are authorized to add the costs of these fees to the
2total cost of the energy performance contract.
3 (e) The Governor is encouraged to develop and submit to
4the General Assembly a regular or supplemental budget request
5for the additional funds and staffing required by the Smart
6Energy Design Assistance Center to fulfill the duties required
7under this Section.
8 Section 25. Selection of a qualified energy service
9provider. The State process of implementing energy performance
10contracts for governmental units shall be as provided in this
11Section.
12 (a) Regarding requests for qualifications, the Capital
13Development Board is authorized to assemble a list of
14qualified energy service providers, in accordance with the
15provisions of the Illinois Procurement Code. The Capital
16Development Board shall attempt to use objective criteria in
17the selection process. The criteria for evaluation shall
18include substantive factors to assess the capability of the
19qualified energy service company or qualified provider in the
20areas of design, engineering, installation, maintenance, and
21repairs associated with performance contracts. The substantive
22factors shall be as follows: (1) experience in conversions to
23a different energy or fuel source, so long as it is associated
24with a comprehensive energy efficiency retrofit; (2)
25post-installation project monitoring, data collection, and

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1reporting of savings; (3) overall project experience and
2qualifications; (4) management capability; (5) ability to
3access long-term financing; (6) experience with projects of
4similar size and scope; and (7) other factors determined by
5the governmental unit to be relevant and appropriate and
6relate to the ability to perform the project.
7 (b) Regarding requests for proposals, before entering into
8a performance contract under this Section, a governmental unit
9shall issue a request for proposals from a minimum of 3
10qualified energy service providers. A governmental unit may
11thereafter award the performance contract to the qualified
12energy service company or qualified provider that best meets
13the needs of the governmental unit, which need not be the
14lowest cost provided. A cost-effective feasibility analysis
15shall be prepared in response to the request for proposals.
16The feasibility analysis included in the response to the
17request for proposals shall serve as the selection document
18for purposes of selecting a qualified energy service provider
19to engage in final contract negotiations. Factors to be
20included in selecting among the selected energy service
21providers include contract terms, comprehensiveness of the
22proposal, comprehensiveness of cost-savings measures,
23experience, quality of technical approach, and overall
24benefits to the governmental unit.
25 Section 30. Investment grade audit and contract execution.

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1 (a) One qualified energy service provider selected as a
2result of the process provided under subsection (b) of Section
325 shall prepare an investment grade energy audit, which, upon
4acceptance, shall be part of the final energy performance
5contract or energy services agreement which shall be executed
6with the governmental unit. The investment grade energy audit
7shall include estimates of the amounts by which utility
8cost-savings and operation and maintenance cost-savings would
9increase and estimates of all costs of such utility
10cost-savings measures or energy-savings measures, including,
11but not limited to, itemized costs of design, engineering,
12equipment, materials, installation, maintenance, repairs, and
13debt service.
14 (b) Notwithstanding the provisions of subsection (a), if
15after preparation of the investment grade energy audit the
16governmental unit decides not to execute an energy services
17agreement, and the costs and benefits described in the energy
18audit are not materially different from those described in the
19feasibility study submitted in response to the request for
20proposals, then the costs incurred in preparing the investment
21grade energy audit shall be paid to the qualified energy
22service provider by the governmental unit. Otherwise, the
23costs of the investment grade energy audit shall be deemed
24part of the costs of the energy performance contract or energy
25services agreement.

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1 Section 35. Installment payment and lease-purchase
2agreements.
3 (a) A governmental unit may use designated funds, bonds,
4or master lease for any energy performance contract, including
5purchases using installment payment contracts or
6lease-purchase agreements, so long as that use is consistent
7with the purpose of the appropriation.
8 (b) A guaranteed energy performance savings contract shall
9provide for financing, including tax-exempt financing, by a
10third party. The contract for third party financing may be
11separate from the energy performance contract. A separate
12contract for third party financing must include a provision
13that the third party financier must not be granted rights or
14privileges that exceed the rights and privileges available to
15the guaranteed energy performance savings contractor.
16 Section 40. Payment schedule and savings. Each performance
17contract shall provide that all payments between parties,
18except obligations on termination of the contract before its
19expiration, shall be made over time, and the objective of each
20energy performance contract is implementation of cost-savings
21measures and energy and operational cost-savings.
22 Section 45. Term of Contracts. An energy performance
23contract, and payments provided thereunder, may extend beyond
24the fiscal year in which the energy performance contract

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1became effective, subject to appropriation of moneys, if
2required by law, for costs incurred in future fiscal years.
3The energy performance contract may extend for a term not to
4exceed 25 years. The allowable length of the contract may also
5reflect the useful life of the cost-savings measures. Energy
6performance contracts may provide for payments over a period
7of time not to exceed deadlines specified in the energy
8performance contract from the date of the final installation
9of the cost-saving measures.
10 Section 50. Allocation of obligations. Subject to
11appropriations as provided in Sections 30 and 35 of this Act,
12each governmental unit shall allocate sufficient moneys for
13each fiscal year to make payment of any amounts payable by the
14governmental unit under performance contracts during that
15fiscal year.
16 Section 55. Use of moneys; reconciliation.
17 (a) The governmental unit engaging in the performance
18contract shall retain the savings achieved by entering into
19the performance contract. In no event shall the governmental
20unit utilize those savings to supplant otherwise appropriated
21funds for the governmental unit.
22 (b) Unless otherwise provided by law or ordinance, a
23governmental unit may use funds designated for operating and
24capital expenditures or utilities for any performance

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1contract, including, without limitation, contracts entered
2into under Section 25 of this Act.
3 (c) The energy performance contract may provide that
4reconciliation of the amounts owed under an energy performance
5contract shall occur in a period beyond one year with final
6reconciliation occurring within the term of the performance
7contract.
8 (d) The energy performance contract shall require the
9qualified provider to provide to the governmental unit an
10annual reconciliation of the guaranteed energy cost-savings.
11If the reconciliation reveals a shortfall in annual energy
12cost savings, the qualified provider is liable for that
13shortfall. If the reconciliation reveals an excess in annual
14energy cost savings, the excess savings may be used to cover
15potential energy cost-savings shortages in subsequent contract
16years.
17 Section 60. Monitoring; reports.
18 (a) During the term of each energy performance contract,
19the qualified energy service company or qualified provider
20shall monitor the reductions in energy consumption and
21cost-savings attributable to the cost-savings measures
22installed under the performance contract, and shall, no less
23than annually, prepare and provide a report to the
24governmental unit documenting the performance of the
25cost-savings measures to the governmental unit.

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1 (b) The qualified provider or qualified energy service
2company and governmental unit may agree to make modifications
3in calculating savings based on any of the following
4occurrences:
5 (1) subsequent material change to the baseline energy
6 consumption identified at the beginning of the performance
7 contract;
8 (2) changes in utility rates;
9 (3) changes in the number of days in the utility
10 billing cycle;
11 (4) changes in the total square footage of the
12 building;
13 (5) changes in the operational schedule of the
14 facility;
15 (6) changes in facility temperature;
16 (7) material change in the weather;
17 (8) material changes in the amount of equipment or
18 lighting used at the facility; or
19 (9) any other change which reasonably would be
20 expected to modify energy use or energy costs.
21 (c) For all projects carried out under this Act, the
22governmental unit shall report the name of the project, the
23project host, the investment on the project, and the expected
24energy savings to the Illinois Commerce Commission, and shall
25file with the Illinois Commerce Commission a copy of all
26reconciliation reports delivered under this subsection (c).

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1The Illinois Commerce Commission may report energy savings
2from these projects to the federal Energy Information
3Administration under the Energy Policy Act of 1992 reporting
4standards.
5 Section 65. Contingency provisions. Performance contracts
6shall include contingency provisions if actual savings do not
7meet predicted savings.
8 Section 70. Use of savings from performance contracts.
9Governmental units may direct savings realized under the
10performance contract to contract payment and other expenses as
11they deem necessary. Governmental units are encouraged to
12reinvest savings whenever practical into cost-savings
13measures, so long as the governmental unit is satisfying all
14obligations under the performance contract.
15 Section 75. Act takes precedence; repeal of prior
16conflicting statutes. In case of any conflict between the
17provisions of this Act and any other law, the provisions of
18this Act shall prevail and control. The provisions of any
19statute enacted prior to this Act which are inconsistent with
20this Act are hereby repealed. The Attorney General shall
21consult with the Smart Energy Design Assistance Center (SEDAC)
22in construing this Section.

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1 Section 100. The Illinois Procurement Code is amended by
2changing Sections 20-60 and 40-25 as follows:
3 (30 ILCS 500/20-60)
4 (Text of Section before amendment by P.A. 101-657, Article
540, Section 40-125)
6 Sec. 20-60. Duration of contracts.
7 (a) Maximum duration. A contract may be entered into for
8any period of time deemed to be in the best interests of the
9State but not exceeding 10 years inclusive, beginning January
101, 2010, of proposed contract renewals. Third parties may
11lease State-owned dark fiber networks for any period of time
12deemed to be in the best interest of the State, but not
13exceeding 20 years. The length of a lease for real property or
14capital improvements shall be in accordance with the
15provisions of Section 40-25. The length of energy conservation
16program contracts or energy savings contracts or leases shall
17be in accordance with the provisions of Section 25-45. A
18contract for bond or mortgage insurance awarded by the
19Illinois Housing Development Authority, however, may be
20entered into for any period of time less than or equal to the
21maximum period of time that the subject bond or mortgage may
22remain outstanding.
23 (b) Subject to appropriation. All contracts made or
24entered into shall recite that they are subject to termination
25and cancellation in any year for which the General Assembly

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1fails to make an appropriation to make payments under the
2terms of the contract.
3 (c) The chief procurement officer shall file a proposed
4extension or renewal of a contract with the Procurement Policy
5Board prior to entering into any extension or renewal if the
6cost associated with the extension or renewal exceeds
7$249,999. The Procurement Policy Board may object to the
8proposed extension or renewal within 30 calendar days and
9require a hearing before the Board prior to entering into the
10extension or renewal. If the Procurement Policy Board does not
11object within 30 calendar days or takes affirmative action to
12recommend the extension or renewal, the chief procurement
13officer may enter into the extension or renewal of a contract.
14This subsection does not apply to any emergency procurement,
15any procurement under Article 40, or any procurement exempted
16by Section 1-10(b) of this Code. If any State agency contract
17is paid for in whole or in part with federal-aid funds, grants,
18or loans and the provisions of this subsection would result in
19the loss of those federal-aid funds, grants, or loans, then
20the contract is exempt from the provisions of this subsection
21in order to remain eligible for those federal-aid funds,
22grants, or loans, and the State agency shall file notice of
23this exemption with the Procurement Policy Board prior to
24entering into the proposed extension or renewal. Nothing in
25this subsection permits a chief procurement officer to enter
26into an extension or renewal in violation of subsection (a).

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1By August 1 each year, the Procurement Policy Board shall file
2a report with the General Assembly identifying for the
3previous fiscal year (i) the proposed extensions or renewals
4that were filed with the Board and whether the Board objected
5and (ii) the contracts exempt from this subsection.
6 (d) Notwithstanding the provisions of subsection (a) of
7this Section, the Department of Innovation and Technology may
8enter into leases for dark fiber networks for any period of
9time deemed to be in the best interests of the State but not
10exceeding 20 years inclusive. The Department of Innovation and
11Technology may lease dark fiber networks from third parties
12only for the primary purpose of providing services (i) to the
13offices of Governor, Lieutenant Governor, Attorney General,
14Secretary of State, Comptroller, or Treasurer and State
15agencies, as defined under Section 5-15 of the Civil
16Administrative Code of Illinois or (ii) for anchor
17institutions, as defined in Section 7 of the Illinois Century
18Network Act. Dark fiber network lease contracts shall be
19subject to all other provisions of this Code and any
20applicable rules or requirements, including, but not limited
21to, publication of lease solicitations, use of standard State
22contracting terms and conditions, and approval of vendor
23certifications and financial disclosures.
24 (e) As used in this Section, "dark fiber network" means a
25network of fiber optic cables laid but currently unused by a
26third party that the third party is leasing for use as network

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1infrastructure.
2 (f) No vendor shall be eligible for renewal of a contract
3when that vendor has failed to meet the goals agreed to in the
4vendor's utilization plan unless the State agency has
5determined that the vendor made good faith efforts toward
6meeting the contract goals and has issued a waiver or that
7vendor is not otherwise excused from compliance by the chief
8procurement officer in consultation with the purchasing State
9agency. The form and content of the waiver shall be prescribed
10by each chief procurement officer who shall maintain on his or
11her official website a database of waivers granted under this
12Section with respect to contracts under his or her
13jurisdiction. The database shall be updated periodically and
14shall be searchable by contractor name and by contracting
15State agency or public institution of higher education.
16(Source: P.A. 100-23, eff. 7-6-17; 100-611, eff. 7-20-18;
17101-81, eff. 7-12-19; 101-657, Article 5, Section 5-5, eff.
187-1-21 (See Section 25 of P.A. 102-29 for effective date of
19P.A. 101-657, Article 5, Section 5-5); 102-29, eff. 6-25-21.)
20 (Text of Section after amendment by P.A. 101-657, Article
2140, Section 40-125)
22 Sec. 20-60. Duration of contracts.
23 (a) Maximum duration. A contract may be entered into for
24any period of time deemed to be in the best interests of the
25State but not exceeding 10 years inclusive, beginning January

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11, 2010, of proposed contract renewals. Third parties may
2lease State-owned dark fiber networks for any period of time
3deemed to be in the best interest of the State, but not
4exceeding 20 years. The length of a lease for real property or
5capital improvements shall be in accordance with the
6provisions of Section 40-25. The length of energy conservation
7program contracts or energy savings contracts or leases shall
8be in accordance with the provisions of 45 of the Energy
9Performance Contracting Act Section 25-45. A contract for bond
10or mortgage insurance awarded by the Illinois Housing
11Development Authority, however, may be entered into for any
12period of time less than or equal to the maximum period of time
13that the subject bond or mortgage may remain outstanding.
14 (b) Subject to appropriation. All contracts made or
15entered into shall recite that they are subject to termination
16and cancellation in any year for which the General Assembly
17fails to make an appropriation to make payments under the
18terms of the contract.
19 (c) The chief procurement officer shall file a proposed
20extension or renewal of a contract with the Procurement Policy
21Board and the Commission on Equity and Inclusion prior to
22entering into any extension or renewal if the cost associated
23with the extension or renewal exceeds $249,999. The
24Procurement Policy Board or the Commission on Equity and
25Inclusion may object to the proposed extension or renewal
26within 30 calendar days and require a hearing before the Board

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1or the Commission on Equity and Inclusion prior to entering
2into the extension or renewal. If the Procurement Policy Board
3or the Commission on Equity and Inclusion does not object
4within 30 calendar days or takes affirmative action to
5recommend the extension or renewal, the chief procurement
6officer may enter into the extension or renewal of a contract.
7This subsection does not apply to any emergency procurement,
8any procurement under Article 40, or any procurement exempted
9by Section 1-10(b) of this Code. If any State agency contract
10is paid for in whole or in part with federal-aid funds, grants,
11or loans and the provisions of this subsection would result in
12the loss of those federal-aid funds, grants, or loans, then
13the contract is exempt from the provisions of this subsection
14in order to remain eligible for those federal-aid funds,
15grants, or loans, and the State agency shall file notice of
16this exemption with the Procurement Policy Board or the
17Commission on Equity and Inclusion prior to entering into the
18proposed extension or renewal. Nothing in this subsection
19permits a chief procurement officer to enter into an extension
20or renewal in violation of subsection (a). By August 1 each
21year, the Procurement Policy Board and the Commission on
22Equity and Inclusion shall each file a report with the General
23Assembly identifying for the previous fiscal year (i) the
24proposed extensions or renewals that were filed and whether
25such extensions and renewals were objected to and (ii) the
26contracts exempt from this subsection.

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1 (d) Notwithstanding the provisions of subsection (a) of
2this Section, the Department of Innovation and Technology may
3enter into leases for dark fiber networks for any period of
4time deemed to be in the best interests of the State but not
5exceeding 20 years inclusive. The Department of Innovation and
6Technology may lease dark fiber networks from third parties
7only for the primary purpose of providing services (i) to the
8offices of Governor, Lieutenant Governor, Attorney General,
9Secretary of State, Comptroller, or Treasurer and State
10agencies, as defined under Section 5-15 of the Civil
11Administrative Code of Illinois or (ii) for anchor
12institutions, as defined in Section 7 of the Illinois Century
13Network Act. Dark fiber network lease contracts shall be
14subject to all other provisions of this Code and any
15applicable rules or requirements, including, but not limited
16to, publication of lease solicitations, use of standard State
17contracting terms and conditions, and approval of vendor
18certifications and financial disclosures.
19 (e) As used in this Section, "dark fiber network" means a
20network of fiber optic cables laid but currently unused by a
21third party that the third party is leasing for use as network
22infrastructure.
23 (f) No vendor shall be eligible for renewal of a contract
24when that vendor has failed to meet the goals agreed to in the
25vendor's utilization plan, as defined in Section 2 of the
26Business Enterprise for Minorities, Women, and Persons with

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1Disabilities Act, unless the State agency has determined that
2the vendor made good faith efforts toward meeting the contract
3goals. If the State agency determines that the vendor made
4good faith efforts, the agency may issue a waiver after
5concurrence by the chief procurement officer. The form and
6content of the waiver shall be prescribed by each chief
7procurement officer who shall maintain on his or her official
8website a database of waivers granted under this Section with
9respect to contracts under his or her jurisdiction. The
10database shall be updated periodically and shall be searchable
11by contractor name and by contracting State agency or public
12institution of higher education.
13(Source: P.A. 101-81, eff. 7-12-19; 101-657, Article 5,
14Section 5-5, eff. 7-1-21 (See Section 25 of P.A. 102-29 for
15effective date of P.A. 101-657, Article 5, Section 5-5);
16101-657, Article 40, Section 40-125, eff. 1-1-22; 102-29, eff.
176-25-21.)
18 (30 ILCS 500/40-25)
19 Sec. 40-25. Length of leases.
20 (a) Maximum term. Except as otherwise provided under
21subsection (a-5), leases shall be for a term not to exceed 10
22years inclusive, beginning January, 1, 2010, of proposed
23contract renewals and shall include a termination option in
24favor of the State after 5 years. The length of energy
25conservation program contracts or energy savings contracts or

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1leases shall be in accordance with the provisions of Section
245 of the Energy Performance Contracting Act 25-45.
3 (a-5) Extended term. A lease for real property owned by
4the University of Illinois to be used by the University of
5Illinois at Chicago for an ambulatory surgical center, which
6would include both clinical services and retail space, may
7exceed 10 years in length where: (i) the lease requires the
8lessor to make capital improvements in excess of $100,000; and
9(ii) the Board of Trustees of the University of Illinois
10determines a term of more than 10 years is necessary and is in
11the best interest of the University. A lease under this
12subsection (a-5) may not exceed 30 years in length.
13 (b) Renewal. Leases may include a renewal option. An
14option to renew may be exercised only when a State purchasing
15officer determines in writing that renewal is in the best
16interest of the State and notice of the exercise of the option
17is published in the appropriate volume of the Procurement
18Bulletin at least 30 calendar days prior to the exercise of the
19option.
20 (c) Subject to appropriation. All leases shall recite that
21they are subject to termination and cancellation in any year
22for which the General Assembly fails to make an appropriation
23to make payments under the terms of the lease.
24 (d) Holdover. Beginning January 1, 2010, no lease may
25continue on a month-to-month or other holdover basis for a
26total of more than 6 months. Beginning July 1, 2010, the

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1Comptroller shall withhold payment of leases beyond this
2holdover period.
3(Source: P.A. 100-23, eff. 7-6-17; 100-1047, eff. 1-1-19;
4101-426, eff. 1-1-20.)
5 (30 ILCS 500/25-45 rep.)
6 Section 105. The Illinois Procurement Code is amended by
7repealing Section 25-45.
8 Section 995. No acceleration or delay. Where this Act
9makes changes in a statute that is represented in this Act by
10text that is not yet or no longer in effect (for example, a
11Section represented by multiple versions), the use of that
12text does not accelerate or delay the taking effect of (i) the
13changes made by this Act or (ii) provisions derived from any
14other Public Act.
15 Section 999. Effective date. This Act takes effect upon
16becoming law.